Efficiency and Effectiveness of OCA Audits of Compliance With Uniform Systems of Accounts

Gao ID: 120958 March 22, 1983

GAO reviewed the Federal Energy Regulatory Commission's (FERC) Office of the Chief Accountant (OCA) audits of regulated firms' compliance with the FERC Uniform Systems of Accounts.

GAO found that OCA needs to more thoroughly document its reliance on audit work performed by independent certified public accountants. Indications showed that, without a detailed record of such reliance, reduced OCA financial and compliance work resulted because auditors had indiscriminately duplicated the accountants' work. Further, duplication precluded FERC from realizing the benefits of obtaining external accountants to certify that regulated firms' financial statements conform with the Uniform Systems of Accounts. GAO concluded that the number of OCA financial audits of regulated firms could be reduced without loss of effectiveness in meeting its responsibilities.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: F. Kevin Boland Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 275-8545


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