How Government Contractors Can Prepare for DCAA's New Focus on Business Systems

Abstract

In February 2019, the U.S. Government Accountability Office (GAO) released its report on monitoring and assessing Contractor Business Systems (CBS). Currently, the U.S. Department of Defense (DOD) has no system for monitoring contractor business systems assessment and results, nor is it able to track to cyclical time guidance for reassessment. The DOD has acknowledged this issue and is currently working to create an effective system. The report notes that the Defense Contract Audit Agency (DCAA) is behind in business system assessments. However, DCAA plans to use private CPA firms to focus on incurred cost audits so that they can concentrate more on performing business system audits over the next four years.