Accession Number:

ADA580059

Title:

The Audit Opinion of the DISA FY 2011 Working Capital Fund Financial Statements Was Not Adequately Supported

Descriptive Note:

Audit rept.

Corporate Author:

OFFICE OF THE INSPECTOR GENERAL (DEPARTMENT OF DEFENSE) ALEXANDRIA VA

Personal Author(s):

• Vasquez, Richard B.

Report Date:

2013-04-26

Pagination or Media Count:

71.0

Abstract:

We determined the adequacy of Acuity Consultings Acuity auditing procedures for the Defense Information Systems Agency DISA FY 2011 Working Capital Fund WCF Financial Statements. We also determined whether the contract oversight was sufficient. Acuitys auditing procedures on the DISA FY 2011 WCF Financial Statements were inadequate. Specifically, Acuity did not properly test the DISA Fund Balance with Treasury FBWT reconciliations determine whether the undistributed accounts were free of material misstatements adequately assess whether the deficiencies identified by DISA in its FBWT memorandums for record would have a material impact on the financial statements and Acuitys opinion perform adequate testing on Property, Plant, and Equipment and state in its auditors report that the DISA financial statement disclosures were inadequate. This occurred because Acuity did not perform the audit in accordance with GAGAS, the FAM, and the AICPA standards. In addition, the contract oversight was not sufficient because the Director, Procurement and Logistics Directorate PLD prohibited the contracting officers representative COR from completing key duties required to provide oversight of Acuitys work. As a result, Acuity did not have sufficient evidence to issue an unqualified opinion on DISAs FY 2011 WCF Financial Statements. Furthermore, the DoD does not have assurance that the DISA FY 2011 WCF Financial Statements are free of material misstatements. The Director, DISA should review the actions of the Director, PLD ensure that individuals performing contract oversight of financial statement audits are qualified DISA employees and seek a refund from Acuity. The Managing Partner, Acuity should withdraw their opinion and review the planned work on future audits to gather sufficient evidence to support their opinion.

Descriptors:

• *AUDITING
• *CONSULTING SERVICES
• *DEPARTMENT OF DEFENSE
• *FINANCIAL MANAGEMENT
• *RECORDS MANAGEMENT
• *STANDARDS
• CONTRACTS
• DEFICIENCIES

Subject Categories:

• Administration and Management
• Economics and Cost Analysis
• Military Forces and Organizations

Distribution Statement:

APPROVED FOR PUBLIC RELEASE