ACO CORB FINAL PAPER 2026 EXAM
QUESTIONS WITH ANSWERS GRADED A+
● What is a Cost Accounting Standards Board Disclosure Statement and
how is it used in post award contract management? Answer: Disclosing
cost accounting practices by the contractor is required by Public Law
100-679 as a
specific condition to contracting. The disclosure statement is the method
prescribed by the
CAS Board by which contractors satisfy that requirement. When the
contractor meets the
A appropriate dollar thresholds, it must submit a disclosure statement,
generally prior to
contract award. Essentially, it is a contractual commitment by the
contractor to follow the
disclosed practices or agree to a price adjustment, with interest in certain
circumstances, if
they don't, so the government doesn't incur higher costs.
It helps ensure consistency in cost measurement from the first estimate
through actual cost
accumulating and reporting. This aids in price negotiations because it
allows meaningful
,comparisons between estimated and actual costs and between actual
costs of different
periods. It's the benchmark for determining whether the contractor has
consistently applied
the disclosed cost accounting practices. We use it also as a starting point
for audits of the cost
accounting system to determine the propriety of cost allocations.
● Explain the difference in full and modified CAS coverage Answer:
● In terms of the CAS Disclosure Statement, explain the difference
between a determination of adequacy and a determination of compliance
Answer: The government auditor reviews the disclosure statement and
provides input to the CO to determine if it is current, accurate, and
complete and if it adequately describes the contractor's cost accounting
practices. Not necessarily that all practices were in fact disclosed, but
that the auditor isn't aware of any practices that should be disclosed. The
auditor should notify the contractor within 30 days of receipt of
disclosure statement. The auditor then conducts a review to determine
whether the disclosed practices comply with
the CAS and FAR Part 31.
● A prime contractor uses subcontractors in the performance of a Cost
Plus Fixed Fee contract.
A significant delay in the contract closeout has occurred due to the non-
receipt of the incurred
, cost audit from DCAA for the subcontractors involved. Must final rates
first be audited by
DCAA before the prime contractor can submit a final voucher for
contract closeout? Answer: Yes, because the "Allowable Cost and
Payment" clause at FAR 52.216-7 is not a mandatory flow-down clause.
Exception: a contractor must have audited rates by DCAA before the
prime contractor can submit a final voucher, per FAR 52.216-7. An
example of an exception to this rule is using a quick close out
agreement. If subcontract is Firm Fixed-Price
● Contractor Accounting Change: The Contractor submitted a
description of an accounting change on October 1, 2010. The contractor
plans to implement the change on December 1, 2010. The Contractor did
not
request the ACO to deem the change a "desirable" change.
Q: The ACO received DCAA's audit on the subject change. In the audit
report, DCAA states:
"Results of Audit. In our opinion, the subject revision adequately
describes the contractor's
revised cost accounting practices. The practices, as described, comply
with applicable Cost
Accounting Standards, and FAR Part 31."
What should the ACO do next? Answer: The ACO should review the
audit report, create the Post Negotiation Memorandum and then
request the contractor to provide the cost impact
QUESTIONS WITH ANSWERS GRADED A+
● What is a Cost Accounting Standards Board Disclosure Statement and
how is it used in post award contract management? Answer: Disclosing
cost accounting practices by the contractor is required by Public Law
100-679 as a
specific condition to contracting. The disclosure statement is the method
prescribed by the
CAS Board by which contractors satisfy that requirement. When the
contractor meets the
A appropriate dollar thresholds, it must submit a disclosure statement,
generally prior to
contract award. Essentially, it is a contractual commitment by the
contractor to follow the
disclosed practices or agree to a price adjustment, with interest in certain
circumstances, if
they don't, so the government doesn't incur higher costs.
It helps ensure consistency in cost measurement from the first estimate
through actual cost
accumulating and reporting. This aids in price negotiations because it
allows meaningful
,comparisons between estimated and actual costs and between actual
costs of different
periods. It's the benchmark for determining whether the contractor has
consistently applied
the disclosed cost accounting practices. We use it also as a starting point
for audits of the cost
accounting system to determine the propriety of cost allocations.
● Explain the difference in full and modified CAS coverage Answer:
● In terms of the CAS Disclosure Statement, explain the difference
between a determination of adequacy and a determination of compliance
Answer: The government auditor reviews the disclosure statement and
provides input to the CO to determine if it is current, accurate, and
complete and if it adequately describes the contractor's cost accounting
practices. Not necessarily that all practices were in fact disclosed, but
that the auditor isn't aware of any practices that should be disclosed. The
auditor should notify the contractor within 30 days of receipt of
disclosure statement. The auditor then conducts a review to determine
whether the disclosed practices comply with
the CAS and FAR Part 31.
● A prime contractor uses subcontractors in the performance of a Cost
Plus Fixed Fee contract.
A significant delay in the contract closeout has occurred due to the non-
receipt of the incurred
, cost audit from DCAA for the subcontractors involved. Must final rates
first be audited by
DCAA before the prime contractor can submit a final voucher for
contract closeout? Answer: Yes, because the "Allowable Cost and
Payment" clause at FAR 52.216-7 is not a mandatory flow-down clause.
Exception: a contractor must have audited rates by DCAA before the
prime contractor can submit a final voucher, per FAR 52.216-7. An
example of an exception to this rule is using a quick close out
agreement. If subcontract is Firm Fixed-Price
● Contractor Accounting Change: The Contractor submitted a
description of an accounting change on October 1, 2010. The contractor
plans to implement the change on December 1, 2010. The Contractor did
not
request the ACO to deem the change a "desirable" change.
Q: The ACO received DCAA's audit on the subject change. In the audit
report, DCAA states:
"Results of Audit. In our opinion, the subject revision adequately
describes the contractor's
revised cost accounting practices. The practices, as described, comply
with applicable Cost
Accounting Standards, and FAR Part 31."
What should the ACO do next? Answer: The ACO should review the
audit report, create the Post Negotiation Memorandum and then
request the contractor to provide the cost impact
