Section 809 Panel - Recommendation #10 - Replace System Criteria from DFARS 252.242-7006, Accounting System Administration, with an Internal Control Audit to Assess the Adequacy of Contractor's Accounting Systems

Abstract

The Department of Defense (DoD) is not obtaining timely assurance that internal controls for defense contractors' accounting systems are properly designed and functioning. Ensuring effective internal controls is one of the most efficient ways to protect the government's interest, reduce risk, and improve performance. DoD should build on the established and well-understood internal control audit framework provided by the Sarbanes-Oxley Act (SOX) to cover DoD's contractor accounting system requirements.