Audit Backlog Milestone Won't Stop DOD Contractor Scrutiny

Law360 (June 20, 2019, 9:48 PM EDT) -- The Defense Contract Audit Agency says it has finally eliminated its yearslong backlog for incurred cost audits, but attorneys claim hitting that milestone is unlikely to reduce contractors' overall audit burden, and instead will simply shift the focus to other forms of audit that the agency has neglected.

In its fiscal year 2018 report to Congress, recently made public, the DCAA said it had "successfully eliminated" its backlog of incurred cost audits, after closing out 8,492 audit years — covering $392.2 billion in examined value — in 2018. An incurred cost audit is a review of a contractor's allowed cost claims for prior...

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