Compliance Audit CAS 403

Master Document – Audit Program Activity Code 19403 Compliance Audit CAS 403 Version 6.10, 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 403 establishes criteria for the allocation of home office expenses to the segments of the organization on the basis of a beneficial or causal relationship. CAS 403 does not provide guidance for the allocation of IR&D/B&P costs of a home office. CAS 403.40(b)(5) states that IR&D/B&P costs shall be allocated in accordance with CAS 420. FAR 52.230-2, Cost Accounting Standards, requires the contractor to comply with the CAS 403 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 403. The audit steps in the program should reflect a documented understanding between the auditor and supervisor as to the scope required to comply in an efficient and effective manner with generally accepted auditing standards and DCAA objectives. The program ...