10100 - Audit Program - Incurred Cost - Concurrent Auditing Major and Non-Major

Master Document - Audit Program Activity Code Incurred Cost – Concurrent Auditing Major & Non-Major Version 4.5, dated January 2010 B-1 Planning Considerations Purpose and Scope This program provides a logical sequence to the effort required to perform a concurrent incurred cost audit. It should reflect a mutual understanding between the auditor and supervisor as to the scope required to meet auditing standards and DCAA objectives. The steps in the program are intended as general guidance and should be expanded or eliminated as necessary to fit the audit. The audit program should serve as a control document covering the entire incurred cost audit of a contractor fiscal year. Those portions of the audit which are covered in other assignments should be referenced at the appropriate place in this program. Audit programs in other assignments should be cross-referenced back to this assignment. 1. The purpose of incurred cost auditing is to determine whether costs charged to auditable Government contracts are allowable, allocable, and reasonable in accordance with the contract and applicable Government acquisition regulations. 2. Concurrent auditing procedures are intended to expedite the process of establishing final indirect cost rates, thus assisting contracting officers in closing out contracts in a more timely fashion. The timing for performing individual steps (i.e., before or after the receipt of the certified proposal) is a matter of ...