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Department of Defense financial audits

Facing audit remediation challenges in federal government

Leveraging innovative and digital technologies through a sustainable and organic roadmap can further accelerate the path to auditability and put leadership back in the driver’s seat to transform business operations.

Audit remediation challenges

As Department of Defense (DoD) agencies undergo their fourth consecutive year of financial statement audits, agency leaders are faced with more challenges than ever before. COVID-19 has altered audit approaches for the foreseeable future, while resource constraints, shifting regulatory environments, and demands for fiscal accountability continue to test even the most adept financial managers.

Despite these challenges, some audit success has been achieved as evidenced by the Military Retirement Fund, United States (US) Army Corp of Engineers, Defense Commissary Agency, Defense Health Agency (DHA)- Contract Resource Management (CRM), DFAS Working Capital Fund, Defense Contract Audit Agency and Defense Information System Agency (DISA) Working Capital Fund all receiving unmodified audit opinions in Fiscal Year (FY) 2020. Many DoD agencies, however, must continue to show progress and look for opportunities to accelerate toward their audibility goals, all while staying laser-focused on the mission.

Looking Ahead: The future of audit remediation

A fresh perspective with demonstrated results

Deloitte has assisted multiple agencies in their efforts to achieve unmodified audit opinions and understands the complex challenges leaders typically face when remediating material weaknesses. Financial managers are often left in a reactive state, responding to findings, rather than proactively driving improvements to business operations. Deloitte’s audit remediation approach puts leadership back in the driver’s seat by leveraging innovative and digital technologies to transform business operations.

As outlined in our report, our approach differs from legacy DoD audit remediation approaches by focusing on proactive process improvement, holistic transformations, and direct alignment with the FY 2021 National Defense Authorization Act (NDAA) reporting requirements. Deloitte leverages three phases to implement this approach: Assess, Advise, and Innovate, resulting in a sustainable and organic roadmap for agencies to further accelerate their paths to audibility.

Deloitte audit remediation value added

  • Deloitte’s approach has helped multiple agencies obtain unmodified audit opinions, remediate NFRs, and improve mission outcomes
  • Agencies can operate more efficiently, while increasing their ability to meet FY 2021 NDAA reporting requirements around AI, Process Robotics, and Digital Technologies.


Deloitte’s innovative approach to audit remediation efficiently combines cutting-edge technologies, such as AI, RPA, and CPM tools, with a deep understanding of business processes, financial reporting requirements and risk management, to deliver sustainable audit outcomes.

Beyond audit success, the industry-leading practices we deploy help position our clients to further enhance business operations, drive better data-driven decision-making, and further strengthen mission outcomes.

Contact us

If you have any questions about the information in this publication, please contact us:

Ezekiel McMillan
Deloitte & Touche LLP
+1 571 882 7344
Kristin Wulff
Managing Director
Deloitte & Touche LLP
+1 571 882 5149
Rob Porter
Deloitte & Touche LLP
+1 571 858 0517
Fran Legall
Senior Manager
Deloitte & Touche LLP
+1 571 882 8427
Kirk Marzock
Senior Manager
Deloitte & Touche LLP
+1 571 858 1377

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