If you are a government contractor, you must be well versed with the rules and regulations of business dealings in the public sector. Dcaa compliances a vital part of this terms and regulations part of the business carried on by the governments. This is a process that helps a government to make sure that their funds are being utilized in the correct way. This also helps a government body to spend only that amount of money from their treasury that is needed as actual expenses for their work.
Modern changes occurred
Earlier, the law of Dcaa Audit was only followed by the United States, but now it has become pervasive in many parts of the world. This method was applicable for only the army and defence sector initially. Many concerns and large firms have now taken up this procedure for a better goodwill base and also for growth in dealings with the government.
How it works
The whole procedure of DCAA audit is extremely simple and must be carried out by all public sector contractor agencies. It is necessary that you maintain proper and regular accounts for any project that is being completed under you. After the completion of this project, the government will ask you to do an overall incurred cost submissions for further verification. Professional auditors are further given the responsibility of finding out any mistake in the accounts if any. After this, a report is generated on the basis of the investigation and, this is submitted to the Comptroller and Auditor General to obtain an authorized signatory on it. The amount of money approved is thus reimbursed into your account by the government.
Modern changes occurred
Earlier, the law of Dcaa Audit was only followed by the United States, but now it has become pervasive in many parts of the world. This method was applicable for only the army and defence sector initially. Many concerns and large firms have now taken up this procedure for a better goodwill base and also for growth in dealings with the government.
How it works
The whole procedure of DCAA audit is extremely simple and must be carried out by all public sector contractor agencies. It is necessary that you maintain proper and regular accounts for any project that is being completed under you. After the completion of this project, the government will ask you to do an overall incurred cost submissions for further verification. Professional auditors are further given the responsibility of finding out any mistake in the accounts if any. After this, a report is generated on the basis of the investigation and, this is submitted to the Comptroller and Auditor General to obtain an authorized signatory on it. The amount of money approved is thus reimbursed into your account by the government.
