DCAA Audits of Contractor Compliance With Cost Accounting Standards

PLRD-82-105: Published: Jul 28, 1982. Publicly Released: Jul 28, 1982.

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GAO reported on the results of its review of Defense Contract Audit Agency (DCAA) efforts to determine contractor compliance with cost accounting standards.

GAO found that DCAA cost accounting standards determinations generally appear to be reasonable. However, several determinations have lacked specific support or were based on weak evidence. As a result, DCAA officials proposed a revision to the Defense Contract Audit Manual which will require more complete documentation of compliance conclusions. GAO believes that these revisions adequately address the corrective action necessary to eliminate these deficiencies.

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