Publicly Released: January 11, 2023
This final report provides the results of the DoD Office of Inspector General’s external peer review (peer review) on the Army Internal Review Program.
We reviewed the system of quality control for the Army Internal Review (IR) Program in effect for the 3-year period that ended on December 31, 2021. A system of quality control encompasses the Army IR Program’s structure, policies adopted, and procedures established to provide it with reasonable assurance of conforming in all material respects with the Government Auditing Standards and applicable legal and regulatory requirements.
In our opinion, except for the deficiencies described in this report, the system of quality control for the Army IR Program in effect for the 3-year period that ended on December 31, 2021, has been suitably designed and complied with to provide it with reasonable assurance of performing and reporting in conformity in all material respects with the Government Auditing Standards and applicable legal and regulatory requirements. Audit organizations can receive a rating of pass, pass with deficiencies, or fail. The Army IR Program has received an external peer review rating of pass with deficiencies.
Recommendations
We recommend that the Headquarters, U.S. Army Installation Management Command Internal Review Director:
- provide training to the audit staff to improve their understanding and knowledge of Government Auditing Standards and American Institute of Certified Public Accountants standards for reporting on agreed‑upon procedures engagements; and
- develop a plan for the auditors to obtain training on performing procedures to monitor its system of quality control in accordance with Government Auditing Standard 5.43.
We also recommend that the Deputy Assistant Secretary of the Army (Financial Operations and Information):
- develop a process for the monitoring of quality within the Army Internal Review offices that is appropriate for the size of the audit organization in accordance with Government Auditing Standard 5.43‑5.44; and
- issue a memorandum that reminds Army Internal Review Program auditors to determine and document the existence of any ongoing investigations or legal proceedings that are significant within the context of the audit objectives in accordance with Government Auditing Standards 8.27 and 8.29.