The DoD IG recently revised its website and posted new fraud indicators related to Forward Price Proposal and Postaward audits (see, http://www.dodig.mil/resources/fraud/resources2.html).  The new guidance identifies 9 indicators associated with Forward Price Proposal and 11 Postaward (defective pricing) audits.

These indicators, along with other audit specific fraud indicators noted on the website, are provided to assist DCAA auditors in identifying potential fraud in conjunction with their daily audit activities.  To minimize audit and compliance risk, contractors should be aware of these indicators when designing or assessing related internal controls and business system effectiveness.

Lastly, as Incurred Cost Audits are popular now with DCAA, it may be beneficial for contractors to review the fraud indicators associated with these audits as well (also posted on the website).  Of particular interest and high visibility during audits these days are professional services and consultants and expressly unallowable costs.  Both of these items are posted separately with indicators, and, both have recent MRD guidance.  Keep in mind, revised MRD guidance re expressly unallowable costs should be forthcoming based on the recent Raytheon decision.