DoD Comptroller: “We are making progress.”

What exactly is audit readiness, and is the Department of Defense (DoD) ready for a full-scale audit? Congress requires Federal agencies to produce auditable financial statements annually, after the agencies confirm that the statements are ready for an audit. Prior to a full audit, a pre-audit is performed to determine whether or not the offices or agencies are prepared for the full audit. In order to aid the government, regarding audit readiness, the financial improvement and audit readiness (FIAR) was created as a guide to prepare for a full audit.

According to an article from the American Society of Military Comptrollers, DoD’s Comptroller Mike McCord states, “The DoD is making sound progress toward meeting full audit accountability and DoD’s leaders expect to meet the goal of full financial statement audit readiness by FY18.”  McCord testified before the House Armed Services Committee stressing the success and demonstration of the DoD’s commitment to achieve auditable financial statements. A joint statement from the Military Departments also emphasized the importance of audit readiness.

At St. Michael’s, we assist organizations with audit readiness and financial management on a daily basis. We correctly record and examine obligations and expenditures in accounting entitlement systems to determine common pitfalls and help achieve a fully compliant financial statement. Our expertise helps overcome challenges by implementing business practices that support DoD audit objectives and financial management.