2: Auditing

This chapter describes the nature of auditing by offices of inspector general (OIGs) as both a complementary and contrasting activity to investigations, described in the previous chapter. Auditing in its three forms, i.e., financial audits, attestation engagements, and performance audits, is described. The professional standards that guide each type of audits are outlined, focusing on independence and objectivity as hallmarks of OIG auditing. Guidance on the needs of an OIG’s audit division is provided along with practical tips to help ensure that auditing is at its most effective. Important elements are supportive leadership, careful hiring, and a system of supervision. Other suggestions include avoiding overly-lengthy audit reports and providing balance by reporting on both the positive and negative activities of the program being audited. Overall, this chapter demonstrates why auditing is critical to an OIG’s pursuit of government accountability and improving government performance.