DCAA Contract Audit Manual This is Volume 1 of 3 Downloaded 12 May 2025 The DCAA Contract Audit Manual (DCAA Manual 7640.1) is an official publication of the Defense Contract Audit Agency (DCAA). It prescribes auditing policies and procedures and furnishes guidance in auditing techniques for personnel engaged in the performance of the DCAA mission. All DCAA supervisory personnel should promote the study and use of the manual by their audit staffs. Further, all DCAA personnel are encouraged to submit recommendations for constructive changes or improvement to the manual. The manual is designed to minimize the necessity of referring to other publications for technical and procedural guidance; therefore, technical supplemental guidance or instructions will not be issued by regional offices except as specifically authorized by the Director, DCAA. VOLUME 1 Foreword and Introduction DCAA Contract Audit Manual - Foreword and Introduction to the DCAA Contract Audit Manual (Oct 2024) Chapter 00 Introduction to the Contract Audit Manual ............................................... 1 Chapter 1 Introduction to Contract Audit (Oct 2024) ……………… ........…………. 17 Chapter 2 Auditing Standards (Feb 2025) ……………………………...….………… 77 Chapter 3 Audit Planning (Feb 2025) …………………………………….…….…… 177 Chapter 4 General Audit Requirements (Apr 2025) …………….……….………… 226 Chapter 5 Audit of Contractor Compliance with Defense Federal Acquisition Regulation Supplement for Contractor Business Systems and Subsystems (Feb 2025) …………………..………………… 357 Chapter 6 Incurred Costs Audit Procedures (Feb 2025) ………… ..…….….……… 412 Why buy a book you can download for free? We print the paperback book so you don’t have to. First you gotta find a good clean (legible) copy and make sure it’s the latest version (not always easy). Some documents found on the web are missing some pages or the image quality is so poor, they are difficult to read. If you find a good copy, you could print it using a network printer you share with 100 other people (typically its either out of paper or toner). If it’s just a 10-page document, no problem, but if it’s 579-pages, you will need to punch 3 holes in all those pages and put it in a 3-ring binder. Takes at least an hour. It’s much more cost-effective to just order the bound paperback from Amazon.com We include a Table of Contents on the back cover for quick reference. We print these paperbacks as a service so you don’t have to. The books are compact, tightly-bound paperback, full-size (8 ½ by 11 inches), with large text and glossy covers. 4th Watch Publishing Co. is a SDVOSB.