The Defense Contract Audit Agency (“DCAA”) recently made public its Fiscal Year (FY) 2018 Report to Congress (“Report”), which, among other things, provides an update on its incurred cost audits and highlights DCAA’s industry outreach activities. Although the Report touts DCAA’s elimination of the incurred cost audit backlog, DCAA acknowledges that there still is a
The 2016 National Defense Authorization Act prohibits the Defense Contract Audit Agency from providing “audit support” to any non-DOD agency until the Secretary of Defense certifies that DCAA has reduced its backlog of incurred cost audits to 18 months or less, a restriction that could cause some disruption for contractors when DOD contracts are not
Due to the scrutiny and criticism DCAA received from the Government Accountability Office in 2008 and 2009, DCAA took a number of steps to address the problems identified by GAO, many of which were intended to address the finding that DCAA auditors lacked independence. The emphasis in resulting DCAA audit guidance on auditor independence has created