Activity Code 19408, Compliance Audit CAS 408, Version 5.8, dated May 2010

Master Document – Audit Program Activity Code 19408 Compliance Audit CAS 408 Version 5.8, dated May 2010 B-1 Planning Considerations Purpose and Scope 1. The purpose of CAS compliance auditing is to determine if the contractor's policies, procedures, and practices used to estimate, accumulate, and report costs on Government contracts and subcontracts comply with the requirements of CAS. CAS 408 establishes criteria for uniformity in the measurement of costs of vacation, sick leave, holiday, and other compensated personal absence for a cost accounting period; thereby increasing the probability that the measured costs are allocated to the proper cost objective. FAR 52.230-2, Cost Accounting Standards, requires the contractor to comply with the CAS 408 criteria. 2. The scope of this audit should be limited to the last completed contractor fiscal year. For efficiency, CAS compliance testing, if possible, should be performed concurrently with tests for compliance with FAR and contract terms. 3. This program is intended to provide for the proper planning, performance, and reporting on the contractor's compliance with CAS 408. The audit steps in the program should reflect a documented understanding between the auditor and the technical specialist and/or the supervisor as to the scope required to comply in an efficient and effective manner with generally accepted auditing standards and DCAA objectives. The program steps are intended as general ...