DCAA Audit Reports - Contractor Responses

2-603.7 Obtaining the Views of Responsible Officials

(2018 GAGAS 9.50 – 9.55) **

a. Auditors should obtain and report the views of responsible officials of the audited entity concerning the findings, conclusions, and recommendations included in the audit report, as well as any planned corrective actions.

b. Auditors should provide a draft report with findings to the responsible officials of the audited entity for review and comments. This assists in developing a report that is fair, complete, and objective. Written comments are preferable, but oral comments are acceptable.

c. When auditors receive written comments from the responsible officials, the comments should be summarized in the report and a copy of the full written comments included as an appendix to the report. When the responsible officials respond with oral comments only, auditors should prepare a summary of the oral comments for inclusion in the audit report. The summary should be provided to the responsible official for confirmation that the summary of the comments is fairly stated prior to issuing the audit report.

d. When the audited entity’s comments are inconsistent or in conflict with the findings, conclusions or recommendations in the draft report, the auditor should evaluate the validity of the audited entities comments and explain the reasons for the disagreement in the audit report. If the auditor finds the comments to be valid and supported with sufficient, appropriate evidence, the audit report should be appropriately modified.

e. Obtaining oral comments may be appropriate in situations such as: meeting a reporting date that is critical to the user’s needs; the auditors have worked closely with the responsible officials throughout the work and the parties are familiar with the findings and issues addressed in the draft report; when the auditors do not expect major disagreements from the entity’s officials regarding the findings, conclusions, and recommendations in the draft.

f. In cases where the audited entity provides technical comments in addition to its written or oral comments on the report, auditors may disclose in the report that such comments were received.

g. If the audited entity refuses or is unable to provide comments within a reasonable period of time, the audit report should indicate that the audited entity did not provide comments.

h. See 4-304.5, Operations Audits – Exit Conferences for information on obtaining comments from responsible officials and 10-208.5d for information on reporting those comments.