Whitepaper: The Audit World's Biggest Myths
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Our DCAA Audit Services are meant to help government contractors with their DCAA Audit Preparation and DCMA Audit. Companies seeking or performing under U.S. federal government contracts are subject to a wide range of oversight activities potentially performed by a host of government entities. These oversight activities may include routine DCAA audits or DCAM reviews of a contractor’s financial and accounting data or narrowly focused, specialized investigations stemming from a variety of causes. Our DCAA compliance consultants can help you.
The government agencies performing these oversight activities are grouped below because each of them has different objectives or agendas and may require a unique approach to respond to, support, and resolve the government’s oversight purpose.
DCAA audits are reviews of financial representations designed to help determine whether contractor costs are reasonable and comply to contract terms. DCAA audits are triggered by a contracting officer’s or administrative contractor’s need for audit services to make decisions or regulatory compliance needs. DCAA does not conduct audits requested by contractors. DCAA only performs an audit if it has been requested or there is a need by a federal agency.
A DCAA audit in the government contracting section is not just one singular audit each time. There are a few different audits used, and actually, there’s a DCAA audit for almost every type of accounting situation, with the more common ones including:
Capital Edge has DCAA Audit Services that can assist with the response to and management and resolution of the government’s broad oversight activities in many ways. Our contract compliance DCAA audit and DCMA Audit services in this area include:
Here are the latest questions being asked about DCAA Compliance
Yes. In the current environment with an increase in Work at Home (WAH) employees, DCAA can conduct virtual floor checks
A virtual floor check, (or floor checks by phone), somewhat diminishes DCAA’s approach to floor checks. Floor checks are intended to be unannounced in order to interview an “uncoached” employee. Likely, virtual comprehensive floor check audits under the current increase in WAH activity, will be minimal.
→Click-to-read more on DCAA Floor Checks
The main activity we see is performance of a ‘mock audit’ or other forms of self-assessment prior to the start of the audit. The purpose of the mock audit or self-assessment is to determine if current internal controls are operating effectively and if compliance gaps may exist. If gaps are identified, corrective action plans may then be developed and potentially put into action.
This process demonstrates the monitoring function that is required as an element of a compliant business system and may be an effective portion of the system demonstration provided to the DCAA during the initial phases of the audit.
A few things are primary, and, if performed effectively should enhance the opportunity for a low or medium risk determination. First, timely and thorough responses to DCAA’s initial requests for information. Responses need to specifically address the DCAA requests or questions and demonstrate how the response satisfies the related compliance requirement or audit objective. Second, identification and submission of relevant written documentation demonstrating the use and effectiveness of key controls. Written documentation may be policies, procedures, process flows, or other material. And third, a comprehensive business system demonstration or walkthrough of the processes, procedures, and internal controls applicable to the principal components of the business system.
Capital Edge government contract consultants support Government Contractors and Federal Grant Recipients. Our consultants specialize in the regulatory compliance matters you need.
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