--- title: Preparing for a DCAA Accounting System Adequacy Audit description: Are you prepared for a DCAA Accounting Systems Adequacy Audit? As a government contractor, your first face-to-face interaction with a DCAA auditor will likely be an Accounting Systems Adequacy Audit. Find out the questions you should be asking yourself to get ready for your first audit. image: https://sql.sympaq.com/hubfs/1-1.jpg --- [Contact: 800-437-8151](tel:18004378151) [Help Desk](https://aldebaron.assist.com/portal) [![DCAA Compliant Accounting System | SYMPAQ](https://sql.sympaq.com/hubfs/crop-trans-logo.png "Government Contract Cost Accounting")Project Cost Accounting Software for Government Contractors](https://www.sympaq.com/) - [PRODUCTS](https://www.sympaq.com/) - [SYMPAQ Accounting](https://www.sympaq.com/sympaq-sql/) - [SYMPAQ Time & Expense](https://www.sympaq.com/sympaq-etx/) - [SYMPAQ DEMOS](https://www.sympaq.com/demos/) - [PRICING](https://www.sympaq.com/sympaq-pricing/) - [SERVICES](https://www.sympaq.com/services/) - [AUDITS](https://www.sympaq.com/dcaa-audits/) - [DCAA Audits](https://www.sympaq.com/dcaa-audits/) - [Single Audits](https://www.sympaq.com/a-133-audits/) - [RESOURCES](https://www.sympaq.com/#) - [Events / Webinars](https://www.sympaq.com/events-schedule/) - [SYMPAQ Demos](https://www.sympaq.com/demos/) - [Useful Links](https://www.sympaq.com/useful-links/) - [BLOG](https://sql.sympaq.com/blog) [![REQUEST DEMO](https://no-cache.hubspot.com/cta/default/2695973/fa292e59-f01d-4acf-b907-53fc989efa07.png)](https://cta-redirect.hubspot.com/cta/redirect/2695973/fa292e59-f01d-4acf-b907-53fc989efa07) [![DCAA Compliant Accounting System | SYMPAQ](https://sql.sympaq.com/hubfs/crop-trans-logo.png "Government Contract Cost Accounting")Project Cost Accounting Software for Government Contractors](https://www.sympaq.com/) - [PRODUCTS](https://www.sympaq.com/) - [SYMPAQ Accounting](https://www.sympaq.com/sympaq-sql/) - [SYMPAQ Time & Expense](https://www.sympaq.com/sympaq-etx/) - [SYMPAQ DEMOS](https://www.sympaq.com/demos/) - [PRICING](https://www.sympaq.com/sympaq-pricing/) - [SERVICES](https://www.sympaq.com/services/) - [AUDITS](https://www.sympaq.com/dcaa-audits/) - [DCAA Audits](https://www.sympaq.com/dcaa-audits/) - [Single Audits](https://www.sympaq.com/a-133-audits/) - [RESOURCES](https://www.sympaq.com/#) - [Events / Webinars](https://www.sympaq.com/events-schedule/) - [SYMPAQ Demos](https://www.sympaq.com/demos/) - [Useful Links](https://www.sympaq.com/useful-links/) - [BLOG](https://sql.sympaq.com/blog) [![REQUEST DEMO](https://no-cache.hubspot.com/cta/default/2695973/fa292e59-f01d-4acf-b907-53fc989efa07.png)](https://cta-redirect.hubspot.com/cta/redirect/2695973/fa292e59-f01d-4acf-b907-53fc989efa07) [![DCAA Compliant Accounting System | SYMPAQ](https://sql.sympaq.com/hubfs/crop-trans-logo.png "Government Contract Cost Accounting")Project Cost Accounting Software for Government Contractors](https://www.sympaq.com/) menu close close - PRODUCTS - [SYMPAQ Accounting](https://www.sympaq.com/sympaq-sql/) - [SYMPAQ Time & Expense](https://www.sympaq.com/sympaq-etx/) - [SYMPAQ DEMOS](https://www.sympaq.com/demos/) - [PRICING](https://www.sympaq.com/sympaq-pricing/) - [SERVICES](https://www.sympaq.com/services/) - RESOURCES - [Events / Webinars](https://www.sympaq.com/events-schedule/) - [Useful Links](https://www.sympaq.com/useful-links/) - [BLOG](https://sql.sympaq.com/blog) ## Blog ### Subscribe to our Blog # Preparing for a DCAA Accounting System Adequacy Audit [Insider](https://sql.sympaq.com/blog/topic/insider), [Business Tips](https://sql.sympaq.com/blog/topic/business-tips) 01/25/2022 [G. Chris Brown](https://sql.sympaq.com/blog/author/cbrown) ![1-1](https://sql.sympaq.com/hs-fs/hubfs/1-1.jpg?width=328&name=1-1.jpg) As a government contractor, your first interaction with a [DCAA auditor](https://sql.sympaq.com/blog/dont-be-a-child-how-to-deal-with-dcaa-auditors) will likely involve an Accounting System Adequacy Audit ([SF1408 Pre-award Survey](https://www.dcaa.mil/About-DCAA/Services/)). The audit does exactly what the title states. [DCAA](http://www.dcaa.mil/)will be scrutinizing your internal processes and information systems to determine if your accounting system, procedures and internal controls are capable of resulting in compliant cost tracking and billing if your company were to be awarded with a cost-type federal contract award. You should ask yourself these questions when preparing for an audit. If you are comfortable with your answers, then you are probably ready for an audit. - Do my procedures and accounting records follow [Generally Accepted Accounting Principles](https://www.accounting.com/resources/gaap/)? - Are my indirect costs segregated from my direct costs? You can determine this by reviewing your chart of accounts to make certain that you have grouped your expense accounts by those that are directly contract related and by then by fringe, overhead and general & administrative expenses, respectively.  - Are my unallowable costs segregated from both direct and indirect costs? Familiarize yourself with those costs that are deemed unallowable per [FAR Part 31](https://www.acquisition.gov/far/part-31#FAR_31_205) and make certain that they are excluded from your indirect cost pools.  - Is my timekeeping system set up in a manner that would pass an audit? Each of your staff or subs must have access to a [timesheet system](https://www.sympaq.com/sympaq-etx/) that enables the recording of time spent on direct effort as well as indirect cost objectives (e.g. paid time off).  - Does my timekeeping system connect with a [labor distribution system](https://sql.sympaq.com/blog/labor-distribution-its-meaning-and-methods-sympaq-blog) to calculate raw labor costs for both direct and indirect cost objectives? Auditors place a high premium on accounting for incurred labor dollars. - If I were to pull a sample of timecards, would the timecard, labor distribution summary, paycheck detail and the billing voucher all agree? Never, ever go into an audit without first reconciling your supporting schedules.  - When allocating indirect costs to direct costs incurred by contract, are my allocation formulas defined in a logical and consistent manner? For example, fringe benefits are only allocated to total salaries and wages less paid absences and overhead is only allocated to direct labor costs.  - Are all employees following policies and procedures set by the company? It’s important to remember that company policies need to be followed in accordance with [FAR regulations](https://sql.sympaq.com/blog/dcaa-far-31-205-cost-principals-guidebook). Audits are a fact of life when selling to the government. However, by insuring that you have compliant systems and processes in place before the audit, they don't have to stressful! [![8 Steps to Take When Dealing with the DCAA](https://no-cache.hubspot.com/cta/default/2695973/329c6807-f651-4223-b24a-ae850237e87f.png)](https://cta-redirect.hubspot.com/cta/redirect/2695973/329c6807-f651-4223-b24a-ae850237e87f) ### Recent Blogs February, 07 2025 ## [Strong Headwinds Ahead for Federal Government Contractors in 2025](https://sql.sympaq.com/blog/5-challenges-federal-government-contracting-0) [Government Contractor](https://sql.sympaq.com/blog/topic/government-contractor) [Accounting Software](https://sql.sympaq.com/blog/topic/accounting-software) [SYMPAQ Benefits](https://sql.sympaq.com/blog/topic/sympaq-benefits) [Business Tips](https://sql.sympaq.com/blog/topic/business-tips) [Headwinds](https://sql.sympaq.com/blog/topic/headwinds) Poised to bid on contracts with the Federal Government? you will likely encounter challenges with procurement regulations and bureaucracy.[ Read the Blog](https://sql.sympaq.com/blog/5-challenges-federal-government-contracting-0) 0 Comments [Click here to read/write comments](https://sql.sympaq.com/blog/5-challenges-federal-government-contracting-0#comments-listing) January, 10 2025 ## [End of Year Tax Form Filing Has Never Been Easier!](https://sql.sympaq.com/blog/end-of-year-tax-form-filing-has-never-been-easier) [tax](https://sql.sympaq.com/blog/topic/tax) [2024](https://sql.sympaq.com/blog/topic/2024) As we learned last year when the paper filing threshold dropped from 250 for each tax form to 10 tax forms in aggregate (i.e., 1099-NEC plus 1099-Misc plus W2), one should no longer be contemplating t\[...\][ Read the Blog](https://sql.sympaq.com/blog/end-of-year-tax-form-filing-has-never-been-easier) 0 Comments [Click here to read/write comments](https://sql.sympaq.com/blog/end-of-year-tax-form-filing-has-never-been-easier#comments-listing) December, 04 2024 ## [Another Year, Another End-of-Year Update](https://sql.sympaq.com/blog/2024-year-end-of-year-update) [2024](https://sql.sympaq.com/blog/topic/2024) One thing we've learned over the years as a software publisher is that unless you are planning on sunsetting a legacy application, you are never "done" with development.[ Read the Blog](https://sql.sympaq.com/blog/2024-year-end-of-year-update) 0 Comments [Click here to read/write comments](https://sql.sympaq.com/blog/2024-year-end-of-year-update#comments-listing) ![](https://sql.sympaq.com/hs-fs/hubfs/crop-trans-logo.png?width=200&name=crop-trans-logo.png) We are focused on delivering reliable cost accounting, timekeeping and expense reporting solutions to labor-intensive federal government contractors and not-for-profit organizations in search of fully compliant, standards-based, project accounting software. ### Get In Touch [contact@sympaq.com](mailto:contact@sympaq.com) Local phone:[(301) 670-0858](tel:3016700858) Fax: (301) 840-1591 15839 Crabbs Branch Way, Rockville, MD 20855. [Privacy Policy](https://www.sympaq.com/privacy-policy/) [Cookie Policy](https://www.sympaq.com/cookie-policy/) [Terms & Conditions](https://www.sympaq.com/terms-and-conditions/) ### Subscribe to Our Blog Get the latest business resources on the market delivered to your inbox. Copyright © 2023 Aldebaron, Inc. All rights reserved. Website by [IMGdigitalAgency.com](https://www.imgdigitalagency.com/) [![](https://sql.sympaq.com/hubfs/blue-seal-bbb.png)](https://www.bbb.org/us/md/rockville/profile/computer-software-developers/sympaq-0241-236013238#sealclick) ![](https://px.ads.linkedin.com/collect/?pid=1997524&fmt=gif) × ### Speak to a Specialist Find out how SYMPAQ makes DCAA compliance a breeze. Fill out the form below to speak with a SYMPAQ team member. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "G. Chris Brown", "url" : "https://sql.sympaq.com/blog/author/cbrown" }, "dateModified" : "2022-01-27T16:08:24.826Z", "datePublished" : "2022-01-25T16:33:12.000Z", "headline" : "Preparing for a DCAA Accounting System Adequacy Audit", "image" : [ "https://sql.sympaq.com/hubfs/1-1.jpg" ], "mainEntityOfPage" : { "@id" : "https://sql.sympaq.com/blog/dcaa-accounting-systems-adequacy-audit", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://sql.sympaq.com/hubfs/logo-2.png" }, "name" : "Aldebaron, Inc." } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "G. Chris Brown" }, "dateModified" : "January 27, 2022, 4:08:24 PM", "datePublished" : "2022-01-25 16:33:12", "description" : "Are you prepared for a DCAA Accounting Systems Adequacy Audit? 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