CAM - April 6, 2011 - Chapter 4 - General Audit Requirements

Defense Contract Audit Agency

Sujets

• management
• managers

Informations

• Publié par: Mophing
• Nombre de lectures: 55
• Langue: English

Extrait

August 19, 2011 4(1)
CHAPTER 4

Table of Contents

Paragraph Page
4-000 General Audit Requirements
4-001 Scope of Chapter...................................................................................... 401

4-100 Section 1 --- FAO Coordination with Procurement and Contract
Administration Personnel
4-101 Introduction.............................................................................................. 401

4-102 Coordination with Contractor and Government Contract

Administration Personnel..................................................................... 401

4-103 FAO Participation in Procurement Meetings Prior to Receipt of Audit

Request................................................................................................. 402

4-104 Establishing the Engagement/Acknowledgment/Notification Letter ....... 402

4-105 Interim Discussions.................................................................................. 403

4-106 Exit Conferences and Release of Draft Audit Reports............................. 404

4-107 Post Issuance Support .............................................................................. 404

4-108 Negotiation Memorandum and Findings on Appeals............................... 405

4-200 Section 2 --- Coordination with Contractor Internal and External Auditors
4-201 Introduction.............................................................................................. 406

4-202 Relationships with Contractor Internal and External Auditors ................ 406

4-202.1 Coordinated Audit Planning ................................................... 406

4-202.2 Access to DCAA Working Papers.......................................... 407

4-202.3 Coordinated Audit Matrix....................................................... 408

4-203 DCAA Response to Accounts Receivable Confirmation Requests from

CPA Firms ........................................................................................... 408

4-300 Section 3 --- Conferences with the Contractor (Entrance, Interim, and
Exit) on Audit Plans and Results
4-301 Introduction.............................................................................................. 410

4-302 Contractor Conferences - Entrance .......................................................... 410

4-302.1 General Procedures for Entrance Conferences ....................... 410

4-302.2 Special Considerations for Entrance Conferences on Major

Operations Audits ......................................................... 411

4-302.3 Contractor Notification Letter................................................. 412

4-302.4 Resident Working Arrangements for Entrance Conferences .. 413

4-303 Contractor Conferences - Interim ............................................................ 413

4-303.1 General Procedures for Interim Conferences.......................... 413

4-303.2 Incurred Cost Proposals – Interim Conferences...................... 415

4-303.3 Operations Audits – Interim Conferences............................... 415

4-304 Contractor Conferences -- Exit ............................................................... 415

DCAA Contract Audit Manual 4(2) August 19, 2011
Paragraph Page
4-304.1 General Procedures for Exit Conferences............................... 415

4-304.2 Price Proposals........................................................................ 416

4-304.3 Postaward Audits of Cost or Pricing Data for Possible

Defective Pricing .......................................................... 417

4-304.4 Incurred Cost Proposals .......................................................... 418

4-304.5 Operations Audits – Exit Conferences.................................... 418

4-304.6 Cost Accounting Standards Audits ......................................... 419

4-304.7 Litigation Support................................................................... 420

4-400 Section 4 --- Audit Working Papers
4-401 Introduction.............................................................................................. 421

4-402 General..................................................................................................... 421

4-403 Format and Contents of Working Papers ................................................. 422

Figure 4-4-1 Standard Working Paper Format and Indexing ............................ 430

Figure 4-4-2 Administrative Working Papers ................................................... 431

4-404 Working Papers - Agenda Sheet .............................................................. 432

4-405 Permanent File ......................................................................................... 432

4-406 Copies of Contractor Data in Working Papers......................................... 434

4-407 Computer-Aided Working Papers............................................................ 435

4-408 Computer-Aided Audit Applications ....................................................... 440

4-409 Supplemental Revisions to the Audit Working Papers after the Audit

Report is Issued.................................................................................... 441

4-500 Section 5 --- Using Information Technology (IT) in Contract Auditing
4-501 Introduction.............................................................................................. 444

4-502 Policy on Use of IT .................................................................................. 444

4-502.1 General Criteria for Using IT in Audit Applications .............. 444

4-502.2 Use of Contractor IT............................................................... 446

4-502.3 Cooperation with Internal and Independent Auditors............. 446

4-503 Organizational Support of Auditing Using IT ......................................... 446

4-503.1 Regional IS Auditors and Computer Specialists..................... 446

4-503.2 Technical Support Branch....................................................... 446

4-503.3 IT Related Training................................................................. 447

4-504 IT Audit Tools ......................................................................................... 447

4-504.1 Generalized Audit Software.................................................... 447

4-504.2 Application Software Tracing and Mapping........................... 447

4-504.3 Audit Expert Systems ............................................................. 448

4-504.4 Test Data................................................................................. 448

4-504.5 Utility Software ...................................................................... 448

4-600 Section 6 --- Audit Sampling and Other Analytical Procedures
4-601 Introduction.............................................................................................. 449

4-602 Audit Sampling ........................................................................................ 449

4-602.1 Sampling................................................................................. 449

DCAA Contract Audit Manual August 19, 2011 4(3)
Paragraph Page
4-602.2 Statistical and Nonstatistical Sampling................................... 450

4-602.3 Scope and Degree of Testing .................................................. 451

4-602.4 Use of Information Technology to Assist in Sample

Selection ....................................................................... 452

4-602.5 Sampling Applications............................................................ 452

4-602.6 Attributes Sampling ................................................................ 452

4-602.7 Variables Sampling................................................................. 453

4-602.8 Sampling Plan Design and Documentation ............................ 454

4-602.9 Sampling Guidelines............................................................... 460

4-603 Correlation and Regression Analysis ....................................................... 462

4-604 Improvement Curve Analysis .................................................................. 464

4-700 Section 7 --- Responsibilities for Detection and Reporting of Suspected
Irregularities
4-701 Introduction.............................................................................................. 468

4-702 Suspected Fraud and Unlawful Activity --- General................................ 468

4-702.1 General.................................................................................... 468

4-702.2 Auditor Responsibilities for Detecting and Reporting Fraud.. 469

4-702.3 Fraud Indicators and Audit Procedures for Uncovering

Fraud ............................................................................. 470

4-702.4 Procedures for Referring Suspicions....................................... 471

4-702.5 Audit Activi