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Contract Audit Resources

Contract Audit Frequently Asked Questions

Our FAQs provide information on frequent questions or concerns. If you have questions about specific topics not included here, please contact us.

Contracting Officers

There is no standard time frame for an audit. In deciding on a reasonably achievable due date, auditors will have to consider the following:

  • past audits at the contractor
  • knowledge and status of contractor business systems
  • scope of audit
  • areas of risk
  • required assist audits
  • hours needed to complete the audit steps
  • available audit resources
  • time needed to prepare the draft report and address any management review comments

We recommend coordinating with our office as early as possible in order for us to meet your required deadlines (i.e., prior to starting negotiations). Every audit is unique, so it is important to contact us so we can assist you in planning and obtaining timely assistance. When the audit team is engaged early, and the contractor submits an adequate submission, the audit cycle is shortened.

Yes. We encourage contracting officers to share relevant information from their milestone plans with us. This coordination helps us facilitate our staffing, planning, and execution to meet your needs.

Our office should be notified of a future incurred cost audit as early as possible so that we can ensure that the appropriate audit resources are available to support contractor‘s incurred cost proposal audit.

The earlier our office is engaged, the better we can allocate necessary resources, prepare for your specific audit needs, and plan the schedule for the audit to support you.


We perform audits of claimed costs incurred and submitted by contractors for reimbursement under flexibly priced contracts to determine if the costs are acceptable in accordance with contract terms, Federal Acquisition Regulation (FAR), Uniform Guidance (UG) and Cost Accounting Standard (CAS) rules and regulations.

Yes. We have those tools and make them available on the website. One of the first steps that an auditor performs prior to starting an audit is to identify the adequacy of the contractor’s submission. The checklists that our auditors use to assess the adequacy of incurred cost submissions are available under the Checklist and Tools tab on our website. Our office developed the checklists based on regulatory requirements. We also provided a link to the Defense Contract Audit Agency (DCAA) Incurred Cost Electronically (ICE) model for incurred cost submissions under the Checklist and Tools tab on our website. After the submissions are sent to the contracting officer, they will determine if an audit is needed. Contracting officers can request from us an audit services.

No. Our office neither recommends nor approves any specific accounting system vendor software packages.

You do not need to take any step yourself. If your contracting officer needs rates from our office, they will request them.

No. Our auditors cannot provide specific advice to assist a contractor in preparing their submission because doing so would impair the auditor’s independence. Generally Accepted Government Auditing Standards (GAGAS/The Yellow Book) prohibits our auditors from providing advice to contractors on certain accounting or estimating matters. However, auditors may provide general advice on what constitutes an adequate submission and answer general questions related to the acquisition regulations. To avoid any appearance of impairment to independence, auditors should always refrain from comments that could be construed as advising the contractor on how to develop its submission. Contractors should look under the “Guidance” and “Checklist and Tools” tabs on the ICAS website for guidance about the adequacy of their specific submission.

No. Extensions for submitting final rate proposals can only be granted by the administrative contracting officer per FAR 42.302 and FAR 42.705-1(b)(1)(ii).

Contact your cognizant agency or visit the Government Accountability Office (GAO) website at


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