Monday, March 19, 2018
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1408 Audits
The Government Accountability Office (U.S.GAO) issued an 80 page document (GAO-08-857) in July 2008 that effectively identified the DCAA as having a lack of independence by working too close to the contractors they audit and not utilizing the accepted industry standards in their reports. More...
1408 Pre-Award Audit Support

Per DCAA, "the pre-award accounting system survey is an audit to determine the acceptability of a contractor's accounting system for accumulating costs under a prospective Government contract". Without a good bill of health from DCAA, contractors are limited in the types of contracts that they can be awarded.  ABS Pre-Award Audit assistance starts at the Request for Proposal response stage when the client first anticipates the potential for the Defense Contract Audit Agency pre-award audit. 

The Standard Form 1408 is reviewed with the client to insure accounting system capability and supporting policies, procedures and processes meet DCAA criteria. Specific regulatory guidance provided in FAR Part 31.2 and applicable Cost Accounting Standards are used as benchmarks to insure the client's ability to pass the pre-award audit. Specific review areas include:  

  • Financial Systems Review and modification as required.  We redesign your chart of accounts and train your staff to ensure you properly segregate costs. We leverage your systems and processes as necessary for complying with government contract requirements.  
  • Setting up indirect cost rate structure.  We assist you in determining an indirect cost rate structure that best supports your business. We evaluate you organization, making recommendations, as necessary, to develop a structure that best suits your business and ensures you are competitive.   
  • DCAA does not approve accounting software, rather the combination of accounting software, controls and policies and procedures.  To get you compliant, we review existing and assist in the development of new DCAA compliant accounting policies and procedures and we make sure controls are in place to keep your accounting and financial reporting in compliance with Federal Acquisition Regulations.

Contact ABS 
today for a mock audit and to ensure you are ready for your new contract

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