What did the 2010 National Defense Authorization Act mandate regarding audit readiness?

What did the 2010 National Defense Authorization Act mandate regarding audit readiness?

• A. FIAR Plan with a goal of being audit-ready by September 30, 2017
• B. A transition to audit execution immediately
• C. Abolition of the FIAR plan
• D. Extension of audit readiness indefinitely

Answer: (A)

The main idea is that the Defense Department must fix its financial management through a formal plan with a concrete deadline for being auditable. The 2010 NDAA required the Financial Improvement and Audit Readiness plan (FIAR Plan) and set a target date of September 30, 2017 to achieve audit readiness for DoD’s consolidated financial statements. This means building the systems, controls, and processes needed to produce reliable, auditable financial information and to support an audit opinion. It isn’t about starting audits immediately, abolishing the plan, or extending readiness indefinitely—the act establishes a structured plan with a specific end date.

The main idea is that the Defense Department must fix its financial management through a formal plan with a concrete deadline for being auditable. The 2010 NDAA required the Financial Improvement and Audit Readiness plan (FIAR Plan) and set a target date of September 30, 2017 to achieve audit readiness for DoD’s consolidated financial statements. This means building the systems, controls, and processes needed to produce reliable, auditable financial information and to support an audit opinion. It isn’t about starting audits immediately, abolishing the plan, or extending readiness indefinitely—the act establishes a structured plan with a specific end date.