The first step in assessing an agency's internal control program's compliance with applicable laws and...

First Step in Assessing Compliance:

The first step in evaluating compliance is to develop acomprehensive inventoryof all applicable laws and regulations that the agency must follow.

This ensures the assessment process is thorough and based on a clear understanding of the regulatory environment.

Explanation of Answer Choices:

A. Review legal actions against the agency for noncompliance with laws and regulations: Important, but this comes later as part of identifying past compliance issues.

B. Contact the legislature to secure its views on any areas of regulatory noncompliance: Unnecessary for the initial step of compliance assessment.

C. Develop an inventory of the applicable laws and regulations: Correct. This is the foundational step to ensure all relevant requirements are included in the assessment.

D. Request a compliance review from the agency's chief legal officer: Incorrect. While legal advice may be helpful, it is not the starting point for compliance assessment.

References:

GAO,Standards for Internal Control in the Federal Government (Green Book).

OMB Circular A-123,Management’s Responsibility for Internal Control.