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
What is the primary purpose of the Inspector General Act of 1978 as it relates to government contracting?
Answer: To establish independent oversight offices to detect and prevent fraud, waste, and abuse in federal programs
The Inspector General Act created independent IGs within federal agencies to conduct audits and investigations targeting fraud, waste, and abuse.
Under FAR 52.215-2, how long must a contractor retain books, records, and documents related to a government contract?
Answer: 3 years after final payment, or longer if litigation or audit is pending
FAR 52.215-2 requires records to be retained for 3 years after final payment, and longer if audit, litigation, or claim remains pending.
What triggers the requirement for a contractor to submit certified cost or pricing data under TINA (now codified in 10 U.S.C. § 3702)?
Answer: Contracts or modifications expected to exceed the TINA threshold (currently $2 million) unless an exemption applies
TINA applies to negotiated contracts and modifications expected to exceed $2 million unless the acquisition qualifies for a specific exemption.
A contractor's estimating system is found to be 'inadequate' by DCAA. What is the most likely immediate impact?
Answer: The government may withhold a percentage of progress payments and require corrective action
An inadequate estimating system finding typically results in payment withholds and requires the contractor to submit a corrective action plan.
Which concept in cost accounting requires that costs be consistently classified as either direct or indirect across all contracts?
Answer: Consistency in cost accounting practices (CAS 401/402)
CAS 401 and 402 require contractors to apply consistent cost accounting practices in estimating, accumulating, and reporting costs.
What is a 'cost impact proposal' in the context of Cost Accounting Standards (CAS)?
Answer: A contractor's calculation of the dollar impact of a CAS noncompliance or accounting change on government contracts
When a CAS noncompliance or accounting practice change occurs, the contractor must submit a cost impact proposal showing how it affects the price of government contracts.
Under what circumstances may the government conduct a 'pre-award survey' of a contractor's accounting system?
Answer: Before awarding a cost-reimbursement contract to assess whether the contractor's accounting system is adequate
Pre-award surveys assess a prospective contractor's accounting system adequacy before awarding cost-reimbursement contracts to protect the government's financial interests.