External Peer Review of the National Guard Bureau Internal Review Office

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Date Issued

Friday, May 30, 2025

Submitting OIG

Department of Defense OIG

Agencies Reviewed/Investigated

Department of Defense

Report Number

DODIG-2025-107

Report Type

Inspection / Evaluation

Agency Wide

Yes

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 7 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
D-2025-2107-DEV0SO-0001-0001	No	$0	$0
Rec 1: The DoD OIG recommended that the the U.S. Property and Fiscal Officer for the Nevada National Guard issue a memorandum to the auditors assigned to the Internal Review Division emphasizing that when auditors do not comply with Generally Accepted Government Auditing Standards requirements, the auditors should take the following actions in accordance with Generally Accepted Government Auditing Standards 2.19 and 9.05. a. Assess the significance of noncompliance to the engagement objectives. b. Document the assessment, along with the reasons for not following the requirement. c. Determine which type of Generally Accepted Government Auditing Standards compliance statement to use. d. Include a modified Generally Accepted Government Auditing Standards compliance statement in the audit report.
D-2025-2107-DEV0SO-0001-0002	No	$0	$0
Rec 2: The DoD OIG recommended that the that the U.S. Property and Fiscal Officer for the Nevada National Guard develop and implement a process for the monitoring and documentation of quality in their office in accordance with Generally Accepted Government Auditing Standards 5.43 and 5.44.
D-2025-2107-DEV0SO-0001-0003	No	$0	$0
Rec. 3: The DoD OIG recommended that the U.S. Property and Fiscal Officer for the Nevada National Guard require that auditors assigned to the Internal Review Division obtain training on performing nonaudit services in accordance with Generally Accepted Government Auditing Standards.
D-2025-2107-DEV0SO-0001-0004	No	$0	$0
Rec. 4: The DoD OIG recommended that the National Guard Bureau Internal Review Office Director issue a memorandum to the auditors at the National Guard Bureau Internal Review Office Headquarters and the Internal Review divisions of the United States Property and Fiscal Office to emphasize the requirement to inquire of the audited entity's management whether any investigations or legal proceedings significant to the audit objectives have been initiated or are in process with respect to the period under audit, in accordance with Generally Accepted Government Auditing Standard 8.27.
D-2025-2107-DEV0SO-0001-0005	No	$0	$0
Rec. 5: The DoD OIG recommended that the National Guard Bureau Internal Review Office Headquarters Director and U.S. Property and Fiscal Officer for the Maryland National Guard develop and implement a tool, such as a fraud risk assessment template, to help ensure that the auditors assess the risk of fraud that is significant in the context of the audit objectives, in accordance with Generally Accepted Government Auditing Standard 8.71.
D-2025-2107-DEV0SO-0001-0006	No	$0	$0
Rec. 6: The DoD OIG recommended that the National Guard Bureau Internal Review Director develop and implement a tool, such as an independence tracking checklist, to assist auditors at the Internal Review Headquarters office with ensuring that all supervisors and auditors assigned to an engagement complete a statement of independence before starting the engagement.
D-2025-2107-DEV0SO-0001-0007	No	$0	$0
Rec. 7: The DoD OIG recommended that the National Guard Bureau Internal Review Office Director develop and implement a tool, such as a reporting checklist, that includes a step to verify that each audit report includes the appropriate GAGAS compliance statement in accordance with Generally Accepted Government Auditing Standards 2.17 and 9.03.