How to Record DCAA Audit Support Costs
Accounting for internal labor and resource costs associated with supporting a DCAA audit of incurred costs or forward pricing rates.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| G&A - Audit and Legal Support | Expense | 12,000.00 | - |
| Accrued Payroll | Liability | - | 12,000.00 |
💡 Accountant's Note
Internal labor used to pull documentation and respond to DCAA audit inquiries is generally an allowable G&A expense as it relates to the general management of the business.
Practitioner & Systems Framework
💻 ERP Architecture
Use a specific indirect labor task code for 'Audit Support' to justify G&A pool growth.
⚠️ Audit Flags
Significant spikes in G&A labor during audit periods; ensure labor is not charged directly to contracts.
📄 Required Documentation
Timesheets with specific notes on audit support activities and DCAA document request logs.
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Discussion & Community Questions
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