Published 2026 | TIKC NewsWire
One day a government auditor, often from the Defense Contract Audit Agency, asks to examine your records. For a lot of owners the instinct is to stall, to send as little as possible, or to quietly tidy things up first. All of those instincts can hurt you. On most government contracts, you have already agreed to give the government the right to examine the records that support your costs and claims. An audit is not a favor you are doing them. It is a right you signed up for, and how you respond to it says as much about you as the numbers do.
The access you already agreed to
Standard contract clauses give the government, through DCAA and others, the right to inspect and audit the records that back up your invoices, your incurred costs, and your claims. That access is part of the deal when you take government work, especially on cost-type contracts. It covers the books, the timesheets, the supporting paperwork. You do not get to treat it as optional or negotiate it away after the fact. Refusing reasonable access is itself a problem, separate from anything the auditor might find.
Why stonewalling backfires
Dragging your feet or hiding records rarely makes a problem go away. It makes you look like you have something to hide, and it can lead the government to disallow costs, withhold payments, or escalate. If your incurred cost records are honest, the audit is your chance to prove it. If your accounting system is sound, cooperation shows it. The contractor who opens the books cleanly is in a far better position than the one who forces the government to fight for every page.
Cooperating is not the same as guessing
Giving access does not mean winging answers or handing over commentary you are unsure about. Produce what is asked, keep it organized, and when a question calls for explanation, take the time to answer it accurately rather than off the cuff. If a request reaches into sensitive territory or you are unsure of your rights, that is the moment to involve counsel, not to refuse outright. The goal is honest, complete, and timely cooperation, since the records, including your timekeeping, will speak for themselves when they are kept right.
What to do now
- Know the access clause. Understand that your contracts give the government a right to examine your records.
- Respond promptly. Do not slow-walk or dodge an audit request.
- Never alter records. Produce what exists, and do not clean up or change anything before an audit.
- Stay organized. Keep your books and supporting paperwork ready so an audit is routine, not a scramble.
- Get help on hard asks. If a request feels out of bounds, consult counsel rather than refusing on your own.
An audit feels like a test, and in a way it is, but it is one you pass by being exactly who you already are: a contractor who keeps honest books. Give the access you agreed to, keep your records clean and ready, and the auditor becomes a witness to your integrity rather than a threat to it. Brick by brick.
FAQ
Does the government have a right to my records?
Yes. Standard contract clauses give the government, through DCAA and others, the right to examine the records supporting your costs, invoices, and claims, especially on cost-type contracts.
Can I refuse or delay an audit?
Refusing reasonable access is itself a problem, separate from the audit findings. It can lead to disallowed costs, withheld payments, or escalation.
Should I fix my records before the auditor sees them?
No. Never alter records before an audit. Produce what exists, organized and complete, and explain accurately where needed.
What if a request seems too broad?
Cooperate with what is clearly covered and involve counsel if a request reaches into sensitive territory or you are unsure of your rights, rather than refusing outright.
Sources
Federal Acquisition Regulation. (2026). FAR 52.215-2, Audit and Records, and Subpart 42.1, Contract Audit Services.
Defense Contract Audit Agency. (2026). Contract Audit Manual, access to contractor records.
This article is general information, not legal advice.
About the Author
Melanie Patterson
Founder and CEO of Team Integrity Knowledge Center and creator of GovCon iSource. Former nurse turned entrepreneur with over 10 years guiding small, women-owned, and minority-owned businesses to over $10 million in government awards. Build, grow, scale, brick by brick. Contact
