Government contractors are subject to encounter various kinds of DCAA audits of their accounting records at the request of the government. These audits vary in intensity level but never the less, can all be extremely stressful and possibly harmful if the contractor isn’t properly prepared. Most of these audits are generally at stake for cost reimbursable phase awards. The DCAA audit is possible with various types of contracts including Material, Time and labor grade contracts. Most DCAA audits are generated on a contractor when the government senses a high enough risk for them to investigate. The government seeks assurance that contractors are operating on a system that is compliant with government standards and regulations. The accounting rules of the governments can vary slightly to vastly than those accounting practices in commercial industries.
Understand the DCAA Audit Process
There are many Rockville contractors who may not be clear on the requirements or the process of the DCAA audit. It is imperative to learn and completely understand the format and expectations of the audit. It is even more important to be properly prepared and often times, professional business services can help the contractors successfully prepare for the DCAA audit. This is always worth the time, money and effort because the possibility of a failed audit is more than any contractor would want to face. There is a certain protocol to abide by regarding the audit but with professional guidance, contractors can be certain to remain within all governmental guidelines as they apply.
Prepare to Pass
There are certain things that should be done in order to prepare for a successful DCAA audit in Rockville. The overwhelming idea of the audit is enough to make many people unsure of what needs to be done prior to the audit. There are a variety of audit types and it’s imperative to know which one applies to your contractors business. Contractors who are new on the scene of government contracting will be audited for proper meeting of accounting systems. There is also an audit that verifies the compliance of contract price proposals and that they are in required compliance. The fact that there are many different aspects of the audit make it almost necessary to seek professional business guidance in order to prepare to pass the audit. There is a very unique approach required for contractors to pass the DCAA audit and it helps to know exactly how to meet the standards as set forth by the government.
