I keep on reading this over and over. But even though I was involved in outside audit support before I retired from a federal agency, I am not sure what this could mean. While we always passed (sometimes with moderate severity concerns corrected in the next annual audit), I felt that the outside auditors tended to focus on issues that would be important for a joint stock company, but were not as relevant to our fiscal integrity.
According to this article, an example of the problem is that the Defense Department does not have a consolidated list of all its buildings in the United States. Sounds like busy work.