KPMG, one of the Big Four accounting firms, is winding down its federal government audit business after losing a $64 million-a-year U.S. Army audit contract, a major setback as the Department of War under Defense Secretary Pete Hegseth moves to bring in another accounting firm.

According to the Financial Times, the Army’s shift to a new auditor comes as pressure intensifies on Hegseth to gain control of the DoW’s finances after nearly a decade of failed independent audits.

The DoW, which oversees an annual budget of roughly $840 billion, has not passed an independent audit in eight years, and Washington lawmakers have set a deadline for the department to do so by 2028.

https://www.zerohedge.com/markets/kpmg-ends-us-govt-audit-business-after-losing-army-contract