DCAA audit reports are no small component and for government contracting firms, they serve a very crucial purpose. All contractors are subject to audit according to federal regulations and this stipulates the right of the auditor to examine all documents, books, data and records that outline the accounting policies and procedures. This audit is conducted as a method of verifying accuracy, job costing , and completeness. of policies and procedures. These of course are records that are restricted to the normal course of business operations. In essence, there should be no request by the DCAA for records that aren’t currently in possession of the contracted business. This audit is extremely important and should be properly prepared for in order to experience the best results of reporting.
Availability of Data
DCAA auditors can and will request any data that is related to costs associated with the business. All requests must be made within compliance of the rules and regulations set forth by the compliance of the DCAA. Before making any data available, the contractor should make certain that they completely understand any request made by the DCAA auditor. This allows the company to disclose only the necessary documents to complete the audit and also allows them the ability to review and document everything prior to transferring them to the DCAA. In many cases, the company should request that all data requested by the DCAA is put forth in writing, for documentation purposes.
Controlled Environment
Although this is may be an formal audit, contractors should facilitate the access of documents provided to the auditor. Many businesses allow access via the control of internal records or data management and don’t allow the auditor to have sole access to their files or facility where the data is stored. It is prevalent to provide the auditor with a designated space to view the details for the audit. This is a way to control the environment in which the audit is conducted and reduces the probability of tampering or misplacing viable documents. With the assistance of a well versed and prepared CFO, there should be no issues of the auditor and company having difficulty communicating the needs and ability to meet those needs clearly. A proper work environment to perform an audit in is conducive for both parties involved.
DCAA Audit Reports in Bethesda play a large role for the future growth of many government contracting firms.
