### Question
How does the law define incurred cost audit?


### Answer
Under *10 U.S.C. § 3842*, **incurred cost audit** is defined as:

> an audit of charges to the Government by a contractor under a flexibly priced contract

#### Citation:
  - *10 U.S.C. § 3842*
  - Heading: **Subtitle A-General Military Law > PART V-ACQUISITION > Subpart D-General Contracting Requirements > CHAPTER 279-CONTRACTOR AUDITS AND ACCOUNTING**

