Department of Defense auditors muzzled

Several weeks ago I wrote about how government auditors had been intimidated and didn't follow standards. On the same topic, the Government Accountability Office released an audit today titled "Allegations That Certain Audits at Three Locations Did Not Meet Professional Standards Were Substantiated." That doesn't sound very newsworthy - didn't meet standards - ho-hum. Note: the DCAA is the Defense Contract Audit Agency (DCAA) under the Department of Defense and provides oversight for defense contracts.

But read this "Moreover, during our investigation, DCAA managers took actions against their staff at two locations that served to intimidate auditors and create an abusive work environment."

Further, "We found that enough evidence had been collected by the original supervisory auditor and senior auditor to support this opinion. However, after the contractor objected to draft findings and conclusions presented at the audit exit conference, the DCAA resident auditor replaced the original supervisory auditor assigned to this audit and threatened the senior auditor with personnel action if he did not change the summary workpaper and draft audit opinion. The second supervisory auditor issued the final report with an “adequate” opinion without documenting adequate support for the changes."

That is why following standards is so important.