audit

The Defense Contract Audit Agency (DCAA) recently issued its Fourth Annual Report to Congress dated March 25, 2015. Once again, the report shows DCAA is making modest improvements in the timeliness of its audits, and continues to seek regulatory changes that would provide DCAA greater access to contractors’ data, internal audits, and personnel.

Congress began requiring annual reports from DCAA in 2011 following well-documented and widely reported criticisms of DCAA that ranged from allegations about failure to comply with professional standards, questions about the timeliness of audit reports, and the well-publicized increased backlog of incurred cost proposals requiring audit. Section 805 of the 2012 National Defense Authorization Act requires DCAA to submit an annual report by March 30th of each year. Each report must provide statistics on DCAA’s audit performance during the previous fiscal year and address “Significant Deficiencies and Recommended Actions to Improve the Audit Process.”Continue Reading DCAA’s 4th Annual Report to Congress Will Look Familiar to Many…

On July 15, 2014, the U.S. Department of Defense (“DOD”) issued a proposed rule that imposes new requirements for third-party audits of three contractor business systems, as well as a requirement for contractors to self-report deficiencies uncovered in these audits or in internal reviews of these business systems. The three business systems at issue are