ACO CORB LATEST EXAM TEST PAPER QUESTIONS AND
ANSWERS SURE A+
✔✔What is CAFU? - ✔✔CAFU is a system used to maintain records of the actions
taken to resolve and disposition DCAA Audit reports reportable and non reportable with
questioned costs or reportable findings in a timely manner. The information regarding
reportable audits in CAFU is accessed by the DoD Office of Inspecter General (IG) and
made available to Congress. CAFU shall include a record for each open and closed
reportable audit. Non-reportable audits with questioned costs or negative audit findings
of more than $100,000 become reportable.
✔✔What is the difference between a PNO and PNM. - ✔✔PNO stands for Pre-
Negotiation Objective Memorandum , which is a document that describes the action
plan for addressing each audit finding and recommendation. This document usually
states what the finding is, what the contractors response is to the finding, and DCMA's
position on the finding.--PNOM will document DCAA's negotiation strategy and why the
ACO agrees or disagrees with DCAA. This document must have management
concurrence prior to negotiations with the contractor.
✔✔What is the difference between a PNO and PNM. - ✔✔PNM stands for Price
Negotiation Memorandum, in addition to everything previously written in the PNO, the
PNM should document the outcome of the negotiation. It should state the finalized
outcome of each audit finding and what the final resolution was. This document has to
be signed by management prior to an audit being considered disposition and closed in
CAFU. Once this document is signed by management, it should be forwarded to the
DCAA auditor and any other affected Government offices.
✔✔How long does an ACO have to disposition a reportable audit? - ✔✔12 Months
✔✔How long are CAFU records to be maintained for? - ✔✔6 years and 3 months after
payment of the last contract affected by the audit
✔✔What is the difference between "resolving" audit in CAFU and "dispositioning" audit
in CAFU? - ✔✔A reportable audit is considered 'resolved' when the CO has
determined/documented an action plan for addressing the findings in a PNOM or MFR
and has obtained management concurrence. 3.6.1
An audit is considered 'dispositioned' and closed when 1) all settlement actions relative
to the costs questioned or negative findings of an audit report have taken place and are
documented (i.e., COFD, modification, rate agreement), 2) the ACO completes and
obtains management review and concurrence of the PNM, MFR or other document
dispositioning the audit and 3) CAFU generated email is sent to DCAA with copy of
documentation. 3.9.3
✔✔What is the time standards for 'resolving' and 'dispositioning' audits? - ✔✔ACO shall
'resolve' all audits within 6 months of the audit report issuance date and shall
, 'disposition' all audits within 12 months of the audit report issuance date. Non-
Reportable Audits have no time limit to resolve but shall be dispositioned within 12
months. 3.6.2
✔✔What is a preaward Survery? - ✔✔An independent evaluation of a Prospective
Contractor's capabilities normally performed by DCMA
Ex. Financial Capability, Technical Capability, Production Capability, Quality Assurance,
Accounting System, Government Property etc.
✔✔What are ACO responsibilities with regards to CAFU? - ✔✔a. Ensure all audits are
properly recorded in CAFU and that information is current, accurate, complete
b. Establish and update target dates for resolving and dispositioning audits
c. Resolve and disposition audits in timely manner
d. Consider audit findings in developing pre and post negotiation positions
e. Document actions to resolve/disposition audits
f. Promptly update status of audits: assigned, planned, resolved, dispositioned,
deferred, or forwarded
g. Report questioned costs, sustained amounts, penalties and interest in CAFU
h. Provide copy of PNM, COFD, MFR or other document to auditor
✔✔What are reportable audit types? - ✔✔a. Business System Type Audits; ex.
Accounting and management systems audits, including estimating systems, control
environment and overall accounting systems, billing systems, business systems,
compensation systems, material management and accounting systems, budget and
planning systems, labor systems, information technology systems, purchasing systems,
and direct and indirect cost systems
b. Estimating or other system deficiency reports
c. Earned value management systems
d. Post award audits
e. CAS non-compliance reports/CAS cost impact statements
f. CAS Disclosure Statements
g. Non reportable audits If questioned or potential cost avoidance is $100,000 or more,
h. All supplemental audits on a previously issued reportable audit
✔✔What are non-reportable audit types? - ✔✔a. Pre-award proposals audits/ Pre-
award surverys
b. Forward pricing rate audits
c. Progress payments
d. Assist audits
e. Change order/modification audit
f. Incurred cost or settlement of indirect cost rates with question costs of less than
$100,000
g. Final price submissions
h. Termination settlement proposals
i. Equitable adjustments
j. Hardship/Escalation Claims
ANSWERS SURE A+
✔✔What is CAFU? - ✔✔CAFU is a system used to maintain records of the actions
taken to resolve and disposition DCAA Audit reports reportable and non reportable with
questioned costs or reportable findings in a timely manner. The information regarding
reportable audits in CAFU is accessed by the DoD Office of Inspecter General (IG) and
made available to Congress. CAFU shall include a record for each open and closed
reportable audit. Non-reportable audits with questioned costs or negative audit findings
of more than $100,000 become reportable.
✔✔What is the difference between a PNO and PNM. - ✔✔PNO stands for Pre-
Negotiation Objective Memorandum , which is a document that describes the action
plan for addressing each audit finding and recommendation. This document usually
states what the finding is, what the contractors response is to the finding, and DCMA's
position on the finding.--PNOM will document DCAA's negotiation strategy and why the
ACO agrees or disagrees with DCAA. This document must have management
concurrence prior to negotiations with the contractor.
✔✔What is the difference between a PNO and PNM. - ✔✔PNM stands for Price
Negotiation Memorandum, in addition to everything previously written in the PNO, the
PNM should document the outcome of the negotiation. It should state the finalized
outcome of each audit finding and what the final resolution was. This document has to
be signed by management prior to an audit being considered disposition and closed in
CAFU. Once this document is signed by management, it should be forwarded to the
DCAA auditor and any other affected Government offices.
✔✔How long does an ACO have to disposition a reportable audit? - ✔✔12 Months
✔✔How long are CAFU records to be maintained for? - ✔✔6 years and 3 months after
payment of the last contract affected by the audit
✔✔What is the difference between "resolving" audit in CAFU and "dispositioning" audit
in CAFU? - ✔✔A reportable audit is considered 'resolved' when the CO has
determined/documented an action plan for addressing the findings in a PNOM or MFR
and has obtained management concurrence. 3.6.1
An audit is considered 'dispositioned' and closed when 1) all settlement actions relative
to the costs questioned or negative findings of an audit report have taken place and are
documented (i.e., COFD, modification, rate agreement), 2) the ACO completes and
obtains management review and concurrence of the PNM, MFR or other document
dispositioning the audit and 3) CAFU generated email is sent to DCAA with copy of
documentation. 3.9.3
✔✔What is the time standards for 'resolving' and 'dispositioning' audits? - ✔✔ACO shall
'resolve' all audits within 6 months of the audit report issuance date and shall
, 'disposition' all audits within 12 months of the audit report issuance date. Non-
Reportable Audits have no time limit to resolve but shall be dispositioned within 12
months. 3.6.2
✔✔What is a preaward Survery? - ✔✔An independent evaluation of a Prospective
Contractor's capabilities normally performed by DCMA
Ex. Financial Capability, Technical Capability, Production Capability, Quality Assurance,
Accounting System, Government Property etc.
✔✔What are ACO responsibilities with regards to CAFU? - ✔✔a. Ensure all audits are
properly recorded in CAFU and that information is current, accurate, complete
b. Establish and update target dates for resolving and dispositioning audits
c. Resolve and disposition audits in timely manner
d. Consider audit findings in developing pre and post negotiation positions
e. Document actions to resolve/disposition audits
f. Promptly update status of audits: assigned, planned, resolved, dispositioned,
deferred, or forwarded
g. Report questioned costs, sustained amounts, penalties and interest in CAFU
h. Provide copy of PNM, COFD, MFR or other document to auditor
✔✔What are reportable audit types? - ✔✔a. Business System Type Audits; ex.
Accounting and management systems audits, including estimating systems, control
environment and overall accounting systems, billing systems, business systems,
compensation systems, material management and accounting systems, budget and
planning systems, labor systems, information technology systems, purchasing systems,
and direct and indirect cost systems
b. Estimating or other system deficiency reports
c. Earned value management systems
d. Post award audits
e. CAS non-compliance reports/CAS cost impact statements
f. CAS Disclosure Statements
g. Non reportable audits If questioned or potential cost avoidance is $100,000 or more,
h. All supplemental audits on a previously issued reportable audit
✔✔What are non-reportable audit types? - ✔✔a. Pre-award proposals audits/ Pre-
award surverys
b. Forward pricing rate audits
c. Progress payments
d. Assist audits
e. Change order/modification audit
f. Incurred cost or settlement of indirect cost rates with question costs of less than
$100,000
g. Final price submissions
h. Termination settlement proposals
i. Equitable adjustments
j. Hardship/Escalation Claims
