# Contract Auditing Course (Self-Paced)

Canonical URL: <https://www.graduateschool.edu/courses/contract-auditing-course-self-paced>

## Overview

Gain the knowledge and skills necessary to develop a forward-pricing proposal to address how to evaluate a contractor's estimate of costs to perform a government contract. Use two case studies to learn how to audit the various elements of the proposal: direct labor, direct material, and indirect costs. Also, learn how to incorporate quantitative audit techniques -- statistical sampling, correlation analysis, and improvement curve -- in performing the audit. Develop a historical cost audit to determine whether the contractor is entitled to be reimbursed for costs claimed on contracts. Learn how to use the Federal Acquisition Regulations (FAR) and the Cost Accounting Standards to determine the allowability, allocability, and reasonableness of costs. Learn how to calculate indirect allocation rates and how they are applied to contracts. Applicable sections of the FAR are included as part of your materials for this course.

## What you'll learn

- Describe the types of contract audits and the specific purposes of price proposal and historical cost audits.
- Determine the allowability of costs using acquisition regulations and cost accounting standards.
- Select and apply the methodology and quantitative audit techniques applicable to price proposal and historical cost audits.
- Perform price proposals and historical cost audits.

## Prerequisites

Students should be familiar with contract auditing principles, including understanding FAR and CAS compliance, as well as basic cost allocation techniques such as direct versus indirect costs and overhead rates. Experience with quantitative techniques, including regression analysis and sampling methods, is also recommended.

## Curriculum

#### Module 1: Overview of Contract Auditing

- Objectives of Contract Auditing
- Role of the Contract Auditor in the Procurement Process
- Types of Awards
- Types of Contracts
- Types and Objectives of Contract Audits

#### Module 2: Federal Acquisition Regulations (FAR)

- Purpose and Structure of FAR
- Overview of FAR Part 31, Contract Cost Principles
- FAR Provisions Regarding Contract Audit Activity
- Allowability of Costs

#### Module 3: Cost Accounting Standards (CAS)

- Purpose of CAS
- CAS Coverage and Disclosure Statement Determination
- Overview of CAS 401, 402, and 418

#### Module 4: Allocation of Costs

- Direct vs. Indirect Costs
- Determining Overhead Rates
- Allocating Indirect Costs to Contracts

#### Module 5: Quantitative Techniques

- Audit Applications of Quantitative Techniques

#### Module 6: Performing a Price Proposal Audit

- Planning for the Audit
- Review of Proposal and Data Submitted by the Contractor
- Review of Direct and Indirect Costs
- Preparing Recommendations for the Contracting Officer

#### Module 7: Performing the Historical Cost Audit

- Planning for the Audit
- Review of Direct Costs
- Review of Indirect Costs and Rates
- Preparing Recommendations for the Contracting Officer

## Pricing

**Tuition:** $1649