Internal Control Audit Planning Summary (ICAPS)

Overview
Accreditation

Overview

A special two day program for contract professionals on the overall implications of ICAPS and internal control audits.

What contractors must know about the Internal Control Audit Planning Summary (ICAPS) Audit Procedures.

• ICAPS Explained

• Auditor’s Assessment of Control Risk

• How to Perform Risk Assessments

• Adequacy of Internal Controls

• Best Practices for Adequate Systems

• ICAPS Impacts on Related Contract Audits

• Understanding DCAA Audit Guidance

• Contending with ICAPS Audits

This new two-day course explains how contractors can achieve, document, maintain, and manage internal business systems controls to comply with Government Contract requirements and sound business practices. The Defense Contract Audit Agency (DCAA) has established policies and procedures for auditor use that summarize the internal control objectives and activities that contractors should have in place. Systems that significantly impact costs must be audited periodically based on a documented risk assessment. This course examines these templates, includes best practice examples for adequate systems, and provides contractors with an internal controls self-assessment methodology—in addition to outlining how to meet their internal control requirements.

The learning objectives for this course include an explanation and understanding of:

• The nature and intent of ICAPS compliance requirements

• Interrelationships between the accounting and other related systems subject to ICAPS

• Indicators of risk/vulnerability and potential noncompliance in business systems subject to ICAPS

• Business system adequacy qualities and government oversight approaches

• Techniques for achieving and maintaining compliant internal business system

• Suggested steps to prepare for ICAPS audits

The course instructors will outline ICAPS audit approaches, procedures, and techniques that auditors use to conduct ICAPS reviews. Instructors will provide insight into the audit process allowing contractors to take proactive self-governance initiatives. Open to all contract professionals, this course will benefit those who conduct internal compliance audits and oversight reviews as well as contractors updating existing systems to fulfill regulatory compliance requirements.

We look forward to your participation.

*SPECIAL OFFER for COST IMMERSION WEEK*

Register for this course and Government Contract Audits: Dealing with Auditors and Mitigating Audit Risks, or any other second course for only $1500!

Agenda

1. ICAPS Basics Explained

a. ICAPS Information/Communications

b. Auditor’s Assessment of Control Risk

c. Impact on Related Audit Efforts

d. The ICAPS Form

e. Materiality/Sensitivity

f. Adequacy of Internal Controls

g. External/Internal Factors

h. Flash Reports

2. ICAPS Impact on the Scope of Other Audits

a. Contract Pricing

b. Defective Pricing

c. Incurred Material Costs

d. Incurred Labor Costs

e. Incurred Direct/Other Direct Costs

f. Contract Reporting

g. Billings

h. Closeouts

i. Financial Capability

j. Cost Accounting Standards

3. Audit of Internal Controls—Control Environment and

Overall Accounting System Controls

a. Audit Objectives

b. Scope of Audit

c. Integrity and Ethical Values

d. Board of Directors or Audit Committee

e. Organizational Structure

f. Assignment of Authority/Responsibility Impact on Control

Environment

g. Financial Capability

h. Accounting System (Control Environment)

i. Overall Accounting Controls

j. Internal Control Reporting

4. Audit of Information Technology General System Controls

a. Audit Objectives/Scope

b. IT Environments

c. Independent Management Reviews

d. Organization

e. Software Acquisition, Development and Modification

f. IT Computer Operations

g. Data Processing Security

h. Internal Control Reporting

5. Audit of Contractor Budget and Planning System Internal

Controls

a. Budgeting and Planning Concepts

b. Audit Objectives/Scope

c. Functional Organizational

d. Strategic or Long-Range Goals

e. Budget and Planning Preparation

f. Budget Performance and Measurement

g. Budget Performance-Revisions

h. System/IT System

i. Audit Results

6. Audit of Purchasing System Internal Controls

a. Policy/Objectives/Scope

b. Purchasing Controls

c. Compliance Audits, Training, Policies and Procedures

d. Purchasing System—Contract Clause Flow Down

e. Purchasing Management and Administration

f. Purchasing Source Selections

g. Pricing/Cost Analysis and Negotiated Purchases

h. Subcontract Award and Administration

i. Purchasing System—IT Internal Controls

j. Internal Control Reporting

7. Audit of Material Management and Accounting System

Internal Controls

a. Policy/Objectives/Scope

b. System Description (MMAS Standard 1)

c. Material Requirements (MMAS Standard 2)

d. System Monitoring (MMAS Standard 3)

e. Audit Trail (MMAS Standard 4)

f. Physical Inventories (MMAS Standard 5)

g. Material Transfers (MMAS Standard 6)

h. Costing of Material Transactions (MMAS Standard 7)

i. Inventory Allocations (MMAS Standard 8)

j. Commingled Inventories (MMAS Standard 9)

k. Internal Audits (MMAS Standard 10)

l. MMAS—IT System Internal Controls

m. Results/Disposition

8. Compensation System Internal Controls

a. Policy/Objectives/Scope

b. Management Reviews of the Compensation System

c. Evaluation of Organization and Assignment of Responsibility

d. Evaluation of Policies and Procedures for Non-Bargaining Unit

e. Training

f. Compensation System—IT System Internal Controls

g. Compensation System Review and Audit Results

h. Compensation System Review and Audit Report

9. Audit of Labor System Internal Controls

a. Policy/Objectives/Scope

b. Labor System Management Compliance Audits

c. Review of Employee Awareness Training

d. Labor System Authorization/Approvals

e. Evaluation of Timekeeping

f. Evaluation of Labor Distribution

g. Audit of Labor Cost Accounting

h. Review of Payroll Preparation and Payment

i. Review of Labor Distribution, Transfers, and Adjustments

j. Labor System—IT System Internal Controls

k. Internal Control Reporting

10. Audit of Indirect and Other Direct Cost System Internal

Controls

a. Policy/Objectives/Scope

b. Compliance Reviews

c. Trained Employees

d. Indirect and Other Direct Costs Preparation and Submission

e. Unallowable Costs Screening and Segregation

f. Allocability Policies, Procedures, and Controls

g. Indirect/ODC System—IT System Internal Controls

h. Internal Control Reporting

11. Audit of Billing System Internal Controls

a. Policy/Objectives/Scope

b. Management Compliance Reviews

c. Billing System Policies and Procedures

d. Implementation of Billing System Policies and Procedures

e. Billing System—IT System Internal Controls

f. Internal Control Reporting

12. Audit of Estimating System Internal Controls

a. Policy/Objectives/Scope

b. Estimating System—Description

c. Training

d. Evaluation of Cost Estimate Development

e. Contract Certification—Estimating Systems

f. IT System Internal Controls—Estimating Systems

g. Internal Control Reporting—Estimating Systems

h. Continuing Evaluation—Estimating System

13. Implementing and Maintaining ICAPS Compliant Controls

14. Preparing for ICAPS Audits

Accreditation

See Individual Courses For Available Credits

Certificates of Completion are provided to all seminar participants who attend Federal Publications Seminars courses following the event, upon request.

CPE: Continuing Professional Education

Field of Study: Specialized Knowledge

Delivery Method: Group-Live Classroom

Federal Publications Seminars is affiliated with Cerifi LegalEdge and is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

For more information regarding administrative policies such as refunds, cancellations and complaints, please contact Federal Publications Seminars at 888.494.3696.

CPE Hours

This program is eligible for: TBA (CPE) hours of credit

Program Level: Intermediate

Program Prerequisite: None

Advance Preparation: None

Method: Group-Live

CLP: Continuous Learning Points

Approved for CLP by Defense Acquisition University

Defense Acquisition Workforce members must acquire 80 Continuous Learning Points (CLP) every two years from the date of entry into the acquisition workforce for as long as the member remains in an acquisition position per DoD Instruction 5000.66. We will provide you with documentation of points awarded for completing the event.

CLP Hours

This program is eligible for: (CLP) hours of credit

CLE: Continuing Legal Education

States have widely varying regulations regarding MCLE credit. LegalEdcenter is an approved provider in AL, AK, AR, CA, GA, IL, ME, MO, MS, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, PA, RI, SC, TN, TX, UT, VA, VI, VT, WA, WI, and WV. Credit may be applied for in other jurisdictions on request and in accordance with state MCLE rules.

Please note that because some states are changing their policy on CLE reporting, you will need to fill out the request for credit from Federal Publications Seminars within 10 business days, or we may not be able to issue credits for the program.

CLE Hours

This program is eligible for: TBA (60 minutes), (50 minutes)