Contractors Wary as DCAA Seeks More Internal Documents

September 9, 2012

The Defense Contract Audit Agency has issued new guidance meant to help its auditors access contractors’ internal documents, a move that industry advocates say could worsen an already tense relationship.

The agency, which conducts audits to make sure contractors use the right methods to charge the government, has beefed up its staff and increased its tests of companies’ systems in recent years. Industry advocates have complained that the agency has become too strict.

The new guidance, issued Aug. 14, responds to a Government Accountability Office recommendation that the audit agency better ensure it has needed access to contractors’ internal audits.

In a report released late last year, the GAO found that the DCAA’s ability to see and use companies’ internal audit information was generally limited. The GAO found that the sample of companies it reviewed generally worked on a case-by-case basis and required that the internal information directly relate to a specific DCAA audit.

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