Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 9, 2016
Document Release Date: 
July 24, 2000
Sequence Number: 
Case Number: 
Publication Date: 
August 14, 1959
Content Type: 
PDF icon CIA-RDP80-01240A000100140087-2.pdf126.33 KB
Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140087-2 August 14, 1959 Messrs. Samuelson and Pahl, CARD, met with representatives of CIA at 2:30 p.m., August 13, 1959, to discuss in more detail the proposed expansion of our audit work at CIA. Representatives from 25X1A CIA in this discussion were Messrs. H. Gates Lloyd, Deputy to the De ut fo Su rt l l D G 25X1A p y r ppo , , eputy enera Counse , Deputy Comptroller, and Audit in the absence of Acting Chief of Internal The purposes and techniques-of the GAO comprehensive-type audit approach were discussed and it was pointed out that in its application to CIA we would propose to review the organizational structure, the agency policies for conformity with legislative intent or other authority, and the agency practices and procedures followed in.carrying out the agency policies. In particular we would want to review and determine the effectiveness of the internal review mechanisms such as internal audit, inspections, and the like, existing in the agency. The examination of actual transactions would be selective for the purpose of appraising and evaluating the application of the agency practices and procedures. We would propose that following a preliminary review of the organization and the policies and financial practices, we would undertake more detailed reviews, initially primarily in the support area. We recognized that certain limitations, by virtue of the nature of their function, in our reviews would be encountered, and we would propose to meet those as we went along and work out with the appropriate officials whatever agreement as to access we could with them. The CIA officials stated that broadening of the audit by GAO to the extent proposed would get us into highly classified and compartmented areas in every activity. These officials concluded that the agency officials at a higher level than themselves would have to determine the extent to which they would grant access to these areas and these determ- inations.'would, have to be discussed with and agreed to by the Director of CIA. For this ose the CIA officials were ff2ipg to compile a listing of the arm that _p coxidebe 1 clasea and to discuss this matter with Mr.Dulles for his decision. In this connection it was pointed out to a agency representatives that unless we could make an audit reasonable under the peculiar circumstances at CIA, we necessarily would have to report the matter to Chairman Kilday, of the Subcommittee on CIA. There was a brief discussion on our reporting and the CIA repre- sentatives were informed that any reports which we may prepare as result of our audits at CIA would be subject to CIA's security classification. CM ties At Is ~?` ~ ,, col~4aEam err:~ +It i41I* t *at ewtt N 15 'w ~~,A:r at~4sl4fgd ~t '~ ~ pied For Release 2001/09/04: CIAEF WW7-2 Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140087-2 In reply to a question on our handling of Congressional inquiries on our findings in our audits at CIA, the CIA representatives were informed that the ix~uirer wu~l n ~tRi~~r?a we would be governed by whatever decision was made bZ him. The meeting concluded about 4:00 o'clock with Mr. Lloyd stating that he would call us as promptly as decisions could be reached by CIA. Eugene L. Pahl cc: Mr. Campbell A. T. &&muelsof Approved For Release 2001/09/04: CIA-RDP80-01240A0001,00140087-2