Whitepaper: The Audit World's Biggest Myths
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We help companies prepare for routine DCAA Audits and DCMA Reviews with confidence.
Capital Edge’s DCAA Audit Services support clients in preparing for audits of financial and accounting data, or that are narrowly focused, specialized investigations stemming from a variety of causes.
DCAA audits include reviews of contractors’ financial representations and non-financial assertions designed to assess if contractors’ costs are reasonable, business system and compliance controls are designed and operating effectively and comply to contract terms. We guide our clients by employing our leading expertise, anticipating and meeting the needs for audit services,andfacilitating decision makingaround regulatory compliance needs.
Our signature DCAA Audit Services include:
DCAA audits may be of a financial or non-financial scope and are designed to assesswhether contractors’ costs are reasonable and otherwise comply toa variety of regulatory compliance and contract terms. DCAA audits are triggered by a government contracting officer’s request for audit services and used to assist with making decisions or regulatory compliance needs. The DCAA does not conduct audits requisitioneddirectly by contractors, rather, audits are performed either as initiated by the DCAA or requested by a federal agency.
DCAA auditsmay entail a singular audit of a nonrecurring or infrequent nature, or a few or several different audits performed on a concurrent basis. Actually, there’s a DCAA audit for almost every type of accounting situation, with the more common ones including:
Here are some of the more common questions being asked about CAS
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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