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Ron Johnson: “We should use audit as a real management tool [in the…”

Featuring: Ron Johnson, Republican | U.S. Senate, Wisconsin

Senator Johnson at HSGAC

Published May 13, 2014 | Video Starts at 01:47

We will learn so much more by getting into audit because we'll have a private sector audit firm that really knows this stuff telling us … We should use audit as a real management tool [in the Department of Defense]. … we've audited or examined by independent public accountants. Right. A large number of parts. We had a full up audit of the current year of the Marine Corps and they just got a clean opinion last December. (01:47–01:51)

CLAIM

Asserts that audits should be used as a management tool in the Department of Defense.

This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.

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Ron Johnson

“Walmart is [audited]... Their revenue exceeds $450 billion per year. They've got 2.2 million employees, 1.3 million just here in the U.S.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 03:04-03:15
“The reason we don't have an audit for the Defense Department is because we've been pursuing what should be a requirement, audit readiness.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 00:33-00:41
“We should break [the Department of Defense] into accountable component parts for audits.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 03:01-03:05
“If back in 1994, you would have just started conducting audits... Why didn't we do that?”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 04:31-04:40
“Certainly in public accounting or public companies, they've got the pressure. If they don't do it, they're going to go to jail, they're…”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 05:34-05:42
“How much of the Defense Department has undergone an audit?”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 06:42-06:45
“In a public company, you'd audit a division or a department and you knock it down to small enough component parts.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 07:45-07:52
“The goal of an audit is to provide management information.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 08:33-08:37
“My approach is conduct the audit and use the management results.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 09:08-09:12
“You're never going to get an unqualified opinion if you don't have prior years experience.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 11:21-11:25
“Once you start doing it, they'll be accountable and they'll get into line.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 12:39-12:43
“Government shutdowns and budget dysfunction disrupt the ability to obtain an audit.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 14:34-14:45
“The private sector manages audits despite uncertainty and disruptions.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 14:48-14:53
“In my plastics manufacturing business, we required every operator to attach their initials to every roll of plastic they produced.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 16:05-16:14
“It's going to be a report that holds people accountable so you can work through that process to actually, you know, squeeze efficiencies out…”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 18:07-18:17
“In the private sector, you can have an assembly of hundreds of individual divisions all being audited, all being held accountable.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 18:46-18:54
“It's been going on for 20 years, it doesn't seem like it's a manageable process yet.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 19:32-19:36
“How much are we spending trying to get audit ready?”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 20:38-20:41
“We should transfer a private sector model to the Department of Defense for audits.”
Senator Johnson at HSGAC | Uploaded May 13, 2014 | 22:15-22:40