Last month we wrote about a provision in the proposed 2013 National Defense Authorization Act (“NDAA”) that would have given the Defense Contract Audit Agency (“DCAA”) statutory authority to demand a company’s internal audit reports in order to audit the efficacy of a company’s internal business systems. Surprisingly, the authorization, as originally proposed, was modified in the final legislation. While Congress directed DCAA to issue new guidance regarding auditor access to internal audit reports, Congress stopped short of giving DCAA actual authority to demand such reports. As such, contractors will remain at loggerheads with DCAA auditors who try to exceed their statutory authority.Continue Reading Smash & Grab Redux – Congress Seems to Give DCAA Permission But Forgets to Give It Authority
Business Systems
Smash & Grab – DCAA Poised to Gain Access to Contractor Internal Audit Reports
By Sheppard Mullin on
The Defense Contract Audit Agency (“DCAA”) has long sought access to contractors’ internal audit reports in connection with the routine audit of contractors’ business systems. Contractors have, in most cases, successfully resisted requests for such access on the grounds that DCAA has no statutory authority to request such documents. But that may soon change. Section 843 of the Senate version of the 2013 National Defense Authorization Act (S. 3254) would grant DCAA broad access to contractor internal audit information.Continue Reading Smash & Grab – DCAA Poised to Gain Access to Contractor Internal Audit Reports
Let’s Just Eliminate All Pretense Of Balance
By Sheppard Mullin on
By John W. Chierichella and W. Bruce Shirk
Under our system of laws, legal liability has customarily been based on certain showings, e.g., that an act or omission actually…
Continue Reading Let’s Just Eliminate All Pretense Of Balance