When you receive a contract from the United States government, you are entering into a business relationship with the largest purchaser of goods and services in the world. It is an organization that is highly sophisticated, with written and unwritten rules and expectations, DCAA audits, and stiff consequences when compliance isn’t met.
This white paper explores the role of the Defense Contract Audit Agency in federal contracts, and reviews the following DCAA audits:
- Pre-award survey
- Full blown accounting system review
- Provisional billing rate audit
- Progress payment audit
- Surprise timesheet audit
- Financial capacity audit
- Annual incurred cost audit
- Contract closeout
We’ll detail how DCAA audits works, what is checked, what’s at stake, and how hard each is to pass. This overview should help you make informed decisions about the proper oversight of your accounting system.