The Physical Configuration Audit (PCA) examines the actual configuration of an item being produced and is conducted around the time of the Full-Rate Production Decision. It verifies that the related design documentation matches the Configuration Item (CI) as specified in the contract and confirms that the manufacturing processes, quality control system, measurement, and test equipment, …
A Functional Configuration Audit (FCA) examines the functional characteristics of the configured product. It verifies that the product has met the requirements specified in its Functional Baseline documentation approved at the Preliminary Design Review (PDR) and Critical Design Review (CDR). It has to do more with systems engineering and program management than official auditing. The …
The DoD Inspector General (IG) is responsible for gaining access to auditing records and data. They shall coordinate access for DoD Component, non-DoD Federal, and contracted auditors to other DoD Components for any audit service that requires access to records or other information in order to avoid duplication and ensure consistency. There are three …
Government Auditing Standards (the “Yellow Book”) contains standards for audits of government organizations, programs, activities, and functions, and of government assistance received by contractors, nonprofit organizations, and other non-government organizations. These standards often referred to as generally accepted government auditing standards (GAGAS), are to be followed by auditors and audit organizations when required by law, …
In performing audit services, DoD auditors should: [1] Exercise their professional judgment and conduct audit services with reasonable care and professional skepticism in accordance with Generally Accepted Government Auditing Standards (GAGAS). Document key decisions to reflect the progression of the work performed. Obtain access to records expeditiously and without delay to accomplish announced audit …
The cognizant DoD audit organization should develop appropriate guidelines for their staff to monitor contracted audit performance and provide input to the contracting officer for contractor interim and final performance reporting, deliverables, and payment. Monitoring has been identified as the most effective way to ensure that an audit organization receives both the type and …
Follow-up on agreed-upon audit recommendations/reports to “other” DoD Components is the responsibility of the reviewing organization officials that are responsible for follow-up activity and consistent with DoD Instruction 7650.02, “GAO Reviews and Reports”. The results of such activity on the “other” DoD Component’s findings and recommendations should be included in the reviewing organization’s semiannual …
The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for Congress. Often called the “congressional watchdog,” GAO investigates how the federal government spends taxpayer dollars. They support congressional oversight by: Auditing agency operations to determine whether federal funds are being spent efficiently and effectively Investigating allegations of illegal and improper …
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 …
In the detection and reporting of potential fraud and illegal acts, DoD auditors should: [1] A. Maintain sufficient knowledge of the characteristics and indicators of fraud, techniques used to commit fraud, and the types of fraud associated with the activities being audited. Such knowledge is necessary for the auditor to be reasonably effective in …
