Government audits & investigations
Traditional financial statement audits conducted by independent CPA firms feel more like a trust but verify exercise. However, government audits and investigations are rigorously focused on rooting out noncompliance and irregularities, where “materiality is viewed narrowly. Government audits can occur at any time during the contract lifecycle, and often many times. Investigations can be triggered by a suspicion, an audit referral, or a whistle-blower. Government audits and investigations often make contractors feel as if they are guilty until proven innocent.
While no government audit or investigation is pleasant, they can be less painful and effectively managed through preparation and cooperation. Contractors should find and correct issues before the government comes knocking. They should also develop a deep understanding of the audit’s focus and relevant standards. These include Federal Acquisition Regulations (FAR), Cost Accounting Standards (CAS), Truth in Negotiations Act (TINA) or prevailing wage/benefit laws (SCA, DBA).
Find out more about how we help contractors to:
- Understand the audit
- Identify risk areas
- Manage the audit process
- Respond to and resolve audit issues
- Support investigations by the government
- Conduct internal forensic accounting and special investigations