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Depending on the types of contracts you have, you can face a vast amount of audit oversight. It can translate into disallowed costs, penalties, fines, and loss of credibility with government customers. Understanding the regulatory government audit mindset and how to prepare for a broad range of audits will place you a step ahead in mitigating the risk of adverse audit problems.
To reduce and avoid audit problems, contractors must understand the audit objectives, techniques, specific areas of audit emphasis, and the options for analyzing and effectively responding to audit findings. Employing best practices in dealing with auditors on a regular basis and formulating an effective chain of communication during the course of various audits, will often achieve this objective. But, mitigating the risk of audit problems and successfully resolving audit problems also requires a thorough understanding of certain audits that most frequently raise adverse issues, as well as a contractor’s responsibilities and rights for effectively addressing questioned costs or challenges to internal controls that result from audits.  Government contractors must also be vigilant and diligent in understanding the sequence of steps and levels of government procurement authorities in resolving audit disputes. Understanding how to prepare for audits; the audit objectives and procedures employed by auditors; how to interact with auditors; and effective methods for deterring and addressing audit issues will mitigate the risk of cost disallowances, loss of contract opportunities, and an image of tainted credibility with the government.  
To meet the objectives of the course, we have assembled a distinguished, experienced Course Faculty. They are instructors who have an extensive background in understanding Government audits and in how to overcome potential audit problems. The professionals leading this course have experience both as DCAA auditors and as consultants to government contractors and have an understanding of both the audit perspective and the government contractor perspective. They work in a consulting profession where they are continuously assisting government contractors in understanding and resolving audit issues. 
  1. Preparing for audits and effectively interfacing with auditors before, during and upon conclusion of audits
  2. Understanding contractor and government rights within the audit process
  3. Dealing with specific types of audits and the more frequent issues within incurred cost proposals, bid proposals, billing rates, cost accounting systems, internal controls, defective pricing, costs, and Cost Accounting Standards, etc.
  4. Being prepared to address potential audit challenges of issues such as travel costs; professional and consulting fees, advertising and selling costs; intercompany transfers; access to records and to employees; DCAA billing cost suspensions, and; reasonableness and allocability
  5. Resolving audit disputes through pro-active interface with auditors, audit managers, contracting officers, and other Government authorities
  6. Evaluating audit challenges and preparing effective responses to audit issues
  7. DCAA audit standards, methods, tools, and procedures for conducting audits
  8. Understanding DCAA’s role of investigative support and in identifying and reporting suspected irregularities.
  9. Understanding oversight techniques and circumstances which elevate audit risk in order to mitigate risk of audit findings
  10. The procurement culture driving audit oversight, and DCAA/DCMA organizational structure, charter, and fundamental audit objectives
  11. Following current procurement trends and their impact on DCAA areas of emphasis, and how contractors should prepare for the audits
We look forward to your participation

Dates and Locations
April 25-26, 2019
Executive Conference and Training Center
Sterling, VA
July 25-26, 2019
The Westin Hilton Head Island
Hilton Head Island, SC
August 19-20, 2019
DC Metro Area - TBA
DC Metro Area, VA
8:00 AM - 3:00 PM
Schedule for La Jolla, CA and Hilton Head, SC
9:00 AM - 4:00 PM
Schedule for All Other Locations

Course Schedule:

Day 1 & 2: 9 am – 4 pm


Course Curriculum
  1. Government Audit Background Information
    1. Regulatory Environment
    2. Government Audit Philosophy
    3. Audit Oversight Charter
    4. Business Environment Elevating Level of Audit Oversight
    5. Overview of Agencies in Audit Oversight Process
  2. Defense Contract Audit Agency (DCAA)
    1. Purpose and Role in Procurement Process
    2. Organization and Structure
      1. Headquarters
      2. Regional Offices
      3. Field Offices
      4. CAC Networks (Contract Audit Coordination)
    3. Relationship with Procurement and Other Oversight Agencies
      1. Procurement Commands
      2. GAO  (Government Accountability Office)
      3. DCMA (Defense Contract Management Agency)
      4. DOD IG (Department of Defense Inspector General)
      5.  DOJ (Department of Justice)
      6. Investigative Agencies
    4. Authority and Responsibilities
      1. Audit Concepts and Principal Duties
      2. Audit Objectives
      3. Auditing Standards
    5. Relationship With Regulatory Agencies
      1. Cost Accounting Standards (CAS) Board
      2. Federal Acquisition Regulations (FAR) Council
      3. DPAP and SS (Defense Procurement Acquisition Policy and Strategic Sourcing)
    6. Internal Operations
      1. Headquarters
      2. Regional offices
      3. Resident and branch offices
      4. Professional staff
      5. Audit statistics
      6. Reports and surveys
    7. Audit Guidance and the DCAA Internet Website
      1. Contract audit manual (CAM)
      2. Open Audit Guidance & public access
      3. Directives and working papers
      4. Special or specific audit guidance
      5. External materials
  3. Dealing with Auditors and Improving Working Relationships
    1. General working relationships
      1. Recognizing audit goals and assignment challenges
      2. Contractor team assignments
      3. Anticipating and correcting problems
      4. Establishing communication process
      5. Responding to audit requests and final results
    2. Preparing for audit
      1. Notification of audit
      2. Anticipating audit procedures and data required
      3. Setting up interface channels
      4. Preparing for entrance conference
    3. Interface during audits
      1. Communication best practices
      2. Responding to audit requests for data and information
      3. Informal versus formal working arrangements
      4. Responding to audit report informally and formally
      5. Resolving problems during audit
      6. Exit meeting
    4. Avoiding audit disputes
      1. Understanding basis for findings
      2. Reviewing draft audit report
      3. Resolution through appropriate audit channels
      4. Involving senior audit management
      5. Analysis of data reviewed and procedures employed
      6. Presentation of additional facts
      7. Corrective action strategies
    5. Resolving unique audit issues and problems
      1. Adverse audit behavior
      2. Sufficiency of audit procedures & data reviewed
      3. Audit avoidance/ignoring of all relevant facts
      4. Materiality issues
  4. Cost accounting System Basics—Understanding Audit Focus
    1. Tracking costs by contract
    2. Direct and indirect cost identification
    3. Recording unallowable costs
    4. Timekeeping and labor distribution
    5. Subsidiary accounting functions
    6. Audits that focus on cost accounting regulations
  5. Specific Audits: Preparing for and Responding to Audit Issues
    1. General concepts covered for each audit
      1. Understanding specific audit procedures & objectives
      2. Mitigating risk through preparation and knowledge
      3. Minimizing audit disputes
      4. Evaluating and challenging audit issues & positions
      5. Specific response methods to audit deficiencies
      6. Contractor rights in audit process and responding
      7. Impact of current audit trends & procurement events
    2. Specific audits
      1. Pre-award or Post-award Accounting System Reviews
      2. Forward Pricing Bid Proposals
      3. Provisional Billing Rates
      4. Internal Controls (Audit “ICAPS” Program)
        1. Overall accounting control environment and business ethics
        2. Billing system
        3. Estimating system
        4. Compensation system
        5. Purchasing system
        6. Impact of current audit trends on DCAA procedures
      5. Cost Accounting Standards
        1. General compliance
        2. Disclosure Statements
        3. Cost impact statements
      6. Incurred Costs
        1. Proposal presentation and timely submission problems
        2. Audit basis for questioned costs
        3. Materiality
        4. Penalties on unallowable costs
      7. Defective Pricing
  1. Unique Cost and Other Audit Issues--Current Audit Initiatives
    1. Labor costs
      1. Timekeeping issues
      2. Uncompensated overtime considerations
      3. Purchased or contracted labor & allocations
    2. Accounting for unallowable costs
      1. Myopic audit views
      2. Directly associated unallowable costs
      3. Statistical sampling techniques
      4. Audit positions on calculating penalties
    3. Allocability
      1. Audit judgment in viewing allocability
      2. Allocation bases for indirect expenses
      3. Concepts of “benefits” entire organization
    4. Reasonableness concepts
      1. Audit perspective
      2. Recognizing judgment factors
      3. Responding to “reasonableness” challenges
      4. Incurred costs most subject to audit reasonableness challenges
    5. Contractor documentation and access to records
      1. Case law governing certain data
      2. Government & contractor rights
      3. Regulations requiring written policies and procedures
    6. Professional and consulting fees
    7. Public relations, advertising, and marketing costs
    8. Business meetings and conference expenses
    9. Travel costs
    10. Compensation Cost Reasonableness and Statutory Limits
    11. Intercompany transfers
    12. DCAA Form 1 Cost Suspension or Disallowance
    13. Estoppel rule
    14. Credits and refunds
  2. Effects of Current Procurement and Audit Events
    1. FAR Part 3 rule changes—business ethics, internal controls, and disclosure
    2. GAO July 2008 audit report on DCAA
    3. DOD rule on pass-through costs on subcontracts
    4. New rule on Time & Material/Labor hour contracts
    5. Significant DCAA guidance and trends

Michael E. Steen is a Director with Redstone Government Consulting, Inc. and a specialist in complex compliance issues to include major contractor cost accounting & business system regulations, financial compliance, resolution of DCAA audit issues, Cost Accounting Standards application, litigation support, and claims preparation. Prior to joining Redstone Government Consulting, Mike served in a number of capacities with DCAA for over thirty years, and upon his retirement, he was one of the top seven senior executives with DCAA. Mike Served as a Regional Director for two DCAA regions, and during that time was responsible for audits of approximately $25B and 800 employees.

Mike was also involved in conducting or managing a variety of compliance audits, to include cost proposals, internal controls and related systems, Cost Accounting Standards, claims, defective pricing, and special programs. He was also actively involved in contract disputes and litigation, and has prepared and presented various lectures and seminars to DCAA staff and business community leaders. Mike also served as a member of the Executive Steering Committee for DCAA during his tenure as a Regional Director.

Mike has a BS Degree in Business Administration from Wichita State University. He is also a graduate of the DCAA Director's Fellowship Program in Management, and has a Masters Degree in Administration from Central Michigan University. Mr. Steen also completed a number of OPM’s management and executive development courses.

Certificates of Completion are provided to all seminar participants who attend Federal Publications Seminars courses following the event, upon request.
All Federal Publications Seminars courses meet the course requirements of the National Contract Management Association’s certification programs. We are a proud Education Partner of the NCMA.
Federal Publications Seminars is part of West Professional Development, which 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 the 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:
This Program is eligible for: 13.0 (CPE) hours of credit
Program Level: Intermediate
Program Prerequisite: None
Advance Preparation: None
Method: Group-Live
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.
This Program is eligible for: 11.0 (CLP) hours of credit
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.
This Program is eligible for: 11.0 (60 minutes), 13.0 (50 minutes)
DC Metro Area - TBA
DC Metro Area, VA 

Venue information for the 2019 Costs & Accounting Week (August 19-23, 2019) courses will be announced shortly. Please check back.

Executive Conference and Training Center
22685 Holiday Park Drive, Suite 60
Suite 60
Sterling, VA 20166
There is not a room block for this location.
The Westin Hilton Head Island
2 Grasslawn Avenue
Hilton Head Island, SC 29928

There is a room block for this location. Rate is $260/night plus taxes. In addition, the daily resort fee will be reduced to $17/day. To make a reservation, call 800-937-8461 and reference the Federal Publications room block. Reservations must be made by June 21, 2019 and are subject to availability.

Continental breakfast and lunch will be served.

Guest rooms at the government per diem: This rate will not be published until the 2019 rates are available. Please note that we have reserved a limited number of guest rooms at the government per diem. These rooms are limited to one attendee per qualifying company. You will be required to present a valid Government ID upon check-in to confirm use of the government rate.

There is a room block for this location. Rate is $260/night plus taxes. In addition, the daily resort fee will be reduced to $17/day. To make a reservation, call 800-937-8461 and reference the Federal Publications room block. Reservations must be made by June 21, 2019 and are subject to availability.

Per Diem Rate
Guest rooms at the government per diem: This rate will not be published until the 2019 rates are available. Please note that we have reserved a limited number of guest rooms at the government per diem. These rooms are limited to one attendee per qualifying company. You will be required to present a valid Government ID upon check-in to confirm use of the government rate.

Continental breakfast and lunch will be served.

Basic or fundamental subject matter is covered. Courses are geared to general knowledge or can be taken as a refresher.
Specific topics or issues within a topic area are covered. Students should be familiar with terms of art and general concepts concerning the course topic.
Workshops and class discussions cover specific subject matter in-depth, and participation is strongly encouraged. Attendees should have at least 2-3 years' experience in the area of study.
Courses build upon students' knowledge and experience, and cover complex issues within the subject matter. Should have 4-5 years' mastery of subject for in-depth analysis.
Masters-level programs designed for professionals with 5+ years' experience. Courses cover in-depth and technical analysis on specific subjects and updates on current issues.
Register Now for:
Government Contract Audits: Dealing with Auditors and Mitigating Audit Risk
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Date Location
April 25-26, 2019 Sterling, VA
July 25-26, 2019 Hilton Head Island, SC
August 19-20, 2019 DC Metro Area, VA
By Phone
Call (888) 494-3696