DCAA Audit Preparation Checklist

60 Days Before

Internal Pre-Audit Review
Conduct comprehensive internal audit using DCAA checklist. Identify and remediate any issues.

30 Days Before

Documentation Gathering
Compile all required documentation, policies, and reports. Verify completeness and accuracy.

14 Days Before

Team Preparation
Brief all employees on audit procedures. Conduct mock interviews and floor checks.

7 Days Before

Final Review
Verify system access, run test reports, ensure all corrections are complete.

Audit Day

Execution
Designated point of contact ready, workspace prepared, all documentation accessible.

System & Technical Readiness

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Timekeeping system demonstration ready - Can show all features live

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Test accounts created - Demo employee for system walkthrough

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Audit trail verified - Can demonstrate complete change tracking

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Report generation tested - All standard reports run without errors

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System access controls documented - User permissions matrix available

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Data backup verified - Recent backup available for recovery if needed

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Integration points tested - QuickBooks/payroll sync functioning

Required Documentation

Employee Preparation

Document Type	Description	Status
Timekeeping Policy	Written procedures for time entry, approval, corrections	☐ Ready
Employee Acknowledgments	Signed statements from all employees confirming policy understanding	☐ Ready
Training Records	Documentation of timekeeping training for all employees	☐ Ready
Organizational Chart	Current org chart showing reporting relationships	☐ Ready
Labor Distribution Reports	Sample reports showing labor allocation by contract	☐ Ready
Payroll Reconciliation	Documentation showing timesheet/payroll alignment	☐ Ready
Correction Logs	Records of all timesheet corrections with justifications	☐ Ready
System Documentation	User guides, admin procedures, security protocols	☐ Ready
Contract List	All active contracts with labor categories and rates	☐ Ready
Internal Audit Reports	Results from recent internal compliance reviews	☐ Ready

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All employees briefed on audit process

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Floor check procedures communicated

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Key personnel identified and available

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Timesheet compliance verified for all employees

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Recent timesheet issues resolved and documented

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Employee interview talking points prepared

Data Validation Checks

Last 90 Days Review

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No missing timesheets - All employees have submitted for all periods

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All timesheets approved - Supervisor approvals documented

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Daily entry compliance - No patterns of weekly batch entry

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Labor distribution accurate - Charges align with actual work performed

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Corrections documented - All changes have proper justification

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Unallowable costs segregated - Properly identified and excluded

Common Audit Focus Areas

🔍 Critical: Areas of Heightened Scrutiny

Labor Transfers: Movement of costs between contracts
Overtime Authorization: Documentation of approved overtime
Consultant Time: Proper tracking of subcontractor hours
Leave Accounting: Vacation, sick, and holiday time charging
Remote Work: Time tracking for telework arrangements
After-Hours Changes: Timesheet modifications outside normal hours

Floor Check Readiness

DCAA may conduct unannounced floor checks. Ensure employees know:

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What project/contract they're currently charging time to

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How to access and demonstrate the timekeeping system

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Their timesheet is current (entered daily)

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Company timekeeping policies and procedures

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Who to contact if auditor has questions

Workspace & Logistics

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Dedicated audit room prepared - Private, secure space with internet

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Computer/printer access arranged - For auditor use if requested

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Document reproduction capability - Copier/scanner available

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Parking/access badges arranged - For multi-day audits

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Point of contact designated - Single liaison for auditor requests

Report Generation Checklist

Prepare these reports in advance:

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Employee timesheet summary (last 3-6 months)

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Labor distribution by contract/project

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Indirect labor allocation reports

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Exception reports (missing/late timesheets)

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Correction/adjustment reports with audit trails

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Payroll reconciliation reports

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User access and permissions reports

💡 Pro Tips for Audit Success

Be Transparent: If issues exist, document corrective actions taken
Stay Organized: Use a document index for easy reference
Respond Promptly: Quick responses build auditor confidence
Take Notes: Document all auditor requests and your responses
Follow Up: Address any findings immediately after the audit

Post-Audit Actions

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Debrief with team - Review what went well and areas for improvement

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Document findings - Create action plan for any issues identified

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Implement corrections - Address findings within specified timeframe

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Update procedures - Revise policies based on audit feedback

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Schedule follow-up - Plan internal review to verify corrections