Before even debating the effectiveness of this audit, we have to address the fundamental problem: Elon Musk has no legal authority to be conducting this in the first place. The Department of Government Efficiency (DOGE) is not a real government agency and Musk has not been confirmed by the Senate or given formal oversight. It's illegal and unconstitutional.
Beyond that, yes, large-scale government audits have been done before. In fact, we already have institutions designed to do exactly that. The GAO, the Office of the Inspector General, and even bipartisan commissions have uncovered fraud and inefficiencies without letting an extremely partisan private individual with massive conflicts of interest connected to his businesses arbitrarily rip apart government agencies.
Your claim that the continued existence of fraud means the system does not work is also specious, it's obviously not possible to eliminate all fraud, statements like that make me doubt that your comment is made in good faith.
DOGE is actually the USDS: https://en.wikipedia.org/wiki/United_States_Digital_Service