Are you up to date with the DCAA Contract Audit Manual?

The DCAA Contract Audit Manual (CAM) is possibly one of the best documents available to the public to help companies understand their responsibility as defense contractors.  Although DCAA provides an Information for Contractors guide, we’ve found that using the manual that DCAA uses to audit provides a wealth of information not found elsewhere.

The Forward of the CAM states “The DCAA Contract Audit Manual (DCAA Manual 7640.1) is an official publication of the Defense Contract Audit Agency (DCAA). It prescribes auditing policies and procedures and furnishes guidance in auditing techniques for personnel engaged in the performance of the DCAA mission.”

Many people have already been using the CAM as a tool to learn from, build policy with, and  to use for audit prep.  However, did you know that many critical parts of the CAM were updated during the last quarter of calendar year 2010? Of the 20 active sections of the CAM, 14 sections are updated. Don’t bank on a hard copy print out from last year otherwise you may be working with the wrong information.  Typically we don’t think of the government as conducting much business during the latter half of a calendar year, but DCAA was busy. Here are the sections of the CAM that had the most recent updates:

  • Chapter 3 – Audit Planning (updated 12/31/10)
  • Chapter 4 – General Audit Requirements (updated 12/31/10)
  • Chapter 5 – Audit of Policies, Procedures, and Internal Controls Relative to Accounting and Management Systems (updated 11/9/10)
  • Chapter 6 – Incurred Costs Audit Procedures (updated 12/17/10)
  • Chapter 7 – Selected Areas of (updated costs (12/2/10)
  • Chapter 8 – Cost Accounting Standards (updated 12/20/10)
  • Chapter 9 – Audit of Cost Estimates and Prices Proposals (updated 12/21/10)
  • Chapter 10 – Preparation and Distribution of Audit Reports (updated 11/30/10)
  • Chapter 11 – Audit of Contractor Compliance with Contract Financial Management Requirements (updated 12/31/10)
  • Chapter 12 – Auditing Contract Termination, Delay/Disruption, and Other Price Adjustment Proposals or Claims (updated 11/30/10)
  • Chapter 14 – Other Contract Audit Assignments (updated 12/22/10)
  • Chapter 15 – Other DCAA Functions (updated 11/30/10)
  • Appendix A – Contract Cost Principles and Procedures (updated 12/3/10)
  • Appendix E – Graphic and Computational Analysis Techniques (updated 12/31/10)

Chapters 4, 5, 6, 9 and 11 are very good reads, even if you’re not an accounting or finance professional. Here is the link to the DCAA CAM for your reading pleasure.

Under Publications on the left menu bar click on the second bullet, Contract Audit Manual.


About Stephanie Amend

Stephanie is the Principal and CEO of Arrowhead Solutions, LLC, a solutions firm specializing in assisting established small businesses be successful government contractors.

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