Audits are a necessary evil - they have to be conducted, and they can be a drain on resources that could be used for production. But audits can be used to enhance productivity, when designed properly.
Federal agencies must submit reports to Congress, to the Office of Management and Budget, or to oversight committees on finances and operations. For example, the Improper Payments Act requires each agency to test to ensure that expenditures by agencies are accurate and errors have a minimal impact on year-end financial statements.
We work with agencies and auditors to help design the audit process, select valid samples, and extrapolate from the sample(s) to the full population to get an exact measurement of financial measures or to search out fraud, waste, or system abuse.Â
But we do more - we design systems that incorporate reporting on other aspects of the financial process at no additional cost. If the audit can be used to measure performance, find systematic errors, and lead to managerial reporting to encourage better oversight, why can't the audit be used for purposes that move an agency forward? A report card isn't enough - a plan that supports efficiency in management is a much better goal and use of the same resources.
We redesigned the audit sample, cutting the sample by a factor of five (sample was one-fifth the size it was previously) and making it more accurate!
We redesigned the annual audit of payments to retirees and survivors in the Federal retirement systems.
