HomeCustomersGuidanceMRDS - Audit Guidance Memos


These memos provide audit guidance that has not yet been incorporated into the CAM. In addition to consulting the CAM, check these memos for the latest guidance.


Date MRD Number Subject CAM Ref 5-Digit Activity Code
06/19/2020 20-PAS-003 Audit Guidance on Implementing the GAGAS 2018 Revision NA NA
04/10/2020 20-PAS-001(R) Audit Alert on Limited Contractor Access Due to COVID-19 NA NA
12/2/2019 19-PIC-005(R) Revised Policy and Procedures for Sampling Incurred Cost Proposals NA NA
07/19/2019 19-PAS-003(R) Audit Guidance on Using Materiality in Incurred Cost Audits NA NA
05/14/2019 19-PAC-002(R) Audit Alert on Identifying Expressly Unallowable Costs NA NA
11/27/2018 18-PSP-006(R) Audit Guidance on Revised Treatment of Incomplete or Inadequate Prime Contractor Cost or Price Analyses NA NA
10/19/2018 18-PIC-005(R) Audit Alert on Tailoring Standard Audit Program Steps NA NA
2/15/2018 18-PSP-002(R) Audit Alert on Auditing Long Term Agreements (LTAs) NA NA
1/29/2018 18-PIC-001(R) Audit Alert on 2018 NDAA Section 803 Timeliness Requirement for Incurred Cost Adequacy Reviews and Audits NA NA
11/21/2017 17-PAC-008(R) Audit Guidance on Application of DFARS 231.205-18, Independent Research and Development and Bid and Proposal Costs NA NA
9/6/2017 17-PSP-007(R) Audit Alert on Requirement for Prime Contractor Cost and Price Analyses NA NA
9/30/2016 16-PPD-008(R) Update - Audit Guidance on the Impact of the National Defense Authorization Act on DCAA's Audit Support to Non-Defense Agencies NA NA
6/30/2016 16-PSP-007(R) Audit Alert on Handling Incurred Cost Proposals Using a Blending Approach of Compensation Caps Proposal Less Than $250 Million in ADV NA 10100
2/19/2016 16-PSP-005(R) Audit Alert on DCMA Implementation Guidance on Blended Compensation Caps NA NA
2/11/2016 16-PPD-004(R) Updated Audit Guidance on the Treatment of Overdue Indirect Rate Proposals NA 10100
2/3/2016 16-PPS-003(R) Audit Alert on Updated Independent Reference Review Checklist and Procedures NA NA
10/28/2015 15-PSP-011(R) Audit Alert on DCMA Requests for Tailored Audit Support of Forward Pricing Rate Proposals NA 23000
9/30/2015 15-PPD-006(R) Audit Guidance on Revised Post Year-End and Corporate Incurred Cost Audit Programs NA 10100
2/12/2015 15-PPS-003(R) Audit Alert Regarding Including the Contractor's Address and Commercial and Government Entity (CAGE) Code on Audit Reports NA NA
9/19/2014 14-PAC-016(R) Audit Alert on Evaluating the Adequacy of Cost Impact Proposals NA NA
9/12/2014 14-PPS-015(R) Audit Guidance on Revised Policies and Procedures for Testing of Paid Vouchers NA 11015
8/7/2014 14-PAC-013(R) Audit Guidance on Reporting a CAS Noncompliance in an Incurred Cost Audit and a Forward Pricing Audit 6-708.1e, 6-708.3b, 6-709.2 NA
6/26/2014 14-PAC-010(R) Audit Guidance on Changes to Cost Accounting Standard Related Audits 8-200 & 8-300 19100
5/22/2014 14-PPD-008(R) Audit Alert on Labor Qualifications for Time and Material Contracts NA NA
4/24/2014 14-PAC-005(R) Audit Guidance on Allowability of Independent Research and Development under January 2012 Change to DFARS 231.205-18(c)(iii)(C) 7-1503 10100, 23000
4/21/2014 14-OTS-015(R) Audit Management Guidance on the Department of Defense (DoD) Contractor Disclosure Program 4-707 NA
4/7/2014 14-PPD-004(R) Audit Alert on Impact of Changes to Compensation Limitations on Forward Pricing Audits NA NA
2/3/2014 14-PPD-002(R) Treatment of Delinquent Final Indirect Rate Proposals 6-707.2 10100
1/30/2014 14-PPS-001(R) Audit Alert - Risk Factors Associated with Grouping, Pegging and Distribution within SAP Software NA NA
8/26/2013 13-PSP-020(R) Introduction of the New DFARS Proposal Adequacy Checklist 15-304.4c, 9-103.1b 21000, 27010
7/30/2013 13-PPS-015(R) Audit Alert on Access to Contractor Employees NA NA
7/18/2013 13-PPD-012(R) Audit Alert – Alternate Procedures for Labor When Real-Time Testing of Labor not Performed (MAAR 6) NA NA
9/27/2012 12-PSP-024(R) Revised Audit Program for Forward Pricing Rate Proposal Audits and Issuance of an Adequacy Checklist for Forward Pricing Rate Proposals 9-703.14 & 9-1200 23000
5/2/2012 12-OTS-018(R) Audit Alert - Determining Sample Size for Statistical Sampling for Variables 4-602.8f(1) NA
4/24/2012 12-PAS-012(R) Audit Guidance on Auditing Contractor Business Systems and Contractor Compliance with DFARS 252.242-7006, Accounting System Administration 5, 10-400 11010, 11070
9/30/2011 11-PPD-018(R) Audit Guidance on Discontinuance of Purchasing System Internal Control Audits 5-600 NA
7/14/2011 11-OTS-034(R) Audit Management Guidance on DoD Contractor Disclosure Program 4-707 NA
6/10/2011 11-OTS-027(R) Guidance on Curvilinear Regression and Adjusted R2in EZ-Quant Regression Analysis Version 1.2.0. Appendix E NA
6/2/2011 11-OTS-024(R) Audit Guidance on Reporting Cost Avoidance for Operations Audits 5-812.4a, 10-408.1a, 14-504 NA
1/18/2011 11-PAC-001(R) Audit Guidance on DCMA/DCAA Cost Recovery Initiative (CRI) and Related Rough Order of Magnitude (ROM) Calculation for Unresolved CAS Cost Impact Issues 8-302, 8-303, 8-504 19100, 19200, 19500
1/3/2011 11-OTS-001(R) Guidance on Variable Sampling Policy 4-600, Appendix B, 10-000 NA
12/6/2010 10-PAC-034(R) Audit Guidance on Impact of Codification of Generally Accepted Accounting Principles (GAAP) 4-503.2(c), 5-911.4, Various Sections in Chapter 7 13010
10/20/2010 10-OTS-069(R) Guidance on Attribute Sampling Policy 4-600, Appendix B, 10-000 NA
3/22/2010 10-PAC-010(R) Audit Guidance on Revision to FAR 31.205-46(b) and (c) - Limiting Airfare to the Lowest Airfare Available to the Contractor 7-1002, 7-1003 NA
3/2/2010 10-PSP-009(R) Audit Guidance on Inter-Organizational Transfers Included in Contractor Forward Pricing Proposals 9-105, 10-305.8c & d 21000, 27000
5/1/2007 07-PAC-013(R) Audit Guidance on the Impact of the Pension Protection Act of 2006 9-703.8b, 7-606, 8-412b 19412
8/28/2006 06-OWD-039(R) Audit Management Guidance on Capturing Audits of Corporate and Intermediate Home Offices, Including Shared Services, in DMIS/Reimbursables NA NA
8/15/2006 06-PAC-028(R) Audit Guidance on Revised FAR 31.205-11 Limiting the Allowable Depreciation Costs for Assets Reacquired Subsequent to a Sale-and-Leasebck Transaction 7-207, 7-4XX 10100, 21000, 23000, 27000, 28000
12/19/2005 05-PAC-074(R) Audit Guidance on Revision to FAR 31.205-35, Relocation Costs 7-1004.5 NA
11/22/2005 05-OWD-062(R) FY 2006 Audit Management Guidance for Iraq Reconstruction NA 10180
8/25/2005 05-PAC-055(R) Audit Guidance on Including Inactive Employees in the Calculation of CAS 413.50(c)(12) Pension Segment Closing Adjustments 8-413.3 19413
6/6/2005 05-PAC-041(R) Audit Guidance on Revised FAR Part 30, Cost Accounting Standards Administration, and Related Contract Clause and Solicitation Provisions NA NA
7/23/2004 04-PAC-040(R) DCMA/DCAA Joint Guidance Implementing the Teledyne Decision on CAS 413.50(c)(12) Segment Closing Adjustments 8-413.3 19413
4/12/2004 04-PPD-023(R) Audit Guidance on Compensation Costs for Contractor Employees Located in Foreign Countries and Performing Work under Iraq Reconstruction Contracts 5-808 13020, 10100, 10110, 10160, 10170, 21000, 23000, 25000, 27000, 28000, 42000, 42097, 42098, 42099
4/9/2004 04-PAC-022(R) Audit Guidance on Review of Orders under GSA Schedule Contracts NA 10100, 10110, 10160, 10170, 21000