17600 - Audit Program - Financial Capability Audit

Master Document Activity Code 17600 Financial Capability Audit Version 9.0, dated May 2011 B-1 Planning Considerations Purpose and Scope The purpose of a financial capability audit is to determine if the contractor has adequate financial resources to perform on Government contracts in the near term. . Regulatory requirements provide that the Contracting Officer will make a determination of financial responsibility. As such, DCMA established its Financial Capability Group (FCG) to perform financial analysis including pre-award financial analysis, post award financial surveillance, and the monitoring of contracts receiving financing payments. Therefore, DCAA will perform financial capability audits only when requested by the contracting officer due to unique circumstances requiring DCAA audit assistance. This audit program contains steps for performing a financial capability audit when requested by the contracting officer due to unique circumstances requiring DCAA audit assistance. Auditors should coordinate with the contracting officer to ascertain these unique circumstances requiring a DCAA financial capability audit and tailor the audit scope and procedures accordingly. References 1. FAR 9.104-1, General Standards 2. DFARS 232.072, Financial Responsibility of Contractors 3. SAS 59, The Entity's Ability to Continue as a Going Concern 4. CAM 14-300, Assessing A Contractor’s Financial Capability 5. FASB 95, Statement of Cash Flows ...