1. Solutions Within Reach
Audit Readiness
April 28, 2015
MBC Capabilities Brief
2011

2. Introduction CSCI Briefers Company Overview Purpose
Increase awareness for upcoming audits
Share lessons learned from internal sustainment testing
Provide best practices for preparation and communication for sustaining Audit Readiness

3. Topics of Discussion
Defining Audit Readiness
Levels of Audit Readiness
MICP and Audit Readiness
Understanding the Requirements
Lessons Learned
Best Practices
Sustaining Audit Readiness
Resources and Questions

4. Defining Audit Readiness
What is Audit Readiness?
Audit Readiness Definition: A state of being prepared to demonstrate proper manual and automated processes and documents (i.e. process controls, financial controls, and information technology controls) that are executed in accordance with policy and accounting standards.

5. Levels of Audit Readiness
Reporting Entity vs. Non- Reporting Entity
What has changed and why?
What has NOT changed?
Reporting Entity
Non-Reporting Entity

6. MICP and FIAR
Statement of Assurance
Risk Control Assessments
Risk Assessment of FIAR Programs

7. Understanding The Requirements
What are Phases of an Audit?
Discovery
Corrective Action
Evaluation
Assertion
Validation
Audit
What is the auditor looking for?
What is your Role?

8. Lessons Learned
Leadership Involvement*
Responding to Audit Request
Awareness

9. Best Practices
Conduct Sustainment Testing
Audit Preparation
Leadership Involvement*

10. Sustaining Audit Readiness
Training
Communication
Review of Internal Controls
Todays Focus:
Training
Communication
Internal Controls

11. Audit Readiness is not a new requirement…
Audit Readiness is not a new requirement…. This how business should have ALWAYS been done!

12. Resources and Questions:
DoD FIAR Guidance, April
DoD Management Internal Control Program
US Government Accountability Office DoD Financial Management