FINAL REPORT ON THE EXTERNAL PEER REVIEW OF THE DEFENSE INTELLIGENCE AGENCY, OFFICE OF INSPECTOR GENERAL, AUDIT STAFF (2107-0022-AS) ATTACHMENT A SYSTEM REVIEW REPORT

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06803487
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: March 8, 2023
• Document Release Date: December 17, 2019
• Case Number: F-2019-01011
• Publication Date: September 29, 2017

Approved for Release: 2019/12/11 C06803487
UNCLASSIFIED
Central Intelligence Agency
Office of Inspector General
Washington, D.C. 20505
29 SEP 2017
Final Report on the External Peer Review of
the Defense Intelligence Agency, Office of Inspector General,
Audit Staff (2107-0022-AS)
Attachment A
System Review Report
We have reviewed the system of quality control for the audit organization of the Defense
Intelligence Agency (DIA), Office of Inspector General (OIG) in effect for the three-year period
ended 30 April 2017. A system of quality control encompasses DIA OIG's organizational
structure and the policies adopted and procedures established to provide it with reasonable
assurance of conforming with Government Auditing Standards (GAS). The elements of quality
control are described in GAS. The DIA OIG is responsible for establishing and maintaining a
system of quality control that is designed to provide the Office with reasonable assurance that the
organization and its personnel comply with professional standards and applicable legal and
regulatory requirements in all material respects. Our responsibility is to express an opinion on
the design of the system of quality control and DIA OIG's compliance therewith based on our
review.
Our review was conducted in accordance with GAS and the Council of the Inspectors
General on Integrity and Efficiency (CIGIE) Guide for Conducting Peer Reviews of the Audit
Organizations of Federal Offices of Inspector General. During our review, we interviewed DIA
OIG personnel and obtained an understanding of the nature of the audit organization and the
design of the system of quality control sufficient to assess the risks implicit in its audit function.
Based on our assessments, we selected audits and administrative files to test for conformity with
professional standards and compliance with DIA OIG's system of quality control. The audits
selected represented a reasonable cross-section of DIA OIG's audit organization, with emphasis
on more current audits. Prior to concluding the peer review, we reassessed the adequacy of the
scope of the peer review procedures and met with DIA OIG management to discuss the results of
our review. We believe that the procedures we performed provide a reasonable basis for our
opinion.
In performing our review, we obtained an understanding of the system of quality control
for the DIA OIG audit organization. In addition, we tested compliance with DIA OIG's quality
control policies and procedures to the extent we considered appropriate. These tests covered the
application of DIA OIG's policies and procedures on selected audits. Our review was based on
selected tests; therefore, it would not necessarily detect all weaknesses in the system of quality
control or all instances of noncompliance with it. The enclosure to this report identifies the audits
that we reviewed.
There are inherent limitations in the effectiveness of any system of quality control, and,
therefore, noncompliance with the system may occur and not be detected. Projection of any
UNCLASSIFIED
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SUBJECT: External Peer Review Report
evaluation of a system of quality control to future periods is subject to the risk that the system
may become inadequate because of changes in conditions, or because the degree of compliance
with the policies or procedures may deteriorate.
In our opinion, the system of quality control for the audit organization of DIA OIG in
effect for the three-year period ended 30 April 2017 has been suitably designed and implemented
to provide DIA OIG with reasonable assurance of performing and reporting in conformity with
applicable professional standards in all material respects. Audit organizations can receive a rating
of pass, pass with deficiencies, or fail. DIA OIG has received an External Peer Review rating of
pass.
As is customary, we have issued a letter dated 29 September 2017 that sets forth findings
that were not considered to be of sufficient significance to affect our opinion expressed in this
report.
In addition to reviewing its system of quality control to ensure adherence with GAS, we
applied certain limited procedures in accordance with guidance established by the CIGIE related
to DIA OIG's monitoring of audits performed by Independent Public Accountants (IPAs) under
contract where the TPA served as the auditor. It should be noted that monitoring of audits
performed by IPAs is not an audit and, therefore, is not subject to the requirements of GAS. The
purpose of our limited procedures was to determine whether DIA OIG had controls to ensure
IPAs performed contracted work in accordance with professional standards. However, our
objective was not to express an opinion and, accordingly, we do not express an opinion on DIA
OIG's monitoring of work performed by IPAs.
Enclosure
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Enclosure
Scope and Methodology
We tested compliance with the DIA OIG audit organization's system of quality control to
the extent we considered appropriate. These tests included a review of three of five audit reports
issued and two audits terminated during the period 1 May 2014 through 30 April 2017. We also
reviewed the internal quality control reviews performed by DIA OIG.
In addition, we reviewed DIA OIG's monitoring of audits performed by IPAs where the
IPA served as the auditor during the period 1 October 2015 through 30 November 2016. During
the period, DIA OIG contracted for the audit of its agency's FY 2016 Financial Statements.
Reviewed Audits Performed by DIA OIG:
2013-100008-OA
30 March 2015
Audit of DIA's Management of IT Equipment and
Warehouse Inventory
2013-100010-OA
30 September 2015
Audit of DIA's Contract Surveillance
2015-100003-OA
11 August 2016
Audit of Other Direct Costs on DIA Contracts
2015-100001-OA
Terminated
20 November 2015
Audit of DIA's Management of Software Licenses
2015-100007-OA
Terminated
25 Februafy 2016
Audit of DIA's Travel Program
Reviewed Monitoring Files of DIA OIG for Contracted Audit:
itiiiiiit No..
Report Oa -
. ,ReportTitle..
2016-1001
15 November 2016
FY 2016 Financial Statements
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UNCLASSIFIED
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