QUESTIONS REGARDING THE HISTORY OF THE AUDIT STAFF 1953-1956

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00022R000400160002-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: September 6, 2000
• Sequence Number: 2
• Content Type: MISC

Approved For Release 2000/09/1.4 i -DP84-00022ROD0400160002-2
QUESTIONS REGARDING THE HISTORY OF THE AUDIT STAFF 1953-1956
1. What were the consequences of the organizational changes made in the
position of the Audit Staff during the period?
Firing the period field Audit Branches were developed in the Far East,
in Europe, and in the Middle East. These Branches perform audits at
the site and as a result of those audits have found many things need-
ing correction which would not have been discovered through the proce-
dures previously in effect whereby accounts were audited on the basis
of records submitted to Headquarters.
2. How did the career development program affect the Audit Staff?
Was a policy of rotation adopted?
25X1A
Rotation has been an existing policy of the Audit Staff since the
overseas program was adopted. There has been some difficulty in
applying it due to the fact that health or family conditions do not
permit of its full application. This has rendered it impracticable
to apply a complete rotation policy. However, it is not believed
that the audit program has suffered therefrom.
3. How did relations develop with the Office of Logistics, particularly
with reference to property control?
Relations with the Office of Logistics have been excellent during the
period and recommendations of the Audit Staff for improvement in
procedures and their application have been cheerfully adopted.
1. What were the accomplishments achieved in the audit of proprietary
projects? What cover arrangements were developed?
The Audit Staff has been able to maintain a current program of
auditing proprietary projects. This involves the audit of all pro-
prietary projects once each year. To accomplish this it has been
necessary to employ public accounting firms in a limited number of
cases where the cover division or the interested operating division
was of the opinion that it was inadvisable, for cover reasons, for
the Audit Staff personnel to make the audit, Where public accountants
Approved Fpr,Release 2000/09/14: CW- 84-00022R000400160002-2
000200
 ; rs.
Approved For Release 2000/09/14 CtA P84-00022R000400160002-2
were employed and it was necessary to make them witting, the auditors
used by the audit companies on the particular projects were cleared
by the office of Security.
5. What were the audit developments with regard to the large subsidy
projects? To what extent was it possible to use unwitting public
accountants?
In a few cases the Audit Staff has been able to use ilWNionnel
for the audit of subsidy projects and in other cases
accountants have been used. In view of the nature of the subsidy
projects it is extremely difficult to perform a sound audit of their
operations. The Audit Staff must be guided in this matter by the
judgment of the operating division and the cover division as to when
it is practical from a cover standpoint to audit this type of project.
6. What were the developments in the audit of financial accounts at
Headquarters?
The audit of financial accounts at Headquarters has been maintained
on a current basis by the Audit Staff and changes in procedures and
corrections of irregularities found have been cheerfully done by the
Comptroller.
7. What were the developments in the audit of industrial contracts?
The detail audit of industrial contracts is performed by the Industrial
Contracts Audit Branch of the Comptroller's office. As such audits
apply prior to payment of the accounts, the Audit Staff does review
in a general way the work of the Industrial Contracts Audit Branch
and on occasion reviews in detail specific audits. This procedure is
similar to that followed by the General Accounting office in its audit
of other departments of the Goverment and obviates duplication of
effort.
8. What were the accomplishments during the period of the field audit
unit? What was done about the audit of small field stations?
25X1A
Approved For Release 2000/09/14: CIA-RDP84-00022R000400160002-2
 Approved For Release 2000/09/14 AAf DP84-00022R'00400160002-2
9. What were the trends in the work load of the Audit Staff during
the period?
The work of the Audit Staff has been continuing upward due to an
increase in the number of stations and projects developed within
the Agency and the fact that with the improved training and enlarge-
ment of the Audit Staff it has been practicable to extend the audit
into a more comprehensive type than it has been practicable prior
to this period.
ILLEGIB
Approved For Release 2000/09/14: CIA-RDP84-00022R000400160002-2
 Approved For Release 2000/09/14: A-RDP84-00022R000400160002-2
F
ILLEGIB
Approved For Release 2000/09/14: CIA-RDP84(8,9j,Qp0400160002-2