Subpart 42.1
Contract Audit Services
FAR Subpart 42.1 establishes the structure and responsibilities for contract audit services, ensuring effective oversight and financial integrity in government contracting.
Overview
Subpart 42.1 of the FAR establishes the framework for contract audit services within federal contracting. It outlines the responsibilities for conducting contract audits, the process for assigning audit services, and provides a directory for accessing audit resources. The subpart ensures that contract audits are properly managed, assigned, and executed to support contract administration and oversight, helping agencies verify contractor compliance, cost allowability, and financial integrity.
Key Rules
- Contract Audit Responsibilities
- Defines the roles and duties of contracting officers and audit agencies in performing contract audits.
- Assignment of Contract Audit Services
- Specifies how audit services are assigned to appropriate audit organizations, ensuring audits are conducted by qualified personnel.
- Contract Audit Services Directory
- Provides a directory or reference for locating and contacting contract audit service providers.
Responsibilities
- Contracting Officers: Must ensure audits are requested, coordinated, and utilized as required for contract administration.
- Contractors: Must cooperate with audit requests and provide necessary documentation and access.
- Agencies: Oversee the assignment and execution of contract audits, ensuring compliance with FAR requirements.
Practical Implications
- This subpart exists to ensure financial oversight and accountability in government contracts.
- It impacts daily contracting by requiring proper audit coordination and documentation.
- Common issues include delays in audit assignments, incomplete contractor records, and miscommunication between contracting officers and auditors.