United States General Accounting Office GAO February 2000 Report to the Secretary of the Treasury_part4 doc

B-282441
Page 32 GAO/AIMD-00-76 IRS’ Fiscal Year 1999 Financial Statements
statement of net cost starting with plans and reports for fiscal year 1999.
However, we found that IRS cannot report reliable cost-based performance
measures relating to its various programs in accordance with the
Government Performance and Results Act of 1993.
Objectives, Scope, and
Methodology
Management is responsible for (1) preparing the annual financial
statements in conformity with generally accepted accounting principles,
(2) establishing, maintaining, and assessing internal controls to provide
reasonable assurance that the broad control objectives of FIA are met, and
(3) complying with applicable laws and regulations and FFMIA
requirements.
We are responsible for obtaining reasonable assurance about whether
(1) the financial statements are presented fairly, in all material respects, in
conformity with generally accepted accounting principles and (2) internal
accounting and financial reporting controls are effectively designed and
operating to achieve the following control objectives established under FIA
and OMB Circular A-123,
Management Accountability and Control
:
• Financial reporting—transactions are properly recorded, processed,
and summarized to permit the preparation of financial statements in
conformity with generally accepted accounting principles and
safeguarding of assets against loss from unauthorized acquisition, use,
and disposition.
• Compliance with laws and regulations—transactions are executed in
accordance with laws governing the use of budget authority and with
other laws and regulations that could have a direct and material effect
on the financial statements and any other applicable laws, regulations,

and governmentwide policies identified by OMB in Bulletin 98-08,
appendix C, as amended.
We are also responsible for testing compliance with selected provisions of
laws and regulations that have a direct and material effect on the
statements; with laws for which OMB Bulletin 98-08, as amended, requires
testing; and with FFMIA requirements. Additionally, we are responsible for
performing limited procedures with respect to certain other information
appearing in these annual financial statements.
Except as discussed above, in order to fulfill these responsibilities, we
(1) examined, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, (2) assessed the accounting
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