MRD 08-OAL-073(R) - Audit Guidance Revision to DCAA’s Role in Source Selection Evaluation Boards

DEFENSE CONTRACT AUDIT AGENCY DEPARTMENT OF DEFENSE 8725 JOHN J. KINGMAN ROAD, SUITE 2135 FORT BELVOIR, VA 22060-6219 IN REPLY REFER TO OAL 730.3.B.2.4 November 10, 2008 08-OAL-073(R) MEMORANDUM FOR REGIONAL DIRECTORS, DCAA DIRECTOR, FIELD DETACHMENT, DCAA HEADS OF PRINCIPAL STAFF ELEMENTS SUBJECT: Audit Guidance Revision to DCAA’s Role in Source Selection Evaluation Boards (SSEB) and Providing Financial Liaison Advisory Services Effective September 12, 2008, DCAA will no longer be a member of SSEBs. DCAA will continue to provide audit and financial advice related to SSEBs as discussed in this memorandum. Effective November 23, 2008, Financial Liaison Advisory (FLA) services will be provided ONLY by officially assigned FLAs reporting to Headquarters, Operations, Audit Liaison Division (OAL). FLAs currently reporting to the Field Detachment will be reassigned to OAL. Generally Accepted Government Auditing Standards (GAGAS) prohibit DCAA from auditing its own work or providing nonaudit services in situations where the nonaudit services are significant or material to the subject matter of audits (GAGAS 3.22). These standards also require audit organizations to be free from external impairments to independence both in appearance and in fact (GAGAS 3.10). To avoid any potential independence concerns, the Executive Steering Committee in September 2008 decided that DCAA will no longer be members of any new SSEBs. ...