Leading practices for navigating government audits

1. Involve inside and outside counsel: Consider engaging legal experts to guide you through the audit process. Legal counsel can help interpret regulations, protect your rights and provide strategic advice.  
2. Request an entrance conference: Arrange a meeting with auditors to discuss the audit scope, objectives and expectations. Use this opportunity to introduce your team and establish a positive working relationship.  
3. Prepare relevant documents: Gather all documents within the audit scope for review. Ensure that financial records, contracts, policies and other relevant materials are organized and accessible.  
4. Perform an internal pre-audit: Conduct an internal review to identify potential issues or areas of concern. Address any issues proactively before the audit fieldwork begins.  
5. Prepare management for involvement: Educate management about the audit process and their roles. Ensure they understand their responsibilities and are available for interviews if needed.  

1. Designate a point of contact (POC): Appoint a single POC to manage communications with auditors. Regularly update the POC on progress and be responsive to requests.  
2. Ensure document availability: Make sure all required documents are accessible. Save all communications related to the audit.  
3. Preserve documents: Even if document destruction is part of routine management, retain all relevant records during the audit. Destruction should not compromise audit evidence.  
4. Prepare for employee interviews: Review potential interview questions with employees. Ensure that management is present during interviews to provide context and accurate information.  
5. Request an exit conference: Formalize the audit process by requesting an exit conference. Discuss findings, address any concerns and determine when the audit report will be issued.  

Request the audit report: Review the findings and recommendations. Use the report to improve internal controls and compliance. Gain an understanding of the audit agencies and other key players, including:  

• Defense Contract Audit Agency (DCAA): analyzes contract costs, pricing and financial systems. 
• Defense Contract Management Agency (DCMA): monitors contract performance and compliance. 
• Department of Defense Office of Inspector General (DoD OIG): assesses program effectiveness, efficiency and compliance with laws and regulations.  
• Defense Criminal Investigative Service (DCIS): conducts criminal investigations of matters related to DoD programs and operations.  
• General Services Administration Office of Inspector General (GSA OIG)/GSA Schedule/Commercial item contracting audits: focuses on contracts awarded through the GSA schedule or commercial item acquisitions. 
• Department of Veterans Affairs Office of Inspector General (VA OIG): investigates fraud, waste and abuse within the VA system. 
• United States Postal Service Office of Inspector General (USPS OIG): conducts independent audits, investigations and research to ensure transparency and accountability in postal operations and programs. 
• Health and Human Services (HHS) and Center for Medicare and Medicaid Services (CMS) Offices of Inspectors General (OIGs): ensures responsible use of health care programs. 
• Other agency OIGs and investigative services  
• Certified public accounting (CPA)/advisory firms via contract CPA: external firms engaged for specialized audits.