MAARs are performed before, during, and after the fiscal year when the costs are incurred. Ultimately, the auditor must cover each "applicable" MAARs before issuing his/her audit report.
- MAARs 1, 3, and 7 are typically accomplished on a continuous basis as audits are performed and are not necessarily associated with a single contractor fiscal year or exclusively with the incurred cost audit.
- MAARs 2, 4, 9, 14, 15, and 19 are "reconciliation" procedures and are usually performed as preliminary steps in the audit of incurred costs.
- MAARs 10 and 16 are historical transaction testing and performed during the incurred cost audit.
- MAARs 6 and 13 are concurrent procedures and must be performed during the fiscal year being audited.
- Finally MAARs 5, 8, 12, and 18 are typically performed during annual incurred cost audits but may also be performed in advance of the fiscal year being audited.
Tomorrow we will begin digging deeper into the purpose and objective of each of these seventeen Mandatory Annual Audit Requirements.
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