[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR42.101]



[Page 784]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 42_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents

 

                  Subpart 42.1_Contract Audit Services

 

Sec. 42.101  Contract audit responsibilities.



    Source: 63 FR 9062, Feb. 23, 1998, unless otherwise noted.





    (a) The auditor is responsible for--

    (1) Submitting information and advice to the requesting activity, 

based on the auditor's analysis of the contractor's financial and 

accounting records or other related data as to the acceptability of the 

contractor's incurred and estimated costs;

    (2) Reviewing the financial and accounting aspects of the 

contractor's cost control systems; and

    (3) Performing other analyses and reviews that require access to the 

contractor's financial and accounting records supporting proposed and 

incurred costs.

    (b) Normally, for contractors other than educational institutions 

and nonprofit organizations, the Defense Contract Audit Agency (DCAA) is 

the responsible Government audit agency. However, there may be instances 

where an agency other than DCAA desires cognizance of a particular 

contractor. In those instances, the two agencies shall agree on the most 

efficient and economical approach to meet contract audit requirements. 

For educational institutions and nonprofit organizations, audit 

cognizance will be determined according to the provisions of OMB 

Circular A-133, Audits of Institutions of Higher Education and Other 

Non-Profit Institutions.