QA and QC on Writing of Audit Recomendation

In general, 6 domains in SAI PMF are divided into 2 groups. Those are?

• (1) Independence and Legal Framework and (2) SAI Institutional Capacity
• (1) SAI Institutional Capacity and (2) SAI Organizational Systems and Professional Staff Capacity
• (1) Independence and Legal Framework and (2) SAI Institutional Capacity
• (1) SAI Institutional Capacity and (2) Audit Quality and Reporting

Those are domains in SAI PMF, except?

• Audit Performance
• Internal Government and Ethics
• Human Resources and Training
• Communication and Stakeholder management

In the concept of Three Lines of Defense, individuals who are accountable to stakeholders for the success of the organization, is?

• The 3rd line of defense
• The 2nd line of defense
• The 1st line of defense
• Governing Body

Those are purpose of QA, except?

• to ensure that necessary quality controls are in place
• to ensure that quality controls are being properly implemented
• to ensure that potential ways of strengthening or otherwise improving quality controls are identified
• to ensure that the auditor comply with regulations

The basic principles of QA are

• (1) Focusing on the design and implementation of quality control system; (2) Output approach; (3) Continuous improvement; (4) Independent from the audit under review
• (1) Focusing on the design and implementation of quality control system; (2) Output approach; (3) Protect audit quality; (4) Independent from the audit under review
• (1) Focusing on the design and implementation of quality control system; (2) Process approach; (3) Continuous improvement; (4) Independent from the audit under review
• (1) Focusing on the design and implementation of quality control system; (2) Output approach; (3) Continuous improvement; (4) Conduct by management of audit unit

The task of Supervisor of Audit Engagement is as follow, except?

• To control and monitor audit activities so as to maintain compliance with the predetermined scope of tasks and audit program
• To evaluate audit activities whether the implemented audit procedures are in accordance with
• To conduct the audit in accordance with the tasks given by the team leader to obtain audit results that are accurate and accounted for in the Audit Working Paper
• To ensure that audit activities are running effectively and efficiently

The attributes of good recommendation for performance audit is as follows, except?

• Doable
• Adding value to the operational aspects of the auditee
• Directed to person who has full authorization to remedy the problem
• Punishing person who responsible for any discrepancies occurred from standard operating procedures

In order to analyze the result of work for risk assessment especially for inherent risk of an account, supervisor must review whether the auditor has?

• identified and assess the risk of misstatement regarding to type, nature & complexities of the transaction related to specific account of financial statemen
• identified required key control that must exist in each of transaction cycle
• reviewed the actual key control and/ or compensating control on each transaction cycle to mitigate the risk
• identified and determine the extent and timing of audit procedure and also the sample size to be examined further in audit process

In determining audit opinion, auditor must understand the effect of limitation of scope and departure from accounting standard to the overall fairness of the presentation of financial statements. Supervisor must review whether the auditor has correctly identified limitation of scope and determine the effect of limitation of scope to the audit opinion. Below is example of limitation of scope, except?

• Accounting records are missing or destroyed
• Management restricts auditor to conduct audit procedures i.e. physical examination, third party confirmation, etc
• Financial statements do not reflect actual/ underlying transactions and events
• Ineffective control from auditee and auditor cannot apply alternative procedures to obtain sufficient evidence

Below is the work of a supervisor to review the work of team leader and team member to conduct analytical procedures of financial statements, except?

• To ensure that vertical computation in each financial statement is accurate
• To ensure that the audit strategy, sample size and materiality level are reflections of risk associated with each account of financial statement
• To ensure that all computation in determining the amount of each account was in line with available formula and if there are any discrepancies, it can be explained
• To ensure that each account is disclosed appropriately according to accounting standard