Audit Support
When the auditor arrives, have someone who has been the auditor.
Preparation and representation for DCAA and DCMA audits and buying command cost analysis. We handle the data requests, the entrance and exit conferences, and the findings.
- 12 years inside DCAA
- 100+ DoD contractors audited
- CPA led
- QuickBooks, Costpoint, SAP & NetSuite
- Remote, nationwide
An audit is a managed process, not an event that happens to you
Most contractors experience a government audit as something done to them. That is the expensive way to go through it. Audits have a structure, a scope, and a set of expectations, and a contractor who understands them controls far more of the outcome than they realize.
Having run these audits from the government side for 12 years, and then sat on the contractor side as the primary DCAA and DCMA liaison for a defense technology company, we know both halves of the conversation. What the auditor is actually testing. Which requests are in scope and which are not. How a finding gets written, and what evidence changes it before it becomes final.
The single most valuable thing we do is manage the flow of information. Responsive, accurate, well-organized answers narrow the audit. Late, incomplete, or contradictory answers expand it.
Audits we support
Incurred cost audits
Examination of your final indirect cost rate proposal, questioned cost, and the rate determination that follows.
Business system reviews
Accounting, estimating, and other DFARS business system reviews, including the corrective action process when a system is found deficient.
Pre-award and post-award surveys
Accounting system adequacy at pre-award, and the post-award reviews that revisit it.
Forward pricing proposal audits
Audit of proposals in support of negotiation, including fact-finding and the technical evaluation interface.
DCMA and buying command analysis
Cost and price analysis performed by the contracting activity rather than DCAA, which follows different rhythms and expectations.
Terminations, REAs and claims
Termination settlement proposals and requests for equitable adjustment, including support through dispute and litigation where it goes that far.
How we support an audit
Scope and readiness assessment
What is being audited, what period, under what authority, and where your exposure actually is. We would rather find the problem before the auditor does.
Preparation
Assembling and reviewing the records that will be requested, and preparing the people who will be interviewed.
Entrance conference and liaison
We manage the auditor relationship and act as the single point of contact so responses are consistent and controlled.
Response to data requests
Complete, accurate, on-time responses. This is where audits are won or lost.
Findings and exit
Responding to draft findings with evidence while they are still draft, and where necessary supporting the contracting officer negotiation or dispute that follows.
Questions
Frequently asked
We just received an audit notification. What should we do first?
Do not send anything yet. Understand the scope and the authority for the request, and get your own view of your exposure before you start producing records. Then respond promptly and completely. Both halves matter.
Should we let the auditor talk to our staff directly?
Usually yes, and obstruction is counterproductive. What helps is preparing people properly so they understand the process, answer accurately, and know it is entirely acceptable to say they will find out rather than guess.
What if we disagree with a finding?
Draft findings are the moment to act. Evidence supplied before a report is finalized is far more effective than a challenge afterward. If cost is questioned in a final report, there is a defined path through the contracting officer and, if it goes that far, formal dispute.
Can you represent us if you did not do our accounting?
Yes. We take on audit support for contractors whose books are kept elsewhere, in-house or by another firm. We will tell you early if we think the underlying records create a problem we cannot argue around.
What is a termination settlement proposal?
When the government terminates a contract, usually for convenience, you are entitled to recover incurred cost, settlement expense, and in most cases a reasonable profit on work performed. It is a specialized submission with its own rules, and it is frequently underclaimed.
More
Related services
DCAA-compliant accounting systems
Design, configure, and document a system that meets DFARS 252.242-7006 and survives a system review.
SF 1408 pre-award surveys
Get your accounting system judged adequate so you can accept a cost-type award.
Incurred cost submissions
Adequate ICE submissions filed on time, with schedules that reconcile the first time.
Indirect cost rate structures
Pool design, allocation bases, provisional billing rates, and the annual true-up.
Contract pricing & proposal support
Cost volumes and basis of estimate for FFP, cost-reimbursable, and T&M solicitations.
Forward pricing rates (FPRP & FPRA)
Forward pricing rate proposals and agreements so every future bid prices faster and with less argument.
CAS Disclosure Statements
Form CASB DS-1 preparation, cost impact analysis, and disclosed practice compliance.
Post-award & business system reviews
DFARS 252.242-7006 reviews, material weaknesses, payment withholding, and corrective action.
Terminations, REAs & claims
Termination settlement proposals and requests for equitable adjustment. Frequently underclaimed.
Facing a government audit?
Tell us the audit type, the notification date, and what has been requested. We will tell you where you stand and what the realistic path through it looks like.