Audit Report-Rahmawati n friends

Audit

Presenter:       Rahmawati

A. Nur Shely F. T.

                        Sefriatno

                        Muh. Dhohir

A.      Definition of Audit:

According to Arens and Loebbecke (Auditing: An Integrated Approach, eighth edition, 2000:9), Audit is the activity of collecting and evaluating evidence about information to determine and report the information to the level of concordance between the established criteria. Audit process must be performed by a competent and independent person.

According to The American Accounting Association's Committee on Basic Auditing Concepts (Auditing: Theory And Practice, 9 edition, 2001:1-2) audit is a systematic process for obtaining and evaluating evidence objectively about the state of economic activity and events with the goal of setting umtuk level of concordance between these statements with established criteria and communicating the results to interested users.

According to William F. Meisser, Jr. (Auditing and Assurance Services, A Systematic Approach, 2003:8) audit is a systematic process with the aim of evaluating the evidence about economic actions and events to ascertain the level of compatibility between the assignment and the criteria that have been established, the results of the assignment is communicated to the parties interested users.

B.       Audit Objectives:

Audit objectives can generally be classified as follows:

1.        Completeness (Completeness). To ensure that all transactions are recorded in a journal or there actually have been included.

2.        Accuracy (accurancy). Transactions and balances to ensure that no estimate has been recorded at the correct amount, correct calculations, classified, and recorded appropriately. To ensure that all transactions are recorded on the correct dates, details of the account balance in accordance with the general ledger numbers. As well as the sum of the balance has been done properly.

3.        Existence (Existence). To ensure that all assets and liabilities are recorded as the existence or occurrence of a specific date, so it must be recorded transaction actually happened and not fictitious.

4.        Rating (Valuation). To ensure that the principles of generally accepted accounting has been applied correctly.

5.        Classification (Classification). To ensure that the transactions are included in journals classified appropriately. If related to the balance of the numbers listed clients have included classified appropriately.

6.        Boundary separation (Cut-Off). To ensure that transactions close to the balance sheet date are recorded in the proper period. Transactions are likely misstatement is nearing the end of transactions recorded an accounting period a.

7.        Disclosure (Disclosure). To ensure that the accounts and disclosure requirements related to fair has been presented and explained in the financial statements with reasonable contents and footnotes in the report.

C.      Some important things to note regarding the implementation of this audit, among others:

1.      The auditor's understanding of the Audit Object

Objects include the overall audit firm and / or activities that are managed by the company in order to achieve its objectives. In the understanding of object audit, the auditor should obtain information about the resources (capacity activity) owned object auditing in carrying out various activities.

2.      Determination of the scope and purpose of the Audit

Audit shows wide scope (area) of the audit objectives.

3.      Review of the regulations and policies relating to the audit object

This study aimed to obtain information about regulations berhubungaan the audit object is both general and specifically related to the various programs / activities are held on audit objects, so that the auditor can understand the limits of object audit authority and the various programs implemented to achieve purpose.

4.      Early in the development of audit criteria

Criterion is the norm or standard which is a guide for individuals and groups in their activities in the company.

5.      Conclusion The results of the audit

This conclusion is the basis for determining the steps to be taken in the next stage of the audit. The data collected can identify important issues and problems that exist and help the auditor determine whether further investigation is needed.

D.      Types of Audit:

1.      Operational audits. Audit in relation to the efficiency and effectiveness of the resources used to complete the task, as the extent of the practice and procedure relating to the policy set.

2.      Compliance audit. Audits related to the extent of the law, regulations and other obligations to external parties concerned.

3.      Project management and change control auditing. Type of audit is formally known as the auditing system development related to the level of effectiveness efesiensidan various stages of the development life cycle of existing systems

4.      Internal control audits. Eveluasi brkenaan audit with the internal control structure.

5.      Financial audit. Audit relating to the fairness of the financial statements present the financial position, results of operations and cash flows.

6.      Fraud audit. Audit process tracking that leads into the collection of evidence to determine the possibility of fraud that is going on and to solve the problem by increasing accountability.

E.       Auditor’s Opinion

In an opinion about the fairness of the financial statements, the auditor's opinion has five kinds of (Muhammad: 2004), namely:

1.      Without exception reasonable 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, the consistency of application of accounting principles generally acceptable, as well as adequate disclosures in the financial statements.

2.      Unqualified Opinion with Explanatory Language.
The opinion given by the auditor if there are things that require explanatory language, but still the financial statements present fairly the financial position and results of operations of the client company, and coupled with explanatory language.

3.      Reasonable Opinion by Expection
The opinion given by the auditor if: the client is limited by the scope of the audit, the auditor can not perform audit procedures to obtain important or not important information because the conditions are beyond the power of the client and the auditor, the financial statements are not prepared on generally acceptable accounting principles, accounting berteriama commonly used in the preparation of the financial statements are not applied consistently.

4.       Improper Opinion
This opinion is the opposite of the reasonable opinion without exception. Aukuntan give opinions not fair 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 stockholders' equity, and cash flows of the client company. Auditor to give an opinion if he unreasonably restricted the scope of the audit, so it can not gather sufficient competent evidence to support his opinion. Thus the information presented by the client in the financial statements can not be trusted at all, so it can not be used by users of financial information to make decisions.

5.      Opinion not Give Opinion
If the auditor does not express an opinion on the audited financial statements, the audit report is called a report without opinion. This is a condition that causes: a limitation of ordinary nature terhaap broad scope of the audit, if the auditor is not independent in relation to the client.

F.       Definition of audit reports:

Audit report is the audit report that the auditor's report stating that the inspection has been carried out in accordance with the norms accountant examination, accompanied by a fairness opinion regarding the company's financial statements are examined; kind of reasonable opinion known is unconditional (unqualified clean), with reasonable terms (qualified) , refused to give an opinion (adverse), and rejected without giving any opinion at all (disclaimer).