Fraud Indicators Provide Valuable Lessons For Contractors

Law360, New York (August 14, 2015, 10:41 AM EDT) -- On July 29, 2015, the Office of the Inspector General for the U.S. Department of Defense published on its website two new "Contract Audit Fraud Scenarios and Indicators" for audits related to defective pricing and falsification of documents. While the fraud indicators in these specific scenarios are designed to get auditors at the Defense Contract Audit Agency thinking about under what circumstances they might make a fraud referral, many of the fraud indicators are general in nature and could be found in any type of audit. Government contractors should be aware of the facts and circumstances that might arise in a government audit that will require the auditor to make a fraud referral to an investigative agency....

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