Enclosure (1) to COMDTINST 1520.2
AUD 1130
Technical Indoctrination
Technical Indoctrination provides the newly hired auditor with the basic concepts, techniques, and
procedures of contract auditing. The student learns the fundamental requirements of auditing in the
Government contracting environment by participating in lectures, case problems, and group discussions.
The course content addresses the elements of a contract's life cycle; general types of negotiated contracts;
objectives of Government contract cost accounting and financial cost accounting; the history of Federal
Acquisition Requirements (FAR) Part 31 and the concepts of allocability, allowability, reasonableness,
and selected cost principles; background, purpose, and fundamental requirement of each Cost Accounting
Standard; formulation of questioned overhead and G&A rates as a result of pool and/or base adjustments;
and ethics in the auditing environment. Students will be able to identify relationships between "generally
accepted auditing standards" and "generally accepted Government auditing standards"; describe
importance, pitfalls, and major considerations of risk assessment; list common sources of audit research
material; and state requirements of FAR Part 15 and Standard Forms 1411 and 1412. They will also be
able to select, run, and evaluate the proper E-Z Quant sample program; list the importance and elements
of working papers and prepare working papers required by an audit program step; and components and
requirements of audit reports and draft an initial pricing audit report.
Prerequisites: AUD 1111, AUD 1124 (contact school for registration/course descriptions).
Length: 10 Class Days
AUD 1320
Intermediate Contract Auditing
Intermediate Contract Auditing is designed to provide the staff auditor with information needed to
adequately plan, accomplish, and conduct audits or segments of audits which may be assigned after one
year of contract audit experience.
Topics include defining audit objectives, planning the audit, listing factors influencing risk assessment,
assessing high and low audit risk areas, stating the importance of generally accepted Government auditing
standards, and attending negotiations. Topics also include negotiation techniques and concepts; the
requirements of Form 2000; auditor responsibility to detect fraud; and identify common fraud indicators;
Cost Accounting Standards (CAS), and complete case studies on CAS 401 and accounting changes; post-
award review concepts and price adjustments; audit leads and observations; and ethics in auditing. The
student participates in discussions, practical exercises, and group case studies to highlight problem areas
and evaluate alternative courses of action.
Prerequisites: AUD 1130, AUD 1280 (contact school for registration/course description).
Length: 5 Class Days
AUD 4120
Statistical Sampling
Statistical Sampling concentrates on the knowledge and skills necessary for auditors to perform statistical
sampling in the contract audit environment. Basic statistical concepts, including the elements of a good
sample plan and use of E-Z Quant sampling programs, are reviewed. The students analyze the criteria for
a valid statistical sample, differentiate between variable and attribute sampling, differentiate
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