ABSTRACT

The Inspector General (IG) Act was passed on October 12, 1978, establishing Offices of Inspector General in 12 federal departments and agencies. The act created independent and objective units which provide leadership and recommend policy for the promotion of economy, efficiency, and effectiveness and the prevention and detection of fraud and abuse in federal programs and operations. It was a series of scandals and abuses within government as Well as a renewed emphasis on prevention and detection that led to congressional realization of the need for an IG concept within the federal government and subsequent passage of the act. One of the act's mandates is that IGs advise agency heads with respect to all matters relating to the promotion of economy, efficiency and effectiveness, and the prevention and detection of fraud and abuse. With the advent of the IG Act came a change in the role of auditors and investigators, particularly with regard to their prevention and detection roles.