Defense Primer: Understanding the Process for Auditing the Department of Defense [June 26, 2018] [open pdf - 334KB]
From the Document: "The Chief Financial Officers Act of 1990 (CFO Act, P.L. 101-576) requires annual audits of financial statements for federal agencies. Under the CFO Act, audits of federal agencies are the responsibility of the agency's inspector general (IG), but the IG may contract with one or more external auditors to perform the audit. While a number of Department of Defense (DOD) components already undergo annual audits (e.g., the U.S. Army Corps of Engineers, Defense Contract Audit Agency, and National Reconnaissance Office), DOD is undergoing its first-ever agency-wide financial audit in FY2018. Generally, the process and standards used to audit DOD are the same as those used to audit other federal agencies. Understanding why and how the DOD audit is conducted can help Congress evaluate the results and usefulness of the audit. DOD has contracted with external accounting firms to conduct its FY2018 audit. Different components within DOD are currently being audited by different firms. DOD expects to spend more than $340 million to conduct the FY2018 audit and to release the results in November 2018. It is to submit a full report to Congress by March 31, 2019. Thereafter, final audit reports are to be issued annually in November, covering the prior fiscal year."
CRS In Focus, IF10913