How to Avoid a DCAA Audit

Would you like to perform U.S. Government contracts without worrying about the Defense Contract Audit Agency coming in to audit your company - ever? All you need to do is incorporate in Canada, United Kingdom, France, Netherlands, or Germany.

The Department of Defense has reciprocal audit agreements with certain foreign countries to provide contract audit services and other contract administration services without charge. Under these agreements, DCAA performs audits of U.S. companies performing or bidding on contracts of the foreign country. In return, the auditors of the foreign country perform audits of the foreign companies performing or bidding on U.S. Government contracts. The U.S. currently has reciprocal audit agreements with five countries: Canada, United Kingdom, France, Netherlands, and Germany.

Well, maybe relocating to another country is a bit drastic. And, who knows. The auditors in those far off places might even be tougher than DCAA.