Pentagon Fails 7th Audit in Row, Aims for Clean Audit in 2028

Auditors recommended enhanced monitoring, timely variance resolution, and standardized processes to ensure compliance with accounting standards.

Defense Secretary Lloyd Austin speaks during a joint press briefing with South Korean Defense Minister Kim Yong Hyun at the Pentagon in Arlington, Va., on Oct. 30, 2024. Kevin Wolf/AP Photo

For the seventh year in a row, the Department of Defense (DOD) has failed its annual financial statement audit, a massive undertaking meant to ensure accountability for its $3.8 trillion in assets and $4 trillion in liabilities.

Despite the setback, Pentagon officials highlighted incremental progress and reaffirmed their commitment to securing a clean audit opinion by 2028.