DCAA Audit Assistance

The Defense Contract Audit Agency (DCAA) is a separate agency of the Department of Defense, whose objective is to audit contracts. The results of the audits are provided to the agencies responsible for government procurement by providing advice and opinions on financial and accounting matters to assist in the negotiation, award, administration, repricing and settlement of government contracts. DCAA evaluates contractors' policies, procedures, controls and actual performance, identifying and evaluating activities which either contribute to, or have an impact on proposed or incurred costs of government contracts.

The following are examples of situations where DCAA may be called upon for their assistance:

1.    Review of bid proposals

2.    Audit of indirect cost proposals

3.    Financial capability review

4.    Audit of contract costs incurred

5.    Accounting system compliance reviews

6.    Audit of change order/contract modification costs

7.    Audit of costs incurred on contracts terminated for convenience
   

Contractors that are new or inexperienced with Federal contracting are often overwhelmed by the accounting requirements, standards and regulations required by the government and DCAA. Even though DCAA cannot dictate how a contractor's accounting system is structured, personnel in DCAA sometimes make strong recommendations to contractors to use accounting practices to suit the government's purposes, which may not have equitable results for the contractor. These recommendations and undue requirements imposed on small or medium sized contractors can cause significant disruptions in the contractor's operations, not to mention the confusion.

CECA Consulting is experienced in assisting contractors through the audit process. If you are involved in government contracting, chances are you will encounter DCAA at some time. Don't be intimidated or allow your profits to be taken away because you are uninformed. The opinions expressed in DCAA audit reports are not always correct. Let one of CECA's consultants help you through the process of the audit and in responding to incorrect or misleading positions taken by DCAA and reported to the procurement agencies in the audit reports.

Company Info |  Services |  Client List  |   Experience |  Cont@ct Us |   Home