defense contract audit

DCAA Audits for Federal Contractors: What Defense Contract Audits Look For and How to Prepare

The Defense Contract Audit Agency (DCAA) audits federal contractors for DoD and some civilian agencies. Audits examine accounting systems, cost proposals, incurred costs, and specific transactions. DCAA audit outcomes affect contract awards, billing, final cost settlement, and future work. Contractors pursuing DoD work need to understand DCAA audit types and prepare accordingly.