Audit From Home & From Office:The Auditor’s work in a Covid-19 Pandemic, BPK Experience

Ramadhan Nugraha Putra / Maria Santi

SAI Indonesia

19-20 May 2021

Virtual meeting via Cisco Webex

AgendaBPK’s auditing legal framework

01

at which point of the audit when the outbreaks

came

Audit timeline02

Faced by both the auditor and the

auditee

Challenges03

a.Audit procedures

b.The infrastructure

c.The working papers

d.The platform

e.Team management

How do we deal

with the situation04

Type of Audit based on

Law number 15/2006

concerning BPK

Financial Audit

(Mandatory, based on Law 1/2004 and Law

15/2004)

Performance AuditSpecial purpose

Audit

Local Government

Financial StatementCentral Government

Financial Statement

BPK’s auditing legal framework

86

Ministries /

Institutions

1

State

General

Treasurer

34

Provincial

Government

514

Regency/City

Government

Audit Timeline in a Covid-19 Pandemic

Field audit of 2019

Central Gov’t

Financial Statements

Field Audit

BPK started audit from home

since 17 March 2020, in response

to WHO declaration of Covid-19

as a pandemic

Audit From Home

Financial Audit

Semester I 2020

January -

February

March

April - May

Auditing, discussion of adjusting entries &

audit findings virtually

Audit From Home

June - July

Health ProtocolThe submission of audit reports to the

Legislative/President/Ministries by physical

distancing, wearing masks, and limited attendees

Semester II 2020

Special purpose Audit,

Performance Audit,

Financial Audit (interim)

Auditing, discussion of audit findings

virtually

Audit From Home

August - December

December - January

Auditing, discussion of audit findings virtually

Audit From Home

Financial Audit

Semester I 2021

January - April

Mostly virtual group discussions, limited attendees on

physical discussions, periodic swab tests, physical

distancing, wearing masks, periodic room disinfectant

spraying

Audit From Home, 25 – 50% Auditors in Office

CHALLENGES WE FACED

LIMITED PHYSICAL INSPECTION

During covid-19 pandemic, the

physical inspection is significantly

limited.

NEW WAY OF MEETING AND

INTERVIEWING

Takes Time to Adjust to New

Working Condition

IT ENTITIES INFRASTRUCTURE

The IT infrastructure of the auditee

is not completely ready for remote

working, especially entities located

outside the capital city

AVALABILITY OF PAPERLESS

DOCUMENTS

The auditee has not yet converted

all significant paper-based

documents into digital form, thus

needs more time to obtain and

analyze the documents.

BEFORE AFTER

Covid-

19

Physical Inspection

Physical MeetingVirtual Meeting

Limited Physical Interaction

Audit Procedure during Pandemic

BPK issued Decree number 4/2020 concerning Technical Guideline on

Financial Audit in Emergency Period

3 scenarios to Decide on SAI Financial Audits in Covid-19 times proposed by IDI

Scenario 1: FS not preparedScenario 2: FS prepared but SAI

has not yet started the audit

Scenario 3: SAI in the process of

conducting the audit

BPK was in the process of the audit when the outbreak came. BPK decided to continue the audit remotely using virtual platform

BPK’s Audit Strategy during Covid-19 Pandemic

1. Generally, the audit is conducted from home, virtually, and through IT optimization.

2. For specific significant matters, physical internal and external meeting could still be

conducted (including the physical verification) by implementing health protocol

3. Considering and implementing sufficient alternative procedures.

4. Remote audit for physical inspection

5. Big Data Analytics

DATA

FINANCIAL AUDIT

TEAM

AUDIT POLICY

NORMAL

NEW

NORMAL

MORE DIGITAL

AND

PAPERLESSHEAD OF

AUDITORAT

GENERAL

PORTAL LKPP

TOP-DOWN

DIRECT ACCESS

DATA SHARING MANAGER IN EACH AUDITORAT GENERAL,

ESTABLISH COORDINATION OF BIG DATA

COORDINATING TEAM IN EACH DIVISION

ENSURE THE EFFECTIVENESS OF THE

DISTRIBUTION

COORDINATOR

IMPLEMENTATION

COMMITTEE

COMMUNICATION AND DATA FLOW IN FINANCIAL AUDIT

There are working groups under the coordination of implementation committee who regularly meet to discuss and recommend the establishment of audit policy, especially during the outbreak

INFRASTRUCTURE

100%All auditors have been equipped with laptops

All laptops have been set to VPN connection

All laptops have been installed with working paper

application (SiAP LK)

Mbps High speed and stable internet connection

ServerBPK has a server to obtain financial information as

well as non-financial information database shared by

the auditee;

BPK has IT Department to maintain, control, and

process the database to be utilized by all the

respective auditors in the audit.

Since 2011

BPK has developed web-based application

which support all phases of the audit,

especially the working papers documentation.

These apps also has covered main features of

the RISK-BASED AUDIT approach and

PAPERLESS working papers.

During the covid-19 outbreaks, all these apps

are simultaneously accessed by all auditors

and effectively help the auditor to finish their

jobs.

Project management

Coaching and document management

Knowledge-based management

Methodology and audit procedures

Main featuresWORKING

PAPER

Consolidation module (planning,

executing, and reporting)

Integrating system between BPK (e-

audit) and the entities (e-auditee)

Main features

Audit management:

planning, reporting,

follow up audit findings

Main features

Share point

Collaboration portal

E-drive

Main features

COMMUNICATION PLATFORMBPK utilized a wide-range of communication platform to enhance the effectiveness and the efficiency of the audit,

especially video conference application.

MOST USE platforms are:

1. Zoom

2. Ruang.bpk.go.id (internally-developed meeting app)

3. Webinar

4. Microsoft Teams

Google Drive

These meeting applications have been in-place as main tools to do interview, internal

coordination meeting, and even the high-level meeting.

Account management, participant check to ensure that only the right people are attending the

meetings, meeting time and topics are scheduled long before

To update the health condition of

each personnels.

Periodic swab test

To update the attendances and the

activities of the auditors during working

hours

Daily activities report

Periodic internal meeting

via meeting application to

maintain the achievement

of the milestones.

Periodic internal meeting

To keep the work on the track,

each team had to submit

their weekly progress report

to the supervisor as well as to

the auditor in-charge.

Weekly progress report

TEAM MANAGEMENT

The working groups are

formed to provide

recommendation on issues

during the audit

Working-group meeting

To conform to the limitation

of 25 – 50% auditors in office

Schedule of Auditors in

Office

Auditors have been

vaccinated on March

2021 (phase 1 & phase 2).

Vaccines

THANK YOUTERIMA KASIHWonderful Indonesia Tourism

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Raja Ampat, Papua

Bromo Tengger Semeru National Park, East Java

Komodo National Park, East Nusa Tenggara