Defense Contract Audit Agency: Additional Guidance Needed Regarding DCAA's Use of Companies' Internal Audit Reports
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
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DCAA audits play a critical role in oversight of companies that provide goods and services to the Department of Defense. These defense companies also conduct their own internal audits. Section 832 of the NDAA for Fiscal Year 2013 Pub. L. No.112-239 required DCAA, among other things, to revise its audit guidance on documenting its requests for defense contractors internal audit reports and ensuring the reports are used only for evaluating and testing the strength of internal audit controls. The act required GAO to assess the revised guidance. This report assesses the extent to which DCAA s revised guidance 1 complied with the act, and whether selected requests for company internal audit reports were documented in accordance with requirements, and 2 contains safeguards to help ensure that companies internal audit reports are used only for authorized purposes. GAO compared DCAA s revised guidance to the provisions of the act and examined a nongeneralizable, random sample of eight recent DCAA requests for companies internal audits.
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