NCJ Number
66787
Journal
CPA JOURNAL Volume: 48 Dated: (APRIL 1978) Pages: 13-18
Date Published
1978
Length
6 pages
Annotation
SOME OF THE FORMAL CONTRACTING PROCEDURES FOR OBTAINING CETA (COMPREHENSIVE EMPLOYMENT AND TRAINING ACT) AUDITING WORK BY INDEPENDENT AUDITORS ARE HIGHLIGHTED, AND PROFESSIONAL ETHICS AND FEES ARE DISCUSSED.
Abstract
CETA USES AN INTEGRATED AUDIT PROGRAM, WHICH IS A DECENTRALIZED AND FLEXIBLE PROGRAM FOR AUDITING DESIGNED TO PROVIDE MAXIMUM AUDIT COVERAGE IN A MINIMAL AMOUNT OF TIME WHILE USING THE LEAST AMOUNT OF RESOURCES. TO ACCOMPLISH THIS OBJECTIVE, THE DEPARTMENT OF LABOR RELIES HEAVILY ON OUTSIDE AUDIT ORGANIZATIONS. TO OBTAIN CETA AUDITS, THE INTERESTED AUDITING ORGANIZATION SHOULD BE FAMILIAR WITH FEDERAL AND LOCAL PROCUREMENT REGULATIONS AND CETA CONTRACTING PROCEDURES. GENERALLY, CETA AUDITS CAN BE OBTAINED BY CONTRACTING WITH THE DEPARTMENT OF LABOR THROUGH ITS PROCUREMENT OFFICE IN WASHINGTON, D.C., OR BY CONTRACTING DIRECTLY WITH INDIVIDUAL GRANTEES OR PRIME SPONSORS. THE MAJOR PHASES OF FORMAL CONTRACTING ARE ISSUANCE OF A REQUEST FOR PROPOSAL, OBTAINING BIDDERS, AND EVALUATION OF PROPOSALS. MOST CETA CONTRACTS ARE DESIGNED TO WEIGH THE TECHNICAL PROPOSAL 75 PERCENT AND THE PRICE PROPOSAL 25 PERCENT OF THE TOTAL SCORE. BEFORE EMBARKING ON PURSUIT OF GOVERNMENT CONTRACTS, AUDITING ORGANIZATIONS SHOULD BE FAMILIAR WITH THE CODES OF PROFESSIONAL ETHICS OF THE VARIOUS ASSOCIATIONS OF WHICH THEY ARE MEMBERS. PROHIBITIONS ON SOLICITING AND ADVERTISING SHOULD BE PARTICULARLY NOTED. NORMALLY, THERE WOULD BE NO ETHICAL TRANSGRESSION OF SUCH PROHIBITIONS WHEN RESPONDING TO INVITATIONS FOR PROPOSALS ISSUED BY AGENCIES INVOLVED IN GOVERNMENT PROGRAMS. FEES SHOULD BE SET ACCORDING TO WHAT EACH BIDDER BELIEVES IS REQUIRED TO PERFORM A JOB ACCORDING TO THE STANDARDS REQUIRED, WITH A REASONABLE PROFIT, INCUR LOSSES, OR ARE BASED ON THE INTENTION TO SUPPLY LESS WORK THAN IS REQUIRED ARE A MISTAKE, SINCE THEY MAY EVENTUALLY UNDERMINE A COMPANY'S FINANCIAL STABILITY OR REPUTATION. BY SUBMITTING REASONABLE COSTS FOR QUALITY WORK, BIDDERS SERVE TO INFORM GOVERNMENTAL AGENCIES ABOUT THE COSTS TO BE EXPECTED FOR QUALITY AUDITING. (RCB)