What did the 2010 National Defense Authorization Act mandate?

What did the 2010 National Defense Authorization Act mandate?

• A. Mandated the development of the FIAR (Financial Improvement & Audit Readiness) Plan.
• B. Created a CFO in 24 agencies.
• C. Required DoD to overhaul its financial systems.
• D. Established new GAAP standards.

Answer: (A)

The question focuses on what the 2010 National Defense Authorization Act required regarding financial management. It mandated the development of a Financial Improvement and Audit Readiness plan. FIAR is a structured roadmap that aims to strengthen DoD’s internal controls, fix material weaknesses, and guide the department toward auditable financial statements. The act requires concrete milestones, corrective actions, and regular progress reporting to Congress to demonstrate progress over time. Other options don’t fit this specific mandate: the act did not create CFOs in 24 agencies, require a broad overhaul of DoD financial systems, or establish new GAAP standards.

The question focuses on what the 2010 National Defense Authorization Act required regarding financial management. It mandated the development of a Financial Improvement and Audit Readiness plan. FIAR is a structured roadmap that aims to strengthen DoD’s internal controls, fix material weaknesses, and guide the department toward auditable financial statements. The act requires concrete milestones, corrective actions, and regular progress reporting to Congress to demonstrate progress over time. Other options don’t fit this specific mandate: the act did not create CFOs in 24 agencies, require a broad overhaul of DoD financial systems, or establish new GAAP standards.