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

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

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

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.

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

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

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?

Lessons Learned Leadership Involvement* Responding to Audit Request Awareness

Best Practices Conduct Sustainment Testing Audit Preparation Leadership Involvement*

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

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

Resources and Questions: DoD FIAR Guidance, April 2015 http://comptroller.defense.gov/fiar/fiarguidance.aspx DoD Management Internal Control Program http://comptroller.defense.gov/fiar/micp.aspx US Government Accountability Office DoD Financial Management http://www.gao.gov/key_issues/dod_financial_management/issue_summary