A security audit of IT systems within Federal Government agencies is being undertaken by the Defence Signals Directorate.
Covering 10 agencies the audit has found serious security flaws in a number of them.
This has led the Australian National Audit Office (ANAO) undertaking a full audit.
An ANAO spokesman was unwilling to discuss the initial findings but said a full report will be tabled in Parliament in September.
He said the 'Internet Security' audit began in January.
Computerworld understands Unisys has been commissioned to assist with the audit and will be involved in testing Internet sites and identifying potential flaws.
Meanwhile, the Government has released a guide for commonwealth managers on how to make Internet delivery decisions.
To meet the Government's 2001 online mandate, the guide provides advice on how to implement e-commerce initiatives and is available at anao.gov.au