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Pertemuan 1 ASP

1) Auditing is necessary due to conflicts of interest between management and users of financial reports, the complexity of financial information, and the remoteness of users from companies' accounting records. 2) Independent auditors provide attestation services where they issue reports on the reliability of financial statements. They also provide non-assurance services like accounting, tax, and consulting work. 3) The main differences between auditing and accounting are that auditing involves obtaining and evaluating evidence objectively, while accounting prepares and records financial information. Auditors express opinions on financial statements, while management is responsible for the statements.

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0% found this document useful (0 votes)
10 views17 pages

Pertemuan 1 ASP

1) Auditing is necessary due to conflicts of interest between management and users of financial reports, the complexity of financial information, and the remoteness of users from companies' accounting records. 2) Independent auditors provide attestation services where they issue reports on the reliability of financial statements. They also provide non-assurance services like accounting, tax, and consulting work. 3) The main differences between auditing and accounting are that auditing involves obtaining and evaluating evidence objectively, while accounting prepares and records financial information. Auditors express opinions on financial statements, while management is responsible for the statements.

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maretta
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© © All Rights Reserved
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INTRODUCTION

TO AUDITING
(EXAMINATION)
WHY IS AUDITING NECESSARY?

The need for


independent auditing
of financial reports
can be seen in the
following conditions:

Conflict of interest
(Conflict Of
Interest)
Consequences (Consequence)

Published financial reports provide


important information, and in
some cases, are the only source of
information used to make
significant investment decisions,
borrowing, and other decisions.
Complexity (Complexity)
• As the level of complexity increases, the risk of
misinterpretation and the risk of accidental error also
increases. Users find it increasingly difficult or even
impossible to evaluate the quality of financial
reports by themselves, so they rely on public
accountants or independent auditors to assess the
quality of the information contained in the financial
statements.
Remoteness (Remoteness)
• Users of financial statements consider it impractical
to seek direct access to key accounting records in
order to carry out verification of financial statement
assertions on their own, because of distance, time,
and cost factors. Instead of trusting the quality of
financial data so hard, once again users rely more on
the reports of public accountants or independent
auditors to meet their needs.
Services provided by
independent auditors
1. Guarantee services
Attestation service is a type of guarantee service performed by the public
accountant or independent auditor by issuing a written report stating a
conclusion regarding the reliability of a written statement made by another
party.
There are three forms of attestation services, namely:

Attestation services Audit of historical financial Study (Review) on historical


statements financial statements
• Other attestation services
• most of the other underwriting
services provided by the public accounting
profession or independent auditors are not
attest services. These services are similar
to attestation services, in that the auditor
must be independent and must provide
assurance on the information that will be
used by decision makers.
2. Non-guarantor services ( Non Assurance Services)
Non-guarantee services are services provided by public accountants or independent
auditors in which they do not provide an opinion, negative belief, summary of
findings, or other forms of belief. The public accountant profession or independent
auditor also provides various other types of services which generally do not or are
not an underwriting service. The types of non-guarantee services provided by public
accountants or independent auditors are accounting and bookkeeping services, tax
services, and management consulting services
Definition of Auditing (Examination)
auditing is a systematic process for obtaining and evaluating evidence
objectively related to assertions about economic actions and events to
determine the degree of conformity between these assertions with
predetermined criteria and communicate the results to the parties. interested
party
Key sentences in the auditing definition above:
1.Systematic process
2.Obtain and evaluate evidence objectively
3.Assertions about economic actions and events
4.The level of conformity between assertions and predetermined criteria
5.Communicate the results to interested parties
THE DIFFERENCE BETWEEN
AUDITING AND ACCOUNTING
Information Auditing Accounting
Method Obtain and assess or Identify events and then
evaluate evidence measure, record, classify
relating to financial and summarize them in
statements prepared by accounting records
management

Destination Express an opinion on Prepare and distribute


the fairness of financial financial reports
statements

Responsible party Auditing report on Management


auditor responsibility responsibility financial
statements
• Judging from the implementation
TYPES OF • Internal audit (internal examination)
AUDITING • External audit (External Auditing)
(EXAMINATI • Govermental audit (Government
ON) inspection)

Judging from the
Judging
object from
being the
audited
object being audited

Financial statement
Financial statement
audit (Financial
audit (Financial
Statement audit)
Statement audit)

Performance Checks
Performance Checks
(Management audit or
(Management audit or
operational audit)
operational audit)

Check of compliance
or conformity
(compliance audit)
d) Investigative auditing (Onvestigation audit / Forensic audit / Fraud audit)
investigative examination is a methodology to clearly resolve problems
related to indications of fraud from start to finish. In other words, an
investigative examination is an investigation based on law and a sense of
justice to seek the truth with a high level of truth regarding an issue.
Types of Auditors (Examiners)
1. Internal examination (Internal auditor)
2. External Examination or Independent Auditor (External / Independent
auditor)
3. Government auditors
AUDITING STANDARDS
(EXAMINATIONS)

Auditing standards are a measure of the implementation of actions which are general guidelines for
auditors in conducting audits. Auditing standards also contain an understanding as a standard
measure of the quality of auditing services

General Standards
• general standard consists of three standards

Adequate technical training and skill

Mental attitude independence

Accuracy and thoroughness in carrying out work


• Field work standards consist of three
Field Work Standards
standards, namely:

Adequate planning and


adequate supervision

Understand an internal
control

Obtain sufficient
evidence of competence
Reporting
Statement of standards
opinion • reporting standards
consist of four
standards:

Financial reports
are presented in
Sufficient accordance with
disclosure Financial
Accounting
Standards

Consistency in
the application
of Financial
Accounting
Standards

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