Activity Code 19415, Compliance Audit CAS 415, Version 6.2, dated May 2010

Master Document – Master Document Activity Code 19415 Compliance Audit CAS 415 Version 6.2, 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 415 establishes criteria for the measurement of the cost of deferred compensation and the assignment of such cost to cost accounting periods. This standard is applicable to the cost of all deferred compensation except for compensated personal absence and pension plan costs which are covered in other cost accounting standards. FAR 52.230-2, Cost Accounting Standards, requires the contractor to comply with the CAS 415 criteria (48 CFR 9904.415). FAR 31.205-6(k) makes CAS 415 applicable to all contracts subject to the FAR Part 31 cost principles, even contracts which are not CAS-covered or subject only to modified coverage. 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. The auditor and the technical specialist and/or the supervisory auditor should agree upon the level of transaction testing in setting the scope of the audit. This understanding should be documented in ...