Reference no: EM131624846

Question: GAO Auditor Independence. The GAO reporting standards for performance audits state that each report should include "recommendations for action to correct the problem areas and to improve operations." For example, an audit of the Washington Metropolitan Area Transit Authority found management decision deficiencies affecting some $230 million in federal funds. The GAO auditors recommended that the transit authority could improve its management control over railcar procurement through better enforcement of contract requirements and development of a master plan to test cars. Suppose the transit authority accepted and implemented specific recommendations made by the GAO auditors.

Required: Do you believe these events would be enough to impair the independence of the GAO auditors in a subsequent audit of the transit authority? Explain and tell whether it makes any difference to you that the same or different person performs both the first and subsequent audits.