THE UNITED STATES OF AMERICA 1775
Headquarters
Department of the Army
Washington, DC
14 August 2023

*Army Regulation 36-2

Effective 14 September 2023

Audit

Audit Services in the Department of the Army

By Order of the Secretary of the Army:

RANDY A. GEORGE

General, Acting United States Army

Chief of Staff

MARK F. AVERILL

Administrative Assistant to the

Secretary of the Army

History. This publication is a major revision. The portions affected by this major revision are listed in the summary of change.

Authorities. The authorities for this regulation are 10 USCUSCUnited States Code 7013, 10 USCUSCUnited States Code 7014, DoDI 7600.02, and DoD Manual 7600.07.

Applicability. This regulation applies to the Regular Army, the Army National Guard/National Guard of the United States, and the U.S. Army Reserve, unless otherwise stated.

Proponent and exception authority. The proponent of this regulation is The Army Auditor General. The proponent has the authority to approve exceptions or waivers to this regulation that are consistent with controlling law and regulations. The proponent may delegate this approval authority, in writing, to a division chief within the proponent agency or its direct reporting unit or field operating agency, in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulation by providing justification that includes a full analysis of the expected benefits and must include formal review by the activity's senior legal officer. All waiver requests will be endorsed by the commander or senior leader of the requesting activity and forwarded through his or her higher headquarters to the policy proponent. Refer to AR 25-30 for specific requirements.

Army internal control process. This regulation contains internal control provisions in accordance with AR 11-2 and identifies key internal controls that must be evaluated (see appendix B).

Suggested improvements. Users are invited to send comments and suggested improvements on DA FormDA FormDepartment of the Army form 2028 (Recommended Changes to Publications and Blank Forms) directly to the Office of The Army Auditor General (SAAG-ZAZ), 6000 6th Street, Building 1464, Fort Belvoir, VA 22060-5609 or with this email address, usarmy.pentagon.hqda-aaa.mbx.acfo@army.mil.

Distribution. This publication is available in electronic media only and is intended for the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve.

*This regulation supersedes AR 36-2, dated 30 October 2015.

AR 36-2 • 14 August 2023

UNCLASSIFIED

Addressee An activity to which an audit organization directs recommendations in audit reports or oversight or man- agement responsibilities. The activity may also be responsible for taking or directing any corrective ac- tions to implement recommendations.

Attestation engagements Covers a broad range of financial or nonfinancial objectives about the subject matter or assertion depend- ing on the users’ needs. An attestation engagement can provide one of three levels of service as defined by the American Institute of Certified Public Accountants, namely an examination engagement, a review engagement, or an agreed-upon procedures engagement. An examination, review, or agreed-upon pro- cedures engagement conducted under the GAGAS attestation standards related to subject matter or an assertion that is the responsibility of another party.

Audit client Audit client refers to any entity included in the audit scope.

Generally accepted government auditing standards Standards and guidance issued by the Comptroller General of the United States for use by government auditors to ensure that they maintain competence, integrity, and independence in planning, conducting, and reporting their work. Commonly referred to as GAGAS, the Comptroller General of the United States publishes these standards in the publication, Government Auditing Standards, which is commonly re- ferred to as the “Yellow Book.”

Internal audit A function that helps DoD management attain its goals by providing information, analyses, assessments, and recommendations pertinent to DoD management duties and objectives. The internal audit function supports the SECARMYSECARMYSecretary of the Army. Auditors independently and objectively analyze, review, and evaluate existing procedures, controls, and performance relating to activities, programs, systems, and functions; auditors constructively present conditions, conclusions, and recommendations so as to stimulate or encourage corrective action.

Office of Primary Responsibility The HQDA principal official with primary responsibility for the program, process, or policy being audited, or the official with the primary interest in the audit, who is responsible for providing the official Army posi- tion in an audit.

Official Army position The Army’s decision to accept or reject any finding, conclusion, or recommendation made in an audit re- port. The official Army position resolves disagreements between audited organizations and USAAA and establishes mandatory, reportable corrective actions for responsible organizations.

Potential monetary benefits Potential monetary benefits consist of questioned costs and funds put to better use resulting from audit findings.

Undecided recommendations A DoD audit organization’s final recommendations on which the responsible organization hasn’t yet com- mented or has expressed nonconcurrence without the audit organization’s agreement. Undecided recom- mendations also arise when management and the DoD audit organization are attempting to resolve disa- greements at lower levels or the disagreement is submitted to a senior official for decision.

Unimplemented recommendations The actions that USAAA and the OPR agreed were necessary to correct deficiencies addressed in the recommendations but haven’t been completed by the responsible unit, activity, or organization.