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

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

Post Audit

• Audit Review Committee

• Audit Report
• Auditee Corrective Action

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

2
 Jan 2023

Audit Review Committee

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

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

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

3
 Jan 2023

Audit Review Committee

Normally chaired by DGCA and

includes:
• Audit Manager and Team Leaders
• CAA Directors / Managers
• Aviation Enforcement Advisor
• Company principal inspector(s)

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

Audit Review Committee

• 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

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

4
 Jan 2023

Audit Report

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

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

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

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

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

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

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

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

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

Audit Report ~~ Example

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.

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

7
 Jan 2023

Audit Report ~~ Example

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.

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

Audit Report ~~ Example

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.

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

8
 Jan 2023

Audit Report ~~ Example

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.

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

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

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

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

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

Follow-up

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

10
 Jan 2023

Follow-up

• Audit Follow-up
• Parallel report and follow-up
• Post Audit Surveillance

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

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

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

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

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

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.

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

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

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

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.

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

13
 Jan 2023

Post-audit Surveillance

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

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

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

14
 Jan 2023

Parallel Report

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

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.

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

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

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

QUIZ

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

16
 Jan 2023

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

Quiz 1
What is the purpose of the Audit Review Committee?

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

17
 Jan 2023

Quiz 2

What are the output of an audit?

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

Quiz 3

Normally when should the audit report be

completed?

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

18
 Jan 2023

Quiz 4
What is an audit follow up and its activities ?

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

Quiz 5
What is a Parallel Report and its purpose ?

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

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

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

Auditing Techniques
Part B

Part B Module 1 - Pre-Audit

Part B Module 2 - Conduct
Part B Module 3 - Post Audit & Follow-up

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

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.

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

End of
Part B Module 3 Post Audit & Follow-up

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

21