Findings During the Exit Conference. If problem areas have not surfaced beforehand, the Audit Exit Conference is the last best time to identify audit positions. The level of detail divulged depends on the type of audit. For audits of incurred costs, the results should be discussed in detail. Also, if needed to understand their position, the contractor is entitled to receive copies of the audit workpapers (e.g. Allied Materials and Equip. Co., ASBCA No 17318 established DCAA audit workpapers are not privileged) but, in practice, certain auditors may be uncertain of their authority so judgement about pressing the issue if refused needs to be made. For initial pricing proposals auditors will generally not disclose results of audit on the rationale the government negotiator does not want to "tip their hand." The auditor should be willing to disclose what factual data they relied on and discuss in general terms the areas of questioned costs. For example, they should be able to tell you they disagree with your proposed labor hours or rates without disclosing their specific recommendations. For defective pricing audits the auditor should discuss any factual indication that cost or pricing data was defective and a draft copy of the report with exhibits and footnotes should be supplied and the contractor given the opportunity to review the matter and provide any additional information. Results of audits of termination settlement proposals should be provided to the contractor. For equitable adjustment claims, the ACO frequently instructs auditors to not disclose audit results - they are, in effect treated like initial pricing proposals – but when historical data is used to price the price adjustment the contractor should request the ACO to authorize DCAA to openly discuss cost issues. Most other reviews (e.g. CAS Compliance, Estimating, Billing, Financial Capability, etc.) require full disclosure by DCAA. Sometimes auditors will try to avoid an exit conference but this should be adamantly rejected since some audit reports can wind up as fraud investigations and it is quite common for last minute problem areas to emerge when the auditor is compiling their workpapers and writing their report. (An exit conference by phone is acceptable if there are no major cost disallowances or all issues have been surfaced and they are clearly understood.)

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