Pentagon fails sixth audit, with number of passing grades stagnant

> The new [accounting] guidance allowed federal agencies to “modify” public financial statements, with essentially a two-book system. Public statements would at best be unreliable, while the real books would be audited in “classified environment[s]” ... The Treasury Department’s definition of a “component reporting entity” includes 154 different agencies and bodies ... The notion that any of these agencies could now submit altered public financial reports under the rubric of national security is mind-boggling.