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FGMSD-79-25 1 (1979-05-10)

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GENERAL


RELEASED


Report To The Congress


OF THE UNITED STATES


The Effectiveness Of The

Defense Contract Audit Agency

Can Be Improved



This report on the Defense Contract Audit
Agency is the fifth in a series of reports on
Department of Defense audit organizations.
The magnitude of the Agency's responsi-
bility is reflected by the cost of Defense
contracting--$96 billion in fiscal 1977.

GAO reviewed the work of the Agency and
found that often it is not given enough time
to do an effective audit and sometimes is
not allowed access to contractor records
needed to perform an effective audit. Also,
contracting officers frequently do not con-
sider the Agency's findings when negotiating
contract prices.


The report, which was made at the request
of the Chairman, Subcommittee on Legisla-
tion and National Security, House Commit-
tee on Government Operations, makes sev-
eral recommendations which should help the
Agency to become more effective in its
auditing role.




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110351


FGMSD-79-25
MAY 10, 1979


BY THE COMPTROLLER


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