1. GAO Audit of State
Organizations in the United
States of America
Ivan Semenushkin
Group 49-УГиРФ
2. Contents
GAO at a glance
FAM Methodology
overview
Phases of FAM Audit
3. GAO at a glance
The Government Agency head: David
Accountability Office M. Walker
(GAO) is the audit, Comptroller General of the
evaluation, and United States (Appointed
investigative arm of the October 1998; term of
United States Congress. It office expires in October
is located in the 2013.)
Legislative branch of the Staffing level: 3,120
United States employees
Government.
Budget : $488.6 million
4. FAM Methodology
Financial Audit Manual (FAM) relates to relevant
professional auditing and attestation standards
providing decision makers (financial statement
users) with assurance that the financial
statements are reliable reporting deficiencies in
internal control
providing an opinion on the effectiveness of
internal control
reporting on noncompliance with laws and
regulations
5. Four Phases of FAM Audit
Planning
Internal Control
Testing
Reporting
6. Main Objectives of Planning Phase
gaining an understanding of the entity to
be audited
understanding its environment (including
internal control)
identifying significant areas for audit
designing effective and efficient audit
procedures
7. Internal Control Phase
understanding
evaluating
testing internal control
To evaluate internal control, the auditor identifies
and understands the relevant controls and tests
their effectiveness. Where the auditor
determines controls to be effective, the extent of
substantive testing can be reduced.
8. Testing Phase
obtaining reasonable assurance about
whether the financial statements are free
of material misstatements
determining whether the entity complied
with significant provisions of applicable
laws and regulations
assessing the effectiveness of internal
control through testing controls in
coordination with other tests
9. Reporting Phase
developing the auditor's report on the
entity’s annual financial statements and
supplementary information, its internal
control, and its compliance with laws and
regulations
