NOTE TO MR. WILLIAM E. COLBY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B00552R001100110016-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 21, 2016
• Sequence Number: 16
• Content Type: NOTES

Approved For Release 2008/06/04: CIA-RDP85B00552RO01100110016-3
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
review was conducted in accordance with our proposal
dated October 9, 1973, and the provisions of contract
dated October 15, 1973.
Very truly yours,
Certified Public Accountants
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TABLE OF CONTENTS
Page
I. HIGHLIGHTS . . . . . . . 2
II. BACKGROUND . . . 3
III. SCOPE . . . . . . . . . . . . . 7
IV. SUMMARY . . . . . . . . . . . 11
V. NOTEWORTHY ORGANIZATIONAL AND OPERATIONAL ELEMENTS
OF THE CIA AUDIT STAFF . . . . 13
VI. OPPORTUNITIES FOR IMPROVING CIA AUDIT POI;ICIES
AND OPERATIONS . . . . . . 18
VII. COMMERCIAL SYSTEMS AND AUDIT DIVISION, OlFICE
OF FINANCE . . . . . . . . . . . 25
Appendices
I. TECHNICAL COMMENTS AND RECOMMENDATIONS FOR AUDIT
STAFF PRACTICE . . . . . . . . . . . 29
II. TECHNICAL COMMENTS AND RECOMMENDATIONS FOR CSAD
PRACTICE . . . . . . . . . . . 35
III, ROPOSAL, OCTOBER 9, 1973
IV J OCTOBER :: 5 , 197 3
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The results of our review of internal .uditing in the CIA
are pres4::_ed in detail in the following repDrt. Some of our
r?nnr-lncions 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-g2alified, well-trained,
professionally competent and, for th.- present, adequate
in numbers. _
to conform to overall federal policy, and to more effective
ruse the audit resources available, Agency management shoulc
encourage broader audit coverage of the economy, efficiency
and effectiveness with which its programs are carried out,
consider modifying its policy requiring annual financial au,
of all activities.
Agency management should capitalize )n a ready source of
management talent by considering upp,r level auditors for
management positions in operational Treas.
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 uneconomi, 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 som,what to provide more
useful information to procurement pe:-sonnel.
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