Jun 09, 2017
From the Government Institute
The Chief Financial Officers (CFO) Act of 1990 drove financial management reform across the federal government. Included in the CFO Act is the requirement that applicable federal agencies obtain audited financial statements. As one of the agencies required to comply with the CFO Act, the Department of Defense continues its journey to become the last CFO Act agency to undergo full financial statement audits. The DoD has made crucial steps towards that goal, as of 2016, a significant number of budget items were subject to audit and all military services underwent audits of current and prior year (2015) budgeted activity. While progress has been made, significant obstacles remain.
To help user entities effectively address this complex and persistent obstacle to audit readiness, KPMG LLP prepared this issue brief to highlight leading practices associated with the implementation of service organization/SOC 1 report evaluation programs.