1.1.1: Financial Statement Audits

Contract with an independent public accounting (IPA) firm to annually audit the financial statements of the Board and the FFIEC.

Other Information:

The Board's and the FFIEC's annual financial statement audits. In 1988, the Board delegated to the OIG the authority to contract for the annual independent audit of the Board's financial statements, consistent with the IG Act's requirement that audit-like functions being performed by the Board be transferred to the OIG. Section 726 of the Gramm-Leach-Bliley Act of 1999 amended the Federal Reserve Act by adding section 11B, which mandated annual independent audits of the financial statements of each Federal Reserve Bank and of the Board, thus codifying the Board's long-standing practice that such audits be conducted. The OIG contracts with an independent public accounting (IPA) firm to annually audit the financial statements of the Board and the FFIEC (the Board performs the accounting function for the FFIEC). The OIG oversees the activities of the IPA firm to ensure compliance with generally accepted government auditing standards and certain Public Company Accounting Oversight Board auditing standards. The audit objective is to express an opinion on the Board's and the FFIEC's financial statements and obtain reasonable assurance about whether the financial statements are free of material misstatement. The auditors also assess the Board's and the FFIEC's compliance with certain laws and regulations. The IPA firm also expresses an opinion on the operating effectiveness of the Board's internal controls over financial reporting, in accordance with Government Auditing Standards and the Public Company Accounting Oversight Board Auditing Standard No. 5 based upon criteria established in the Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Stakeholder(s):

• Federal Reserve Board


• FFIEC

Indicator(s):

Indicator:1

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