The CFO Act of 1990 requires which type of audit?

The CFO Act of 1990 requires which type of audit?

• A. Compliance
• B. Financial
• C. Attestation
• D. Performance

Answer: (B)

The key idea is that the CFO Act of 1990 requires annual financial statement audits for federal agencies. This act created the position of Chief Financial Officers and mandates that major agencies have their financial statements examined by an independent auditor each year. The purpose is to provide an objective assessment of whether the agency’s financial statements are presented fairly and in accordance with the applicable accounting framework, offering reliable information about the government’s financial position and results of operations. While other audit types exist—such as checks on regulatory compliance, broader attestation engagements, or evaluations of program performance—the act specifically focuses on the annual financial statement audit to enhance the credibility of federal financial reporting.

The key idea is that the CFO Act of 1990 requires annual financial statement audits for federal agencies. This act created the position of Chief Financial Officers and mandates that major agencies have their financial statements examined by an independent auditor each year. The purpose is to provide an objective assessment of whether the agency’s financial statements are presented fairly and in accordance with the applicable accounting framework, offering reliable information about the government’s financial position and results of operations. While other audit types exist—such as checks on regulatory compliance, broader attestation engagements, or evaluations of program performance—the act specifically focuses on the annual financial statement audit to enhance the credibility of federal financial reporting.