AUDIT

DEFINITION OF AUDIT

In general auditing is a systematic process for obtaining and evaluating evidence objectively on the allegations about the activities and economic events , with the aim to determine the level of compatibility between these statements with pre-defined criteria , as well as the delivery of results to the users of certain related .

Audit is the process of collecting and evaluating evidence about the information that can be measured on an economic entity . Economic entity is the entity or person conducting business .

The general definition of auditing has critical elements outlined below :

    A systematic process . The form of a series of logical steps or procedures , bererangka and organized .
    To obtain and evaluate evidence objectively . The systematic process for obtaining evidence indicated that underlie the statements made by an individual or a business entity , as well as evaluate without partiality or prejudice against such evidence .
    Statements regarding events and economic events . What is meant by the statement of activities and events here are the results economic accounting process.

  Determine the level of compliance . Gathering evidence about the statement and evaluation of the results of evidence gathering is intended to establish the suitability of the statement with the predefined criteria. Established criteria . Can be:
- Regulations established by a legislative body .
- Budget or any other performance measures determined by management .
- Generally acceptable accounting principles

Delivery of results . Submission of the results of auditing is often referred to as attestation ( Attestation ) .
Interested users . Are users of financial information such as : shareholders , management , creditors , potential investors and creditors , and the tax office .

The difference between the Accounting Audit If Accounting is proof of the transaction until the start of the financial statements , and vice versa if the start of the audit of financial statements until the transaction receipt


AUDIT REPORT

Content of the audit report attached to the standard form format established by the Indonesian Institute of Accountants ( IAI ) . In the auditor's report expressing their concerns about the fairness of the audited financial statements . The auditor's opinion is presented in the form of a written report which is generally a standard form of audit reports . Audit reports consist of three paragraphs : an introductory paragraph ( introductory paragraph ) , the scope of the audit paragraphs ( scope paragraph ) and paragraph opinion (opinion paragraph ) . Included an introductory paragraph as the first paragraph audit report raw form . There are three facts disclosed by the auditor in the introductory paragraph : ( 1 ) the type of services provided by the auditor , ( 2 ) the object of the audit, ( 3 ) the disclosure of management responsibilities to the financial statements and the auditor's responsibility for the opinion given on the financial statements berdasarkanhasil audit . Scope of the audit paragraphs contain a concise statement of the scope of the audit conducted by the auditor , the opinion paragraph contain a concise statement of the auditor's opinion on the fairness of the audited financial statements .

Opinions paragraph

  There are five basic types of audit reports issued by the auditor :

    Report containing an unqualified opinion ( unqualified opinion report) .
    Report containing an unqualified opinion with explanatory language ( unqualified opinion with an explanatory report language) .
    Report that contains a qualified opinion ( qualified opinion report) .
    Reports that contain unnatural opinion ( adverse opinion report) .
    Report in which the auditor does not express an opinion ( disclaimer of opinion report ) .

Unqualified opinion ( Unqualified Opinion )

 The opinion given by the auditor if there is no limitation in the scope of the audit and there are significant exceptions regarding the fairness and application of generally acceptable accounting principles in the preparation of the financial statements , as well as adequate disclosures in the financial statements .

 Reasonable in the opinion paragraph word has meaning : ( 1 ) free from doubt and dishonesty , ( 2 ) complete information. Considered the financial statements present fairly the financial position and results of operations of an organization , in accordance with generally acceptable accounting principles , if they meet the following conditions :

a. Generally acceptable accounting principles used to prepare financial statements .

b . Changes in the application of generally acceptable accounting principles from period to period have sukup described .

c . Information in the records that support it have been described and explained in the financial statements fairly , in accordance with generally acceptable accounting principles .

Contains reports Unqualified Opinion with Explanatory Language ( Unqualified Opinion with Explanatory Report Language)

 If there are things that need clarification language , but still the financial statements present fairly the financial position and results of operations of client companies .

Naturally, with the exception Opinion ( Qualified Opinion )

 If the auditors find the following conditions :

    Limited by the scope of the audit client .
    Auditors can not perform audit procedures to obtain important or not important information for the conditions that are beyond the power of the client and the auditor .
    The financial statements are not prepared with generally acceptable accounting principles .
    Generally acceptable accounting principles used in the preparation of the financial statements are not applied consistently .

This opinion is given the auditor if the auditor audit found one of the conditions 1 to 4 as above , and if the overall financial statement presented by the client is reasonable .

Opinions Not Fair ( Adverse Opinion )

 Is the opposite unqualified opinion . This opinion is given if the client's financial statements are not prepared on generally acceptable accounting principles that do not present fairly the financial position , results of operations , changes in retained earnings , and cash flows of the client company . As well as the limited scope of the auditor does not audit .

Statement Not Giving Opinions ( Disclaimer of Opinion )

 If the auditor does not express an opinion on the audited financial statements , the report was referred to the reports without opinion . Conditions that led to her as follows :

1 . Barring exceptional nature of the audit scope .

2 . The auditor is not independent in relation to client premises .

3 . The financial statements provided by the company are not reported in accordance with generally accepted accounting standards .

TYPE OF AUDITOR

Grouped into three categories : independent auditors , government auditors , and internal auditors .

Independent Auditors

 Independent auditor is the auditor professionals who provide services to the general public , especially in the field of audit of financial statements made ​​by his client . The audit indicated primarily to meet the needs of users of financial information such as lenders , investors , prospective creditors , potential investors , and government agencies . To practice as an independent auditor , a person must meet the requirements of specific education and work experience . Independent auditor must have graduated from the faculty of economics or accounting majors have equated diploma , has a degree from the accountants Expert Advisory Committee Equation Accountant diploma , and obtain a license from the Minister of Finance .

Government auditors

 Government auditors are professional auditors who work in government agencies who audit the task pokonya financial accountability to the government . Although there are many auditors who work in government agencies , but generally called the government auditor is the auditor who worked on the Financial and Development Supervisory Agency (BPK ) and the state audit agency ( BPK ) , and the tax authorities .

Internal auditor

    Internal Auditor is an auditor who works in the company ( State or private companies ) that the main task is to determine whether the policies and procedures established by top management are adhered to , to determine whether or not his wealth preservation of the organization, to determine the reliability of the efficiency and effectiveness of the organization's activities procedures , and to determine the reliability of the information generated by various parts of the organization . Service users are generally the Board of Commissioners and Director of the company .

TYPE AUDIT

 Audits are generally classified into three categories : financial statement audits , compliance audits , operational audits .

Audit of Financial Statements ( Financial Statement Audit )

 Audits are conducted by independent auditors on the financial statements presented by the client to express an opinion about the fairness of the financial lapora . In a financial statement audit , the independent auditor assess the fairness of the financial statements on the basis of conformity with accounting principles generally acceptable .

Compliance Audit ( Compliance Audit )

 Audit compliance audit objective was to determine whether the audit in accordance with certain conditions or regulations . Results of compliance audits generally dilaorkan to the authorities making criteria .

Operational Audit ( Operational Audit )

 Operational audit is a systematic review of the organization's activities , or portions thereof , in relation to a particular destination . Operational audit objectives to :

1 . Evaluate the performance .

2 . Identify opportunities for improvement .

3 . Make recommendations for improvement or further action .

Professional Ethics

 Premise underlying the formulation of professional ethics is the need for the profession of public confidence in the quality of the services rendered by the profession , regardless of profession members who submit such services . Every profession which provides services to the community requires trust of the communities it serves . If the service user does not have confidence in the profession to clients and the public at large to be ineffective

CHARACTER  ACCOUNTANT PUBLIC

 Integrity and objectivity is very important in the life of a professional accountant . For as a practicing accountant auditor , in addition to the integrity and objectivity needed independency . Integrity is an element of the character that shows a person's ability to realize what had disanggupinya and believed the truth into reality . Objectivity is an element of the character that shows a person's ability to express reality as it is , regardless of personal interests or interests of other parties . Independent auditor is the auditor who is not affected and not affected by a variety of forces outside themselves auditor in considering the fact that in the audit met.