Summary: The General Accounting Office has reviewed the activity of the Audit Division of the General Services Administration (GSA), Our review was directed primarily toward evaluating the effectiveness with which the Audit Division is directing the efforts of the area audit offices. Evaluations of the manner in which the area audit offices execute audit assignments are made from time to time in connection with our reviews of GSA's operations and financial transactions and become the subject of separate reporting.
GSA's basic policy requires that the internal audit program be an integral part of total agency management and assist all levels of management in achieving the most efficient administration, As of October 1, 1966, the Audit Division was staffed with 18 auditors at the central office in Washington, D.C,, and 44 at the five area audit offices; 73 auditors were authorized by the approved budget for fiscal year 1967, Although the Audit Division does not report directly to the Administrator of General Services, we found that its authority is broad enough to give the internal auditors a great degree of independence in the selection of areas for audit and in the scope of their work; we found indications that this independence was, in fact, exercised by the Audit Division. Also, our review showed that: audit coverage of operations and financial transactions is planned in advance; audit work, such as examination of inventories, payrolls, receipts, and disbursements, is scheduled in all regions on a cyclical basis; audit findings are discussed with cognizant operating personnel; reports are submitted to high-level management officials to ensure that authoritative consideration will be given to audit findings and recommendations; and audit findings and recommendations are followed up in order to appraise the adequacy of corrective actions taken. There are, however a few areas of GSA's internal audit program which we believe can be improved.
