GAO Auditor Independence. The GAO reporting standards for performance audits statethat each report should include “recommendations for action to correct the problem areasand to improve operations.” For example, an audit of the Washington Metropolitan AreaTransit Authority found management decision deficiencies affecting some $230 millionin federal funds. The GAO auditors recommended that the transit authority could improveits management control over rail car procurement through better enforcement of contractrequirements and development of a master plan to test cars.Suppose the transit authority accepted and implemented specific recommendations madeby the GAO auditors.Required:Do you believe these events would be enough to impair the independence of the GAO auditors in a subsequent audit of the transit authority? Explain and tell whether it makes any difference to you that the same or different person performs both the first and subsequent audits
GAO Auditor Independence. The GAO reporting standards for performance audits state
that each report should include “recommendations for action to correct the problem areas
and to improve operations.” For example, an audit of the Washington Metropolitan Area
Transit Authority found management decision deficiencies affecting some $230 million
in federal funds. The GAO auditors recommended that the transit authority could improve
its management control over rail car procurement through better enforcement of contract
requirements and development of a master plan to test cars.
Suppose the transit authority accepted and implemented specific recommendations made
by the GAO auditors.
Required:
Do you believe these events would be enough to impair the independence of the GAO auditors in a subsequent audit of the transit authority? Explain and tell whether it makes any difference to you that the same or different person performs both the first and subsequent audits
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