The PCAOB has government-established rules, such as regulatory functions. These rules set by the PCAOB are just like the rules set by GAAP. When the auditor is present, management and staff should be sincere. The company should answer any questions the auditor would have. Staff should not delve into any matter and treat all auditors with the utmost respect. Management should ensure that all documentation is ready for the auditor and have a file created specifically for this particular audit. The company should know that the auditor is looking for expenses that are compatible with the approved proposal and budget. Make sure there is solid documentation. Also, make sure everything complies with OMB circulars, especially A-21 and DS-2 (Lynee, 2015). When the monitoring process is underway, the company should know that it will have to carefully examine salary limits, effort reporting, cost sharing, program revenue, F&A costs, manufacturing and even modifications (Lynee, 2015). Once the audit is finished, the management and also the internal audit department must read all the documents carefully and make sure that everything is correct. The company must also follow up on any audit action plan (Lynee,