How to Record CMMC Compliance Audit Costs
Recording costs for the Cybersecurity Maturity Model Certification (CMMC) third-party assessment (C3PAO) required for contract eligibility.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Professional Fees - CMMC Compliance (Allowable G&A) | Debit | 25,000.00 | - |
| Accounts Payable | Credit | - | 25,000.00 |
💡 Accountant's Note
CMMC audit costs are generally considered allowable G&A expenses under FAR 31.205-28 as they are necessary for the general conduct of business and compliance with procurement regulations.
Practitioner & Systems Framework
💻 ERP Architecture
Use a unique cost element in the G&A pool to track cybersecurity compliance separately for future proposal pricing.
⚠️ Audit Flags
Segregation of audit fees from routine IT maintenance; verification of C3PAO accreditation in the CyberAB marketplace.
📄 Required Documentation
Contract with C3PAO, certification of assessment, and proof of payment.
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