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$4.65 trillion in assets: Eight audits. Eight failures.
The Pentagon has tried to pass a full financial audit every year since 2018. It has never passed.
FraudBadPublic receipt
Department of Defense
Department of Defense
- Full audits attempted since 201881
- Audits passed01
- Assets covered$4.65 trillion1
- Liabilities$4.7 trillion1
- Material weaknesses found261
- Major agencies that have never passed1 of 24: DoD1
- Year it expects to pass████████████████
fraudbad.comNo taxation without receipts
What happened
In December 2025 the Defense Department failed its eighth straight financial audit. It is the only one of the government's 24 major agencies that has never passed.
Auditors flagged 26 material weaknesses. In one example, the department couldn't produce reliable data to verify the global pool of F-35 spare parts.
Why nobody caught it
- When auditors can't verify the books, nobody can rule theft or waste in or out.
How sure are we?
Can't be checked
The books or the spending can't be verified, so fraud can't be ruled in or out.
A failed audit is not proof of fraud. It means the records can't prove where the money and equipment are.
Sources
- Pentagon fails financial audit for 8th year in a rowDefense News · Dec 19, 2025
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