The Department of Defense (DoD) audit, inspection and investigative community acts as an agent of positive change in identifying better ways to accomplish the DoD mission by controlling risk, fighting fraud and reducing costs. By closely linking our oversight activities with the Department's strategic goals and management improvement plans, as well as extensively participating in DoD team problem solving efforts, we try to provide objective, relevant, practical and timely advice to policy makers, managers and commanders. In the two previous semiannual reports, we discussed the principal high risk areas in the Department-- Acquisition, Financial Management, Infrastructure and Information Technology Management. In addition, we addressed certain focus areas where there continuously are numerous significant audits and investigations-- Acquisition Reform, Health Care Fraud, Readiness, Property Disposal and Official Misconduct. In this report, we provide updates on the main high risk areas, with additional detail on Information Technology Management. We also discuss another focus area--Environment.