The article focuses on the role of the accountants in the present economy and his role in the expanding defense program. In author's references to the accountant, he is referring to him in both public practice and private employment, since the author sincerely believes that every real accountant is, broadly speaking, a public servant. He renders a public service by seeing to it that accounting data disseminated to the public fairly presents the financial facts of the business or activity involved. Recognition of this responsibility by accountants themselves will serve to establish their professional status. The accountant's knowledge of business and financial matters and his reputation for integrity equip him to exercise economic and ethical leadership so greatly needed in today's society. As a tool of management, in industry, and in government, the accountant must now, more than ever before, measure up to the highest professional standards. The present day problems facing business present a challenge to the accountant, which he cannot safely ignore, to be of greater service to his client and to his country.

The Air Force has been auditing procurement and supply contracts since 1926. In practice, a wide variety of audit work is performed but the major part of procurement auditing affects two general types of contracts-those of a cost-reimbursement nature and those of a fixed-price nature with price redetermination provisions. It is generally agreed that it is appropriate for the Air Force to verify the validity and propriety of claims for reimbursement submitted by contractors under cost- reimbursement type contracts. Obviously, it is impossible for auditors to perform a detailed audit of all transactions relating to the average Air Force contract, therefore, recognized selective audit methods are utilized to the fullest extent practicable. Certain basic factors which auditors are required to consider are: (1) adequacy and reliability of the contractor's accounting system and related internal controls, (2) previous experience with the particular contractor on Government contracts, and (3) the volume of cost to be audited, i.e., the amount of the claim or the amount of the cost statement in relation to the effort and time to be expended on the audit and in relation to the contractor's other business.