Activity Code 19414, Compliance Audit CAS 414, Version 5.6, dated November 2009

Master Document – Audit Program Activity Code 19414 Compliance Audit CAS 414 Version 5.7, dated March 2011 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 414 establishes the criteria for measuring and allocating an appropriate share of the cost of money, which can be identified with the facilities employed in a business. FAR 52.230-2, Cost Accounting Standards, requires the contractor to comply with the CAS 414 criteria. FAR 31.205-10 makes CAS 414 applicable to all contracts, even contracts which are not CAS-covered or subject only to modified CAS coverage. Auditors should ensure that proposed or claimed cost of money, when significant, are in compliance with the provisions of CAS 414. 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 414. The audit steps in the program should reflect a documented understanding between the auditor and the CAS technical specialist and/or the supervisor as to ...