What did the 2018 National Defense Authorization Act do?

• A. Replaced the FIAR Plan with a requirement for a Financial Improvement and Audit Remediation Plan.
• B. Expanded CFO appointment to all agencies.
• C. Created a new financial reporting framework.
• D. Eliminated financial audits.

Answer: (A)

The key idea is that the 2018 National Defense Authorization Act changed how financial improvement is planned and tracked. It swapped the old FIAR Plan for a Financial Improvement and Audit Remediation Plan (FIARP), shifting the focus to a formal, milestone-driven approach aimed at achieving audit readiness. The FIARP requires clear milestones, defined responsibilities, and regular updates to Congress, ensuring progress is measured and accountable. This is why selecting replacing the FIAR Plan with a Financial Improvement and Audit Remediation Plan is the correct choice. The other options don’t reflect this specific change: the act did not expand CFO appointments across all agencies, create a new general financial reporting framework, or eliminate audits.