In order for DCAA to reduce the massive backlog of incurred cost submissions they have revised their audit criterias. The purpose of this revision is to redirect audit efforts to high-risk submissions beginning with the oldest to newest. Therefore in September 2012, DCAA raised its dollar threshold for triggering an automatic audit on a contractor’s incurred cost proposal from a mere $15 million to $250 million. At the same time, the agency modified the criteria for determining the risk levels of a proposal.
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