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Contract Audit Resources

Contract Audit Services Catalog

The following is a list of contract audit services and description:

Preaward Accounting System Surveys

To opine as to whether the design of contractor’s system is acceptable for award of a prospective Government contract based on the criteria defined in the Preaward Survey of Prospective Contractor Accounting System, SF 1408. The audit will also determine if the system is in operation, or set up, but not in operation.

Contract Price Proposals

Evaluation of contractor’s proposal for its compliance with applicable provisions (e.g., FAR Part 15 and 31, CAS, Uniform Guidance, etc.).

Forward Pricing Rate Proposals

To support the establishment or modification of forward pricing rate agreements (FPRA) or forward pricing rate recommendations (FPRR) or to form the basis for subsequent audit recommendations related to price proposals.

Cost Accounting Standards (CAS) Disclosure Statement

To support cognizant Federal agency official’s (CFAO) initial determination of compliance of the contractor’s description of cost accounting practices submitted in the Disclosure Statement.

Incurred Costs/Annual Overhead Rates

To determine if costs charged to auditable Government contracts are allowable, allocable, and reasonable in accordance with contract terms, applicable generally accepted accounting principles, cost accounting standards, and applicable Government acquisition regulations.

CAS Compliance & Adequacy

To determine if contractor's policies, procedures, and practices used to estimate, accumulate, and report costs on Government contracts and subcontracts comply with the requirements of CAS.

Truth in Negotiation Audit

To determine if a negotiated contract price increased a significant amount because the contractor did not submit or adequately disclose accurate, complete, and current cost or pricing data.

Interim Voucher Review

Performance of limited current period tests on selected paid vouchers. This assignment was designed to verify that cost billed to auditable Government contracts are allowable, allocable, and reasonable in accordance with contract terms, applicable generally accepted accounting principles, cost accounting standards and Government acquisition regulations

Progress Payment

Verification of amounts claimed on SF 1443 (Contractor's Request for Progress Payment) to contractor's accounting books and records and to evaluate the propriety of the progress payment request in accordance with the provisions of the contract.

Provisional Billing Rates

  • To establish or adjust provisional billing rates as required by FAR 42.704, Billing Rates.
  • Real time testing of labor accounting records (meets DCAA MAAR 6 criteria)
  • Perform data analysis and verification of labor accounting records to test contractor’s compliance with its timekeeping internal controls and procedures and the reliability of employee time records.

Purchases Existence and Consumption

To verify that purchased direct materials/services were, in fact received and ascertain that they were: (1) needed for the contract; (2) purchased in reasonable quantities; (3) purchased at a prudent price, (4) used on the contract, and (5) properly accounted for as to initial charge, transfer in or out, and residual value.

Termination Settlement Proposal

Evaluation of contractor’s proposal for its compliance with FAR Part 31 and 49, as well as applicable CAS provisions. Develop information and documentation to serve as a basis for reporting to the Termination Contracting Officer (TCO) the allowable costs, settlement expenses, and fee under the terminated contract, based on the contractor's proposal and supporting records.

Program Effectiveness 1

  • Assess the relative ability of alternative approaches to yield better program performance or eliminate factors that inhibit program effectiveness.
  •  Evaluate whether the entity is following sound procurement practices.
  •  Determine the effectiveness of processes based on established policies and procedures.

Compliance Audit

  • Determine whether resources are used in compliance with laws, regulations, or other requirements.
  • Assess management information, such as performance measures, and public reports are complete, accurate, and consistent to support performance and decision making.
  • Determine incurred or proposed costs are in compliance with applicable laws, regulations, contracts, or grant agreements.

Prospective Analysis

  • Analyze prospective information prepared by management.
  • Analyze budgets and forecasts that are based on (1) assumptions about expected future events and (2) stakeholders’ and management’s expected reaction to those future events.
  • Analyze management’s assumptions on which prospective information is based.

1 Effectiveness: Determines if programs are achieving its goals. Programs includes processes, projects, studies, policies, operations, activities, entities, and functions.

Accounting System

Examination of contractor’s compliance with the system criteria as prescribed in section (c), System Criteria of DFARS 252.242-7006, Accounting System Administration.

Estimating System

Examination contractor’s compliance with the system criteria for an acceptable estimating system as prescribed in DFARS 252.215-7002, Cost Estimating System Requirements.

Material Management & Accounting System

Examination contractor’s compliance as prescribed in DFARS 252.242-7004, Material Management and Accounting System, system criteria.


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