Full Disclosure of Disciplinary Actions Required by CPA Firms Engaged in Government Auditing

Last month, the Defense Department issued a “Class Deviation” that affects contractors performing contract audits for the Department. Contracting officers are now required to use a new clause (described later) when contracting with accounting firms providing financial statement auditing or audit remediation services to the Defense Department in support of audits. Or, in other words, incurred cost audits that were once the sole bailiwick of DCAA (Defense Contract Audit Agency).

Source: PNWC’s Government Contracting Update: Full Disclosure of Disciplinary Actions Required by CPA Firms Engaged in Government Auditing