Auditability: An Analysis of the DON’s Financial Systematic Issues
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The purpose of this research is to identify financial systematic issues surrounding the Department of the Navy’s lack of auditability and its inability to obtain an unqualified opinion. This study explores possible reasons the DoN failed the audit, using the process and internal controls components of the auditability triangle. The authors review audit reports, DoN financial reports, accounting error reports, subject matter expert interviews, and reported financial systematic issues that contribute to audit issues. The research findings identified issues related to audit readiness, feeder systems and processes, and internal controls. Research findings show lack of accuracy and completeness of the DoN's financial statements. The findings indicate that DoN should consolidate and standardize its financial systems, feeder systems, and processes across the organization. The findings also indicate that DoN lacks reliable, effective, and compliant internal controls. Based on these findings, recommendations are provided for further focus on auditability, feeder systems and processes, and internal controls to improve audit readiness across DoN.
RightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
NPS Report NumberNPS-FM-20-020.pdf
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