The Defense Contract Audit Agency, because of their Defense Department Contracts or contracts with other agencies that use the audit agency, audits most of the contractors in the survey. 87% of respondents described their relationship as excellent or good while 13% described it as fair or poor. (Editor’s Note. That is certainly a surprise to us but understandable since we are often asked to help contractors only after they have a poor experience with auditors. We would be shocked, however, if the same level of satisfaction applied to other agencies’ or local and state auditors. ) The most frequent types of costs questioned by DCAA are executive compensation (25% citing this as an audit issue), consultant costs (10%), indirect cost allocations (8%), legal expenses (8%) and bonuses and incentive compensation (8%). Most frequently cited violations of cost accounting standards were CAS 405, Unallowable costs (17% cited this as a compliance issue), CAS 403, Home office expenses (15%) and CAS 410, G&A (15%). 91% of surveyed companies reported that DCAA did not question a significant amount of costs while 9% reported either a significant or very significant amount. Of those companies experiencing audit issues, 35% were very satisfied with the resolution of the issues, 55% were somewhat satisfied and 10% were not satisfied.
{TAG_FORM_TITLE}
To discuss your needs, contact Bill Lennett, Principal, at 1-925-362-0712 or email him at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
.
