Question 1: Here is the link for the DoD IG Handbook on Fraud Indicators for Contract Auditors. It has a 1993 date - but it seems to be the most recent version, as I got it directly from their website.
https://www.dodig.mil/resources/Audit/pdfs/igdh7600.pdf
Go to the Table of Contents (pg. 4) - check out the portions of the document related to direct costs (direct materials and direct labor).
Question 2: Think about the age-old problem of manipulation of direct costs, and how this can be detected during an audit?
Discuss your thoughts about detecting direct costs manipulation during an audit .