Which CFO Act audit is required by the 1990 CFO Act?

Which CFO Act audit is required by the 1990 CFO Act?

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

Answer: (C)

The requirement is an annual financial statements audit of federal agencies. The 1990 CFO Act mandates that agencies prepare annual financial statements and have them audited by an independent auditor, with an opinion on whether the statements fairly present the agency’s financial position and results of operations. This focus is on the financial statements themselves (and the controls over their preparation), rather than on testing compliance, program performance, or a broad attestation of a specific subject. While internal controls are evaluated, the primary mandated audit is of the financial statements. That’s why the correct choice is financial.

The requirement is an annual financial statements audit of federal agencies. The 1990 CFO Act mandates that agencies prepare annual financial statements and have them audited by an independent auditor, with an opinion on whether the statements fairly present the agency’s financial position and results of operations. This focus is on the financial statements themselves (and the controls over their preparation), rather than on testing compliance, program performance, or a broad attestation of a specific subject. While internal controls are evaluated, the primary mandated audit is of the financial statements. That’s why the correct choice is financial.