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Internal Auditing in the Departments of the Air Force and Navy

Published: Feb 07, 1978. Publicly Released: Feb 07, 1978.
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Highlights

A review of the Air Force Audit Agency (AFAA) indicated that the benefits of AFAA service outweighed the costs. During fiscal year 1976, AFAA issued over 5,400 audit reports which identified $242 million in potential savings and contained recommendations for lowering costs and increasing efficiency. Improvements are still needed to keep management better informed. Recommendations were made to raise the audit function to a higher level in the Air Force's organization, remove restrictions on the scope of its audit work, appoint civilians to the position of Auditor General and most internal audit staff positions, and use the audit staff more effectively. The Naval Audit Service has also been cost-effective, with reported potential savings of $177 million and an operating cost of about $13 million. Most of the problems identified in the Naval Audit Service and recommendations to correct them were similar to those for AFAA. An additional problem noted was that the Naval Audit Service's follow-up system does not ensure that all deficiencies identified by internal audits are promptly corrected. The Secretary of Defense should direct the Secretary of the Navy to make more follow-up reviews on audit findings and periodically to provide management with summaries of evaluations.

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