LETTER TO MR. WILLIAM E. COLBY FROM CERTIFIED PUBLIC ACCOUNTANTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R000800140005-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 13
• Document Creation Date: December 12, 2016
• Document Release Date: December 18, 2001
• Sequence Number: 5
• Content Type: LETTER

Approved For Release 2002/01/10 : CIA-RDP77M00144R000800140005-7
Mr. William E. Colby
Director, Central Intelligence
Washington, D.C. 20505
Dear Mr. Colby:
We are pleased to submit to you a report of our
review of the Agency's internal audit functions. Our
revie ~ was conducted in accordance with our proposal
dated October 9, 1973, and the provisions of contract
XG-3882(1201-AS-5)74P, dated October 15, 1973.
Very truly yours,
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- Certified Public Accountants
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TABLE OF CONTENTS
I. HIGHLIGHTS . . . . . . . . . 2
IV. SUMMARY . . . . . . . 11
V. NOTEWORTHY ORGANIZATIONAL AND OPERATIONAL ELEMENTS
OF THE CIA AUDIT STAFF . . . . . . 13
VI. OPPORTUNITIES FOR IMPROVING CIA AUDIT POLICIES
AND OPERATIONS . . . . . . . . . 18
VII. COMMERCIAL SYSTEMS AND AUDIT DIVISION, OFFICE
OF FINANCE . . . . . . . . . . . 25
Appendices
1. TECHNICAL COMMENTS AND RECOMMENDATIONS FOR AUDIT
STAFF PRACTICE . . . .
II. TECHNICAL COMMENTS AND RECOMMENDATIONS FOR CSAD
PRACTICE . .. . . . . . . . . . . 35
III. TOUCHE ROSS AND CO. PROPOSAL, OCTOBER 9, 1973
IV. CONTRACT XG-3882(1201-AS-5)74P, OCTOBER 15, 1973
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SW *mW
The results of our review of internal auditing in the CIA
are presented in detail in the following report. Some of our
conclusions include:
the overall internal audit effort in CIA is adequate
to safeguard Agency assets and ensure administrative
compliance with laws and regulations.
Agency auditors are generally well-qualified, well-trained,
professionally competent and, for the present, adequate
in numbers.
ILLEGIB - to conform to overall federal policy, and to more effectively
use the audit resources available, Agency management should
encourage broader audit coverage of the economy, efficiency
and effectiveness with which its programs are carried out, ani
consider modifying its policy requiring annual financial audi'
of all activities.
Agency management should capitalize on a ready.source, of
management talent by considering upper level auditors for
management positions in operational areas.
- articulated quality assurance policies, would help to
maintain high standards for audit performance.
continued operation of the Audit Staff covert public
accounting firm may become uneconomic if changes are made
in the Agency audit policy.
the-Commercial Systems and Audit Division may be able to
shift the emphasis of its audits somewhat to provide more
useful information to procurement personnel.
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B ACKGI\CI a'iD
Two related fac Lois di. reci:ly affect the charac i'er of the
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