(TNS) — The Defense Department has spent nearly $1 billion on its first agencywide audit, which has revealed widespread problems with cybersecurity, Pentagon officials said Thursday.
“We failed the audit. But we never expected to pass it,” Deputy Secretary of Defense Patrick Shanahan told reporters at the Pentagon about the audit, which took nearly a year to complete.
Shanahan said the audit, which began in December 2017, revealed many issues including inventory accuracy and complying with cybersecurity discipline. The audit itself cost $413 million. But in addition, the Pentagon has spent $406 million on audit remediation and $153 million on financial system fixes.
With $2.7 trillion in assets and $2.6 trillion in liabilities, David Norquist, the Defense Department’s comptroller, said he thinks this is the largest financial statement audit ever undertaken.
About 1,200 auditors from nine independent public accounting firms and staffers from the department’s Office of the Inspector General