Accession Number:

AD1105603

Title:

DCAA Audits: Allegations That Certain Audits at Three Locations Did Not Meet Professional Standards Were Substantiated

Descriptive Note:

Technical Report

Corporate Author:

GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC WASHINGTON DC United States

Personal Author(s):

Report Date:

2008-07-01

Pagination or Media Count:

80.0

Abstract:

The Defense Contract Audit Agency DCAA under the Department of Defense DOD Comptroller plays a critical role in contractor oversight by providing auditing, accounting, and financial advisory services in connection with DOD and other federal agency contracts and subcontracts. DCAA has elected to follow generally accepted government auditing standards GAGAS. These standards provide guidelines to help government auditors maintain competence, integrity, objectivity, and independence in their work. GAO investigated hotline complaints it received related to alleged failures to comply with GAGAS on 14 DCAA audits. Specifically, it was alleged that 1 working papers did not support reported opinions, 2 supervisors dropped findings and changed audit opinions without adequate evidence, and 3 sufficient work was not performed to support audit conclusions and opinions. GAO also investigated issues related to the quality of certain forward pricing reports. GAO investigators interviewed over 50 individuals, reviewed the working papers and related documents for 14 audits issued from 2003 through 2007 by two DCAA field offices, and reviewed documentation on audit issues at a third DCAA office. GAO did not reperform the audits to validate the completeness and accuracy of DCAAs findings. DCAA did not agree with the totality of GAOs findings, but it did acknowledge shortcomings with some audits and agreed to take corrective action.

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE