AUDIT QUALITY INDICATORS (AQIS)

Quality Objective

What quality objectives are you pursuing?

Quality risks

What risks are likely to affect the achievement of the quality objectives?

AUDITOR’S AQIs

· Number of audit queries raised by the team

· Provision of implementable recommendations and addressing significant entity risks

· Credibility and accuracy of audit reports

· Compliance with standards and methodologies

· Sufficient and appropriate documentation

· Proper review and supervision of audits

· Effectiveness of the QC framework

· Degree of interaction with auditees and key stakeholders

· Number of times a report is accessed and downloaded from the OAG website

· Quick attention and discussion of particular audit reports by the PAC

· Savings/fund recoveries from audit recommendations

· Preventing further loss and misuse of resources

· Getting a government audit certification for all government auditors

· Timely production and audit of the Treasury Memoranda

· Inconsistencies identified and level of adjustments made on financial statements

· Existence of approved audit manuals

· Full documentation of working papers in Teammate Audit software

· A clear and well-supported basis of opinion

· Assessed entity risks and appropriate responses

· Corroboration and confirmation of similar audit conclusions by an independent party

· Timely report submission

· Organisation/auditee reputation and unlimited access to information and

· Absence of complaints or clarifications from users

AUDITEES’ AQIs

· Positive or total reporting; the OAG also needs to report auditees’ key achievements on top queries or exceptions to avoid creating an impression that the institution has not done much

· Fraud identification and reporting

· Reduction in audit qualifications

· Proper entity risk assessment, identification and responses

· Improvement in entity processes and systems

· Increase in funding as a result of audit recommendations

· Presentation of implementable audit recommendations

· Reduction in the cost-of-service delivery as a result of improved work process efficiencies

· Quality of audit planning

· Consistency in holding entrance, pre-exit and exit meetings to seek clarifications

· Timely audit performance and accurate reporting

· Sufficient working time and audit coverage/scope

· The audit Work load given to teams

· Clarity of the audit objectives

· Simplicity and/or understand ability of the audit issues

· Clients’ knowledge of the auditors’ area of focus

· Relationship between the auditor and auditee whereby friendly encounters encourage auditees to freely disclose information, and

· Gender sensitivity by the audit team

Public disclosure of AQIs

Only Non-Technical AQIs should be selectively disclosed to the general public to avoid widening the expectation gap given that they may perceive them as the gospel truth despite the fact that these can change.