DCAA (Defense Contract Audit Agency) may conduct any and/or all of the following:

Pre Award Survey to Review Accounting Systems, Policies and Procedures to check that the Government Contractor's Accounting System is compliant to FAR (Federal Acquisition Regulations) and CAS (Cost Accounting Standards).  

Review Financial Capabilities to make sure that the contractor has adequate financial strength to perform on a contract,

Timesheet Audits, Incurred Costs Audits if the contractors have submitted detail of their actual indirect rates for a fiscal year