Audit Readiness Support
Audit Readiness Support
As a government contractor, your firm may undergo several different types of audits of their accounting and financial systems. While some audits may not be as involved as others, all audits can be stressful and potentially harmful without the proper preparation.
We will assist you, and also engage the auditors for you if you desire. Our team has experience with DCAA procedures and audits. We provide multiple audit support services:
We can help your firm set up systems that ensure that you meet the required criteria. DCAA will determine if your company’s accounting system for accumulating costs meets the government’s requirement when awarding a contract. It is up to you to make the necessary adjustments to your accounting system to make it acceptable. If there is a failure, once you have followed through on the auditor’s recommendations you will need to contact the DCAA so they can perform a follow-up audit.The time between correcting the failures and DCAA follow-up could cost you a contract and prevent your firm from growing.
Before you are awarded a major contract, DCMA will look at certain documents to include cash flow forecasts, sales pipeline, financial history, financial reports given to stockholders and banks, SEC filings, any loan/financing agreements with statements showing your good standing, and employee federal payroll tax returns. This is done to determine if your company is financially viable to complete the contract.
After fully reviewing this information the auditor will make their recommendation of whether they feel that your company is financially stable enough to fulfill the contract. If your company is considered not to be financially viable, you will be notified immediately and informed of any deficiencies.This can be a time consuming process and you need an experienced accountant like JS Morlu to help you go through the process.
A Post-Award audit is usually performed after the contractor has been performing under a cost-type contract for a period of time, approximately six months. This follow-up audit is also requested by the Contracting Officer.This audit involves more detailed testing of transactions. We can help you prepare for any post-award audits, and we also provide Noncompliance Corrective Action Assistance.
Incurred Cost Reports are required to be submitted to the government 6 months after the end of the contractor’s fiscal year for cost reimbursable type contracts.The government will audit these reports as well. JS Morlu can help you prepare your Incurred Cost Report, and also help you through an audit of this report.
Occasionally, the government contracting officer requests that DCAA reviews proposal costs to verify that they are reasonable and allocable. This review, or audit, is often conducted as an onsite visit by a DCAA auditor who asks for information (such as indirect rates backup). The audit typically causes great concern for our clients. Unless we can intercede on their behalf, this may result in the decrease in the price of our client’s proposal. We have experience working with the DCAA.
DCAA often conducts voucher audits to determine the accuracy of the invoices submitted to the government. They will review the invoices to make certain they are in accordance with the contract specifications.The audit process will track the accounting transactions from the source documents to the invoices and payments to ensure the process is complete and accurate. We can guide you in preparing your invoices and working with DCAA on your behalf.
Contractors who charge labor hours to Cost Reimbursable Contracts will have an annual timesheet check performed by DCAA. This unscheduled visit by a DCAA auditor is to verify that proper timesheet procedures are being followed. The auditor will first review the timesheet procedures with the company’s financial personnel. Randomly selected employees will then be asked how they complete their timesheet,how errors are corrected, who tells them what charge codes to use and other questions. We can assist you and your employees understand the process and pass this type of audit.
The government wants to know how your company is spending taxpayers’ money. Contractors’ Purchasing Systems Reviews (CPSR) is the means the government uses to measure how efficiently and effectively a contractor spends government funds and evaluates compliance with government subcontracting policies, regulations and laws. The Administrative Contracting Officer (ACO) will withhold or withdraw approval of a company’s purchasing system when there are major weaknesses or when your company is unable to provide sufficient information upon which to make an affirmative determination. JS Morlu can assist you to become and remain compliant.
Inspector General’s usually conduct audits of contracts and programs paid for by the U.S. Government. IG audits can be just as daunting and intimidating as audits by DCAA. We are particularly experienced with audits conducted by the USAID Inspector General. We have provided audit readiness support and helped clients successfully complete USAID Inspector General’s audit and financial reviews. Don’t go into an IG audit without an experienced hand assisting you.
- Estimating System
- Material Management and Accounting System (“MMAS”)
- Property Management System
- Earned Value Management System (“EVMS”)
Facing a DCAA /DCMA or an IG Audit? Contact JS Morlu Now!
- Audit and Attest (A&A) Services
- Business Advisory Practice
- Specialized Healthcare Audit Practice
- CFO Services
- Forensic and Anti-corruption Practice
- Due Diligence Practice
- Accounting Software Support
- Tax Practice
- Professional Training Practice
- Transportation Accounting & Audits
- Business Valuations
- Audit Readiness Support
- Regulatory Compliance
- Review, Compilation & Preparation
- Business and Personal Tax Returns
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JS Morlu, LLC
2200 Opitz Blvd, Suite 200
Woodbridge, VA 22191,
Email: [email protected]
Hours of Operation:
Monday – Friday, 9 AM – 5 PM