Assignment objective: To understand the scope of the Estimating System and how it relates to a company’s overall control environment.
Assignment value: 5 points out of a total 100 points in the course.
Based on your amazing work, your Company recently passed its first ever post award Accounting System Audit. You pulled together the right team of resources to assess and document how your Company meets the Accounting System criteria. Preparation involved the coordination of efforts across a variety of disciplines, documenting key subs-systems, updating policies and procedures as necessary, and testing controls in advance of the Defense Contract Audit Agency (DCAA) audit. The preparation enabled your Company to identify and remediate issues before the DCAA began its audit procedures.
Two week’s after receiving an Accounting System Approval Letter from the Administrative Contracting Officer (ACO), your Controller received a letter from the DCAA notifying the Company of its intent to conduct an Estimating System audit.
The Company’s Board of Directors is concerned about the recent level of audit scrutiny and is concerned about why the DoD is conducting multiple Busines Systems audits in a short period of time.
The Board has asked the CFO for an Executive Summary of what the Estimating System audit entails.
The CFO has asked you to draft the Executive Summary on her behalf. She would like the Executive Summary in a week, in advance of the next meeting of the Board of Directors.
Based on the class lecture material and handouts, prepare a single-slide Executive Summary outlining the following for the CFO’s discussion with the Board.What is an Estimating System?
When is a company subject to Estimating System requirements?
How is the Estimating System different than the Accounting System?
Examples of the testing to be performed during an Estimating System audit.
Assignment Grading rubric:
This assignment will be graded based on the following scale:Description of the Estimating System? (2 points)
A summary of when a company is subject to the Estimating System requirements (1 point)
Discussion of how the Estimating System is different from the Accounting System. (1 point)
Examples of items that will be tested by the DCAA during an Estimating System audit. (1 point)
Leverage the DCAA audit program steps related to the Estimating System and Accounting System. Also review the slides from Lessons Three and Four.
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