Which act guides the DoD to publicly report its internal control evaluations?

Which act guides the DoD to publicly report its internal control evaluations?

• A. FMFIA
• B. DoDI 5010.40
• C. OMB Circular A-123
• D. GAO Standards

Answer: (A)

The obligation to publicly report DoD’s internal control evaluations comes from the Federal Managers’ Financial Integrity Act. This law requires agencies to annually evaluate their internal controls and financial management systems and to report the results publicly to the President and Congress. That public reporting requirement is the reason DoD discloses its internal control evaluations. Other instruments like DoD Instruction 5010.40 provide the procedures for running the internal control program, OMB Circular A-123 offers guidance on how controls should be assessed and tested, and GAO Standards set the framework for evaluating controls. But the statutory mandate to publicly report stems from FMFIA.

The obligation to publicly report DoD’s internal control evaluations comes from the Federal Managers’ Financial Integrity Act. This law requires agencies to annually evaluate their internal controls and financial management systems and to report the results publicly to the President and Congress. That public reporting requirement is the reason DoD discloses its internal control evaluations. Other instruments like DoD Instruction 5010.40 provide the procedures for running the internal control program, OMB Circular A-123 offers guidance on how controls should be assessed and tested, and GAO Standards set the framework for evaluating controls. But the statutory mandate to publicly report stems from FMFIA.