January 2020
Other Findings Other noteworthy fndings resulted fromthe author’s research. Auditors identifed communication andmeasurement as skills needing improvement. Concerning communication, one auditor noted, “efective writing skills are essential, we must document everything we do. Our audit reports are our product and the communication given must be clear and able to stand the test of time.” With respect to measurement, the importance assigned to this competency may have fowed from the well-recognized auditing term "criteria" in the AICPA defnition; i.e., auditors are trained to evaluate contractor performance against criteria —most often, the Federal Acquisition Regulation (FAR). The study also indicated that, contrary to prevailing literature, auditors of federal contractors want better training in conventional accounting content such as general ledger accounting and, especially, cost accounting. For instance, one respondent noted “the ability to understand how the contractor's accounting systems work is very important. Having previous experience as an accountant (general ledger, accounts payable, payroll) has been extremely helpful in understanding how diferent systems work.” accounting, the international fnancial reporting standards, and enhanced internal controls resulting from Sarbanes-Oxley legislation, but still deliver the knowledge content demanded by the CPA exam. Knowledge of cost accounting is important in auditing cost representations of federal contractors, especially with regard to rates computed to recover indirect cost. A respondent noted, “I remember taking cost (or managerial) accounting; but not to the extent that is needed” for federal auditing. Other respondents identifed a need for “knowledge of pools and bases and the application of indirect cost to direct cost” and a need for training in “the development of a predetermined and actual indirect rate, including the allocation process for those rates.” Many of the comments referred to the need for specialized undergraduate training in the FAR criteria. For instance, one auditor noted, “they don't stress the auditing environment in the undergraduate curriculum. I had 1 The accounting course of study is currently expected to provide training in the emerging areas of forensic
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Defense ARJ, January 2020, Vol. 27No. 1 : 2-26
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