Once the finding becomes apparent the next question is to decide on the most effective course of action. Should you go up the DCAA chain or is their position unlikely to change? This most often depends on how firm their guidance is on the issue and their history on the issue. Should you, instead, focus your effort on preparing a formal response to be included in the "Contractor’s Comments" section of the audit report? Will you also seek to have the CO reverse the decision or find an acceptable compromise? Or, does it make more sense to accept DCAA’s position and do nothing? Though emotions often cloud the issue, if the impact of the negative position is not significant this may be the most prudent course so more significant battles can be fought later. (Editor’s Note. This phase is an excellent time to use our"Ask the Experts" service to subscribers – you can email or call us with an explanation of your situation and we can put the question to one of our accounting or legal experts to help you decide how best to proceed at no charge.)

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