Report | Sept. 8, 2014

Review of Audits Issued by the Defense Contract Audit Agency in FY 2012 and FY 2013



As part of our continuous oversight responsibility of DCAA, we reviewed a cross section of 16 DCAA audits completed between October 2011 and February 2013, including 5 audits of forward-pricing proposals and 11 audits of incurred cost proposals and other audit types. We reviewed the audits primarily to determine whether DCAA:

  • correctly applied applicable acquisition regulations and DCAA policy;
  • determined the adequacy of contractor cost or pricing data (if applicable);
  • gathered sufficient evidence in support of the reported opinion; and
  • issued an audit report that adequately explained the audit findings and met the contracting officer’s needs.


We identified 1 or more significant inadequacies on 13 of the 16 selected DCAA audits.  We found deficiencies with generally accepted government auditing standards in the areas of audit planning, evidence, working paper documentation, and supervision.  In addition, our review disclosed instances of auditors not obtaining adequate cost or pricing data.


We made 96 recommendations associated with the 13 audits found to contain inadequacies.  The Director, DCAA agreed with 72 recommendations and did not agree with 24. We request that DCAA reconsider its responses to 21 of the 24 recommendations for which DCAA did not agree.