Generally Debarments, Suspensions & Referrals (DFARS Subpart 209.4) is imposed as a sanction for conduct indicating that an non-Federal auditor is not fit to practice auditing. Substandard work by a non-Federal auditor may warrant referral for sanctions by the appropriate State licensing authorities or suspension and debarment by the contracting authority. A referral would be appropriate when work has significant inadequacies that make the audit so pervasively deficient that users cannot rely on it.

Website: FAR Subpart 9.4 “Debarment, Suspension, and Ineligibility”
Website: DFARS Subpart 209.4 “Debarment, Suspension, and Ineligibility”

Criteria on what constitutes a referral condition to state licensing authorities and the procedures to be followed in making a referral are set forth in President’s Council on Integrity and Efficiency (PCIE) Statement No. 4. Procedures to be followed by DoD officials for debarment or suspension are outlined in FAR Subpart 9.4 and in DFARS Subpart 209.4 of Reference (w).

The Federal Acquisition Regulations (FAR) provides guidance on cause for debarments or suspension, procedures to be followed in investigation and referral for debarment and suspension actions, the period of debarment and suspension, reporting requirements relative to debarment and suspension, and identification of debarment and suspending officials.

The Office of the Assistant Inspector General for Audit Policy and Oversight, IG (OAIG APO) is the only official authorized to make referrals for sanctions by appropriate licensing authorities. The DoD audit organizations should take the steps to resolve disagreements on work or product adequacy with the non-Federal auditor prior to proposing a referral. If the circumstances justify a referral, the audit organization shall forward the appropriate documentation and a memorandum with the reason for the proposed referral action to the OAIG APO.

AcqLinks and References:

Updated: 9/1/2017

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