If you are working with or in a DCAA-compliant company, you are looking for more information about the types of audits. Audits might seem scary, but usually, they are done just to make sure that your spending and cash flow are reasonable and appropriate. If you get audited, there is no need to panic. One of the main things to remember when it comes to auditing though is that you need to make sure you have systems in place that track all your spending and your cash flow. This will ensure that if you get audited, you have all the paperwork ready to show.
One of the main audits that are performed is called forward pricing. This is usually done before you actually get awarded any kind of contract. This is when you will be evaluated and an estimate will be done for the cost of being a contractor as well as the costs you will need to provide and goods and services you are advertising.
Special DCAA Audits
Special audits are done before or after a contract. They are usually done if an officer requests them for some reason. The contracting officer might decide they need an independent financial opinion on certain parts of the contract. They might also want to see the systems you have in place and to make sure they are compliant before moving on with the contract. These audits have to be completed before the contract can move forward, so these are usually considered to be a high priority compared to other types of audits.
No matter what type of audit you might be faced with, you might need to consider partnering with an accountant before going forward with the audit yourself. Audits will look through even the most minor transactions your company has, so you always need to make sure you know where all the money is going and where it’s going.
When to Work with an Accountant
Ideally, you should be working with an accountant any time you have a DCAA business. If you don’t already have one though, you should definitely find one you trust before the audit is finished. A certified accountant will be able to take a look at all your records and make sure everything is in order.
If they find something out of place, they will be able to help explain it so that the audit continues to move forward smoothly and you can minimize the impact.
