The Defense
Contract Audit Agency usually informs contractors before sending auditors to
their facilities. The time between the announcement and the audit is not enough
to prepare properly. The key to preparing for an audit is to always stay aware
of vital regulations and contract stipulations. From launching a bid until the
audit is complete - learning about each step of the auditing process is vital.
One thing’s for sure - there will be demanding questions during the audit.
What the DCAA is Looking For – The Role of the DCAA
DCAA auditors
work for the Department of Defense. Their job is to supervise the
financial/accounting aspects of the DoD’s advisory board. They DoD advisory board
scouts and hires experts who can help them with specific services. The DCAA
oversees all the paperwork regarding these services. They also perform audit
services for other top government agencies. The DCAA Audit is
the admittance test that tests a contractor’s regulatory and financial
transparency.
Performing During Audits
The auditors
will most likely be ex-professionals from some of the country’s elite
accounting and consulting firms. They’ll test the contractor’s ability to offer
specific solutions to work under the government’s contracting rules.
Contractors should focus on their objectives. Prepare for the obvious
questions. Brush up on the DCAA compliance requirements
regularly. In some cases, auditors don’t announce their visits. Contractors
need to convince the auditors that they can address all the demands on time.
Show them around the facility, introduce them to workers, and, most importantly
– be transparent!
