M7 (S) - 06dec

Jan 2023
Auditing Techniques for Regulators

Part B
Module 7: Post-Audit and Follow-up
Copyright © 2022 CAAS. No part of it may be used, circulated, quoted, or reproduced for distribution outside CAAS without prior written permission. Every care has been taken to ensure that the
information contained here is accurate. Nonetheless, CAAS does not warrant the currency, accuracy or completeness of the information contained in this document, nor does CAAS accept liability
for loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from reliance on the information contained in this presentation.
Learning Objectives
Participants should be able to perform the following by the

end of the module:
1.Explain the purpose of Audit Review Committee to

review the report
2.Outline an audit report
3.Explain the audit follow-up to ensure that corrective
actions are addressed and closed
4.Define audit closure
5.Explain post-audit surveillance
Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.
1
Jan 2023
Post Audit
Post Audit
• Audit Review Committee

• Audit Report
• Auditee Corrective Action
2
Jan 2023
Audit Review Committee
Held after the completion of the draft Audit Report for the
purpose of:
(a) to confirm the technical accuracy of the report
(b) to ensure that the report is an objective account of
the audit and that no subjective statements are
included
(c) to ensure that statements made in the functional and
specialty area summaries are supported by findings
(d) to determine if any findings should be subject to
investigation for punitive enforcement purposes
3
Jan 2023
Normally chaired by DGCA and

includes:
• Audit Manager and Team Leaders
• CAA Directors / Managers
• Aviation Enforcement Advisor
• Company principal inspector(s)
• Members provide advice to the DGCA

• DGCA makes final determination on all matters related
to the Audit
• Must be held promptly after the completion of the on-
site portion of the audit
• Final Audit Report, after review committee, due to
Auditee within 10 days of the completion of the on-site
audit
4
Jan 2023
Audit Report
Audit Report
• Final Report completed after the Audit Review

Committee
• Presented to Auditee within 10 days of the completion
of physical audit
• Delivered under a cover letter signed by the DGCA
• Includes deadline for submission by Auditee of
corrective action plan to the DGCA
5
Jan 2023
Audit Report ~~ Structure
Part I
• Executive Summary
• General info of Auditee including full name and
address
• Audit synopsis covering Date Audit completed,
Purpose and Scope of Audit and Criteria Used
• Audit Team Members
• Company Management
• Corrective Action Pan
Audit Report ~~ Structure (cont’d)

Part II & III
• Functional Summaries, which contain the specialty
area element (checklist) summaries for each
functional area audited
Part IV
• Audit Findings, which contains the audit findings
assigned during the audit
Part V
• Recommendations
6
Jan 2023
Audit Report ~~ Example
Operations
The audited areas of the Operations section revealed
non-compliance findings demonstrating:
•Failure to fully comply with all applicable regulatory
requirements.
•Ineffective management control of ‘Training/Check
Programs’ to satisfactorily meet safety and regulatory
standards.
•Failure to ensure that the company operations manuals
provide effective system control.
•Failure to maintain adequate control of records
O-13 Minimum Equipment List (MEL)
All of the MELs have been approved by the CAA. Not all
MELs reflect the latest revision of the manufacturing
authority’s approved MMEL. Evidence was seen of an
item exceeding the MEL time category. Evidence was
seen of an aircraft operating outside of the MEL
limitations. One aircraft did not have an approved MEL
on board.
7
Jan 2023
O-14 Dangerous Goods
Operations department did not have a copy of the

Dangerous Goods Manual and it could not be produced
when requested .
Notices to travelers, required by carry-on baggage
dangerous goods regulations, were not in available at
ticket counters, security clearance areas or holding
rooms.
O-15 Flight and Duty Time Limitations
Flight Crew flight and duty time and rest do not comply
with regulatory requirements.
Flight Attendant duty period and rest do not comply with
regulatory requirements.
Flight Operations Officers duty time limitations do not to
exist.
Evidence of pilots exceeding regulatory flight time
limitations.
8
Jan 2023
O-16 Flight and Ground Inspection
Numerous cases were found on board aircraft of aircraft

flight manuals not reflecting CAA approval.
Numerous cases were found on board aircraft of aircraft
operating manuals not reflecting CAA approval.
Several instances were noted of aircraft not having
current approach plates.
Several instances were noted of Flight Attendants not
having the appropriate manuals in their possession.
Audit Report ~~ Summaries
• Ensure the Functional Summaries are supported by

Audit Findings
• Use the same format throughout the audit report
• Write the Summaries in the third person
• Follow the same order as the Audit Findings
• Consider identifying any non-compliances repeated
from previous audits or inspections
9
Jan 2023
Exercise 7.1 - Report Writing
• Get intro groups of 4

• Each group to practise on report writing
• One member to present the work
• 60 minutes
Follow-up
10
Jan 2023
Follow-up
• Audit Follow-up
• Parallel report and follow-up
• Post Audit Surveillance
Audit Follow-up
• Final audit phase

• Focuses on corrective action to findings issued during
an audit
• Includes acceptance of the organization’s corrective
action plan
• Verifies full implementation of that plan and formal
closure of the audit by the DGCA
11
Jan 2023
Audit Follow-up ~~ Method
• Responsibility with company certificate management

office
• Conducted by Inspectors normally assigned to monitor
company
• Frequency of Inspection determined by the nature of
the findings and corrective actions
• Certificate Management office responsible for records
and periodic reporting to DGCA
Audit Follow-up
Audit Follow-up is complete when:
(a) principal inspector has accepted all audit finding

corrective actions
(b) corrective action status has been recorded in the audit
file;
(c) DGCA has been advised; and,
(d) letter informs the Auditee that the audit is closed.
12
Jan 2023
Audit Follow-up ~~ Enforcement Action
• Need for separate regulatory investigation for punitive

enforcement purposes determined by the DGCA
• Commences after delivery of Audit Report to auditee
• Investigation and action are separate from Certificate
Management office
• Usually relates to contraventions that was intentionally
committed by the auditee
• Conduct of an enforcement investigation does not
impact requirement to implement Corrective Actions
Audit Closure
• Upon complete implementation of Corrective Actions

• Certificate Management office recommends closure to
DGCA
• DGCA sends formal correspondence to Auditee
• Normally within 12 months of Audit Report delivery
• Accepted Corrective Actions beyond 12 months
managed outside audit programme as part of Auditee
oversight.
13
Jan 2023
Post-audit Surveillance
Post-audit Surveillance
• Conducted as part of routine oversight by the

Certificate Management office
• Post-audit surveillance is managed and conducted
separately from the audit itself.
• Inspection related to implementation of corrective
actions is integrated into surveillance programme
• Priorities established according the term of corrective
action implementation and risk assessment conducted
by the certificate management office
14
Jan 2023
Parallel Report
Parallel Report
• Findings against Civil Aviation will be described in the

parallel report.
• Needed where there are observations and / or
deficiencies in, or the misapplication of, CAA
legislation, policies and procedures.
• Depending on nature of finding, there might or might
not also be a reference in the Audit Report
• The audit manager will prepare the parallel report on
behalf of the DGCA
• DGCA will assign responsibility for response and
follow-up.
15
Jan 2023
Parallel Report ~~ Examples
• Need for Revised Policy, standards, or procedures:

- Finding shall be made only in the Parallel Report.
• Finding of non-compliance to a regulatory requirement

which required Civil Aviation approval (i.e., document
or manual approval):
− Finding in the Audit Report (so that the non-compliance
is resolved through the CAP); and,
− Finding in Parallel Report
QUIZ
16
Jan 2023
Quiz 1
What is the purpose of the Audit Review Committee?
17
Jan 2023
Quiz 2
What are the output of an audit?
Quiz 3
Normally when should the audit report be

completed?
18
Jan 2023
Quiz 4
What is an audit follow up and its activities ?
Quiz 5
What is a Parallel Report and its purpose ?
19
Jan 2023
Summary
• Purpose of Audit Review Committee to review the report
• Outline of an audit report
• An audit follow-up ensures that corrective actions are
addressed and closed
• Audit Closure
• Post-audit surveillance
Auditing Techniques
Part B
Part B Module 1 - Pre-Audit

Part B Module 2 - Conduct
Part B Module 3 - Post Audit & Follow-up
20
Jan 2023
Reflections…
o What are the 3 key takeaways from this

module?
o Describe one example whereby you can

apply/adapt what you have learnt to your
workplace.
End of
Part B Module 3 Post Audit & Follow-up
21

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Jan 2023

Auditing Techniques for Regulators

Module 7: Post-Audit and Follow-up

Participants should be able to perform the following by the

1.Explain the purpose of Audit Review Committee to

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

• Audit Review Committee

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Review Committee

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Review Committee

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Review Committee

Normally chaired by DGCA and

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Review Committee

• Members provide advice to the DGCA

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

• Final Report completed after the Audit Review

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Report ~~ Structure

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Audit Report ~~ Structure (cont’d)

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Audit Report ~~ Example

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Audit Report ~~ Example

O-13 Minimum Equipment List (MEL)

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Report ~~ Example

O-14 Dangerous Goods

Operations department did not have a copy of the

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Report ~~ Example

O-15 Flight and Duty Time Limitations

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Report ~~ Example

O-16 Flight and Ground Inspection

Numerous cases were found on board aircraft of aircraft

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Audit Report ~~ Summaries

• Ensure the Functional Summaries are supported by

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Exercise 7.1 - Report Writing

• Get intro groups of 4

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Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

Copyright © 2022 Civil Aviation Authority of Singapore. All rights reserved.

• Final audit phase

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Audit Follow-up ~~ Method

• Responsibility with company certificate management

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Audit Follow-up is complete when:

(a) principal inspector has accepted all audit finding

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Audit Follow-up ~~ Enforcement Action