Financial Audit: IRS's Fiscal Years 2011 and 2010 Financial Statements

In accordance with authority granted by the Chief Financial Officers Act of 1990, GAO annually audits the financial statements of the Internal Revenue Service (IRS) to determine whether (1) the financial statements are fairly presented and (2) IRS management maintained effective internal control over financial reporting. GAO also tests IRS's compliance with selected provisions of significant laws and regulations and its financial systems' compliance with the Federal Financial Management Improvement Act of 1996 (FFMIA). IRS's tax collection activities are significant to overall federal receipts, and its financial management is of substantial interest to Congress..