Naval Audit Service: Effectiveness of Navy's Internal Audit Organization is Limited

摘要

The former Chairman, House Committee on Armed Services, Subcommittee on Readiness, requested that GAO review the effectiveness of the internal audit organizations within the Department of Defense. The Naval Audit Service (NAS) was selected for the first review because it did not appear to be reporting on significant issues, and the potential monetary benefits resulting from NAS audit recommendations were far below those of internal audit organizations in the Army and Air Force. The former Chairman requested that GAO review the effectiveness of NAS by examining its allocation of audit resources, report quality, and independence. GAO's examination of NAS resource allocation focused on the types of audits planned and conducted, audit hours devoted to various types of audits, and planned changes in the types of audits conducted. In reviewing audit report quality, GAO examined the adequacy and accuracy of audit evidence for findings, conclusions, and recommendations. To review NAS independence, GAO examined the relationship between NAS and the Office of the Assistant Secretary for Financial Management and the use of military officers in key NAS positions.