DCAA's Focus On Internal Audits Could Incite Legal Battles

Law360, New York (August 28, 2012, 7:43 PM EDT) -- Facing criticism for failing to make use of contractors' internal audits, the Defense Contract Audit Agency has adopted new policies for requesting such records that could put it on a collision course with a pair of influential Fourth Circuit decisions that limited the agency's ability to subpoena records, according to attorneys.

The DCAA published new guidance Aug. 14 indicating that it is preparing to seek more records from contractors' own internal audits when evaluating companies. The new guidance requires auditors to establish a process and a...
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