Pricing and Cost Accounting, 3rd Edition

 

CHAPTER 11Government Contract Audits

Any audit can be cause for anxiety. Being familiar with the various types of audits that may be conducted, however, will help a contractor be prepared. When an audit is to occur, a contractor should: (1) be aware of why the audit is a requirement, (2) understand what the auditor will be looking for, and (3) request an entrance and exit conference with the auditor to avoid any misunderstandings.

For contractors audited by DCAA, the auditing concept and process changed significantly in 2010. Formerly, DCAA’s mission was to provide financial advice in the administration of contracts. In response to criticism by the Government Accountability Office (GAO), the DCAA mission has shifted emphasis and added that ...