What did the 2018 National Defense Authorization Act change regarding audit planning?

• A. Replaced FIAR plan with a Financial Improvement and Audit Remediation plan and transitioned from audit preparation to audit execution
• B. Extended FIAR plan indefinitely
• C. Created new audit standards
• D. Abolished audits for all agencies

Answer: (A)

The key idea is a shift from planning toward fixing and executing the audit process. The 2018 NDAA directed agencies to replace the existing FIAR plan with a Financial Improvement and Audit Remediation Plan, signaling a move from simply preparing for audits to actively remediating weaknesses and conducting the audit itself. This means the plan should lay out concrete remediation actions, milestones, and timelines aimed at achieving auditable financial statements and timely audit opinions, rather than just outlining steps for preparation.

This change does not involve extending the FIAR concept indefinitely, creating new audit standards, or abolishing audits. It refocuses the effort on tangible improvements and the actual path to audit readiness through remediation and execution.