Audit & Accountability Flashcards
7 cards from real Government Procurement Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Audit & Accountability flashcards as text
Which Federal Acquisition Regulation (FAR) clause requires contractors to maintain adequate cost accounting standards compliance?
Answer: FAR 52.230-2
FAR 52.230-2 requires contractors subject to CAS to comply with all applicable cost accounting standards.
A contractor charges costs for a company picnic to a government contract. This is an example of what type of unallowable cost?
Answer: Entertainment cost
Entertainment costs, including company picnics, are expressly unallowable under FAR 31.205-14 and cannot be charged to government contracts.
What is the purpose of a 'closeout audit' in government contracting?
Answer: To reconcile all incurred costs and ensure final payment accuracy before contract closeout
A closeout audit reconciles final costs, verifies allowability, and ensures the government pays only what is owed before the contract is officially closed.
Under FAR 15.403, cost or pricing data is NOT required when the acquisition is for:
Answer: Commercial items or when adequate price competition exists
FAR 15.403-1 exempts commercial items and acquisitions with adequate price competition from the requirement to submit certified cost or pricing data.
What is a 'billing rate' versus a 'final indirect cost rate' in contractor accounting?
Answer: Billing rates are provisional rates used during contract performance; final rates are established after year-end audit
Billing rates are provisional rates allowing interim payments; final rates are established after the fiscal year ends and incurred cost audits are completed.
Which of the following best describes the 'audit cognizance' concept in federal contracting?
Answer: The assignment of audit responsibility to a specific audit agency for a contractor
Audit cognizance refers to the designation of which audit agency (e.g., DCAA, OIG) has primary responsibility for auditing a specific contractor.
A contracting officer receives a DCAA audit report questioning $500,000 in costs. What is the CO's responsibility?
Answer: Review the audit findings and make an independent determination on allowability
The contracting officer must independently review DCAA's findings and make a final decision on cost allowability, as the CO—not the auditor—has authority to disallow costs.