The Development of Quality Management System in Compliance Audit of Construction Contract Agreement

Abstract

Construction projects funded by the government are usually audited by an independent auditor. Audit functions to increase transparency, accountability, and to know the actual conditions of an entity as a basis for making decisions and reducing the risk of errors in policy making for the entity being audited. One type of audit is a compliance audit. The purpose of the compliance audit is to assess whether the principal matters audited are compliant with the regulations. Compliance audit in the construction industry is to assess the implementation of contract agreement between users and the providers, but the auditor is faced with the risk of the possibility that the Auditor's findings, conclusions or recommendations are incorrect or incomplete, as a result of factors such as insufficient or inappropriate evidence, or misleading information which will cause a lawsuit. The method used is the study of literature and the Delphi method. This study aims to develop a quality management system of compliance audit phases in order to achieve the expected quality objectives. The results of this study indicate that the audit phases and quality objectives can be categorized into three phases, namely planning, executing, and reporting.