Beyond the Audit: A Strategic Guide to Audit Remediation in Government Contracting 

In the ever-evolving landscape of federal regulations, Department of Defense (DoD) agencies confront the critical task of meeting compliance standards and proving their adherence through effective audit response and remediation.

Hands On.
Audit Remediation.

In the ever-evolving landscape of federal regulations, Department of Defense (DoD) agencies confront the critical task of meeting compliance standards and proving their adherence through effective audit response and remediation.  

With continuous pressure for agencies to achieve the desired unqualified audit opinion, Andrew Morgan Consulting (AMC) supplies hands-on innovative and strategic audit remediation. Our staff come to the table with extensive knowledge of the audit lifecycle, Generally Accepted Accounting Principles (GAAP), Generally Accepted Government Auditing Standards (GAGAS), Financial Improvement and Audit Readiness (FIAR), and industry best practices. 

AMC Delivers Proactive and Innovative Strategies for Audit Remediation

Evaluation

The first phase of AMC’s approach to audit remediation is Evaluation. This phase begins with a comprehensive analysis of the Notice of Findings and Recommendation (NFRs) provided by the independent public accountants (IPAs). Utilizing root cause analyses to identify underlying issues and risks allows management to develop targeted remediation strategies. Part of the Evaluation Phase is effectively prioritizing remediation efforts based on severity of findings and potential impacts. Prioritization is a key strategic approach to ensure that critical issues are addressed. After completing our Evaluation Phase, we advise our clients in developing Corrective Action Plans and tracking implementation.

Advising

The first activity in our Advising Phase is to foster cross-functional collaboration through effective communication to stakeholders and guaranteeing a coordinated approach. With cross-functional collaboration, defining the organization roles and responsibilities will ensure increased accountability for involved parties. Once clear roles and responsibilities are defined, we collaborate with the client to formulate effective Corrective Action Plans (CAPs) to address each NFR and identified risk. Each CAP includes detailed and actionable milestones for assigned milestone owners to complete. The established cross-functional collaboration allows for the milestone owners to be easily assigned and held accountable to established due dates. AMC’s ultimate goal in the Advising Phase is to build effective and sustainable corrective actions to fully remediate findings and increase stakeholder accountability.

Innovation

The Innovation Phase looks to bring leading technology solutions to our clients that automate processes, identifies actionable intelligence, and lowers the cost of compliance. The innovative methods can be leveraged throughout the audit remediation lifecycle, but we prioritize innovation heavily during development and implementation of the CAPs. This transformational change can be supported by leveraging our Data Analytics and Process Automation solutions.

  • Data Analytics – AMC utilizes strategic techniques and thoughts to develop effective solutions to provide advance insights to key stakeholders and enabling better decisions while optimizing performance. 
  • Robotic Process Automation (RPA) – AMC develops automated tools and methods for findings related to manual processes. The automation of manual processes increases the accuracy and efficiency of reporting and provides easily accessible data for decision makers.  

Implementation

During our Implementation Phase of remediation efforts, we look to seamlessly implement audit remediation activities developed in the Advising and Innovation Phases and leverage industry best practices. The first step in the phase is ensuring necessary resources are allocated to remediating each and every finding. This includes identifying process personnel and leveraging innovative technology to achieve the desired CAP outcomes. In addition to allocating resources, AMC invests in training audit remediation key personnel in leading practices and activities identified in the Advising and Innovation Phases. The training varies from conducting group workshops promoting collaboration while informing to individual process owner deep dive sessions analyzing process improvement and compliance. As part of the implementation, our team works with the client and involved parties to ensure that the process updates, compliance, and CAPs are fully documented. As a result, this will efficiently demonstrate proper actions are taken to remediate NFRs and support audit readiness for following years.

Monitoring

During the Monitoring Phase, AMC establishes a robust monitoring system that aligns with the objectives of the CAPs. The system allows for real-time tracking of progress, deadlines, and key performance indicators (KPIs). Our team conducts regular progress reviews to assess the progress of identified milestones for each CAP. These reviews include meetings to discuss achievements, challenges, needed resources, and potential adjustments to the action plans. Once the corrective actions are fully implemented, we provide continuous effectiveness verifications and validations. These verifications and validations may include internal audits, sample testing or compliance assessments to ensure the identified issues have been adequately addressed. Similar to the Implementation Phase, we maintain thorough  documentation of the monitoring process, including progress reports, changes made, and any challenges encountered. The well-documented information serves as a valuable resource for future audits and assessments.  

After corrective actions are successfully implemented and verified, we prepare comprehensive closure reports summarizing the monitoring process, outcomes achieved, and lessons learned. To determine lessons learned, we conduct an analysis of the Monitoring Phase to identify what worked well and what didn’t work. This information is used to refine future audit remediation strategies and improve overall organizational resilience. 

In Closing

Audit remediation is a complex but necessary journey towards organizational resilience, continuous improvement, and regulatory compliance. By approaching remediation with strategic planning, cross-functional collaboration and accountability, and cutting-edge innovative technologies, AMC can help federal organizations not only address audit findings but also fortify their processes against future challenges. Effective audit remediation is not just about meeting regulatory compliance standards; it’s about building a stronger foundation for the future!!

Thomas Eng

Thomas Eng

Contact AMC Audit Lead, Thomas Eng
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