(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140087-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 87
• Publication Date: August 14, 1959
• Content Type: MF

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
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CIA in this discussion were Messrs. H. Gates Lloyd, Deputy to the
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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.
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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