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124885 1 (1984-08-08)

handle is hein.gao/gaobactip0001 and id is 1 raw text is: 



                 U.S. GENERAL ACCOUNTING OFFICE
                        WASHINGTON, D.C.

                                      FOR RELEASE ON  DELIVERY
    124885                            EXPECTED:   10:00 A.M.
                                      DATE:  AUGUST  8, 1984

                          STATEMENT OF
                        FREDERICK D. WOLF
            DIRECTOR OF THE ACCOUNTING AND FINANCIAL
                   MANAGEMENT DIVISION OF THE

                 U.S. GENERAL ACCOUNTING OFFICE

                               ON

               REASONS FOR THE DISPARITY BETWEEN
                  COSTS QUESTIONED BY AUDITORS
                  AND AMOUNTS AGENCIES DISALLOW

     Mr. Chairman and members of the Subcommittee, I am pleased

to appear before you today to discuss the results of our review

of certain aspects of the audit resolution process.  In

September 1982, you asked GAO to determine why  there is a dis-

parity between costs questioned by auditors and costs which

program officials disallow.

     Audit resolution has been a concern of ours for several

years.  We have issued 4 reports on the subject and have  testi-

fied at several hearings.  Due in large part to the efforts of

your Subcommittee, the process of resolving auditors' findings

has been improving over the years.  OMB has  issued .a revised

Circular A-50 on audit followup, and  in 1983 the Comptroller

General issued a standard on audit resolution in his Standards

For Internal Controls In The Federal Government.  As our most

recent review shows, however, additional  improvements should be

made.


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