The Demand for Audit and Other Assurance Services

(1)

The Demand for Audit

and Other Assurance

Services

(2)

Sarbanes-Oxley Act

The Act established the Public Company Accounting Oversight Board.

It also requires auditors to attest to

management reports on the effectiveness of internal control over financial reporting.

(3)

Learning Objective 1

(4)

Nature of Auditing (Konrath,

2002:5)

Auditing Suatu Proses sistematis untuk secara

objektif mendapatkan & mengevaluasi bukti

Mengenai asersi tentang kegiatan-kegiatan dan kejadian-kejadian ekonomi untuk meyakinkan tingkat keterkaitan antara asersi tersebut dan

kriteria yang telah ditetapkan & mengkomunikasikan hasilnya kepada pihak-pihak yang berkepentingan

Auditing merupakan salah satu bentuk ATESTESI

Yakni Suatu komunikasi dari seorang expert perihal Kesimpulan tentang realibilitas dari pernyataan

(5)

Nature of Auditing

Auditing is the accumulation and evaluation

of evidence about information to determine and report on the degree of correspondence

between the information and established criteria. Auditing should be done by a competent,

(6)

Information and Established

Criteria

To do an audit, there must be information in a

verifiable form and some standards (criteria)

(7)

Accumulating Evidence and

Evaluating Evidence

Evidence is any information used by the auditor

to determine whether the information being audited is stated in accordance with the

(8)

Competent, Independent

Person

The auditor must be qualified to understand the criteria used and must be competent to know

the types and amount of evidence to accumulate to reach the proper conclusion after the

evidence has been examined.

The competence of the individual performing the audit is of little value if he or she is biased in the accumulation and evaluation of evidence.

(9)

Audit Report

The final stage in the auditing process is preparing the Audit Report, which is the

(10)

Audit of a Tax Return Example

Internal Internal Revenue Revenue agent agent Competent, independent person Examines cancelled checks and other supporting records Accumulates and evaluates evidence Determines correspondence Federal tax Federal tax returns filed returns filed by taxpayer by taxpayer Information Internal Revenue Code and all interpretations Established criteria

Report on tax deficiencies Report on results

(11)

Learning Objective 2

Distinguish between auditing

and accounting.

(12)

Distinguish Between

Auditing and Accounting

Accounting is the recording, classifying,

and summarizing of economic events for the purpose of providing financial information used in decision making.

Auditing is determining whether

recorded information properly

reflects the economic events that

(13)

(14)

Learning Objective 3

Explain the importance of auditing

in reducing information risk.

(15)

Economic Demand

for Auditing

Information risk reflects the possibility that the information upon which the business risk decision was made was inaccurate. Auditing can have a significant effect

(16)

Learning Objective 4

List the causes of information

risk, and explain how this risk

may be reduced.

(17)

Causes of Information Risk

 Remoteness of information

 Biases and motives of the provider

 Voluminous data

(18)

Reducing Information Risk

 User verifies information

 User shares information risk with management

(19)

Learning Objective 5

Describe assurance services

and distinguish audit services

from other assurance and

nonassurance services

provided by CPAs.

(20)

Assurance Services

An assurance service is an independent professional service that improves the

quality of information for decision makers. Assurance services can be performed by CPAs or by a variety of other professionals.

(21)

Assurance Services (Konrath,

2002:4)

Yang dikelola adalah:

• Reliabilitas (keandalan) dari sistem informasi • Cukup tidaknya sistem manajemen resiko

• Efektifitas dari sistem pengukuran kinerja • Cukup tidaknya keamanan atas transaksi komersial

(22)

Attestation Services

An attestation service is a type of assurance service in which the CPA firm issues a

report about the reliability of an assertion that is the responsibility of another party.

An attestation memberikan opini atas reliabilitas dari pernyataan seseorang

(23)

Attestation Services

1. Audit of historical financial statements

2. Attestation of internal control over financial reporting

3. Review of historical financial statements

(24)

Attestation Services (Konrath,

2002:4)

1. Assersion on Internal Control

2. Assersion on Compliance to the Contract Points Agreement

(25)

Relationships Among Auditors,

Client, and External Users

Auditor Auditor Client or audit committee hires auditor Auditor issues report relied upon by users

(26)

Other Assurance Services

Most of the other assurance services that CPAs provide do not meet the formal definition

of attestation services.

The CPA is not required to issue a written report. The assurance does not have to be about the

reliability of another party’s assertion about compliance with specified criteria.

(27)

AICPA Assurance Services

The AICPA formed the Special Committee on Assurance Services (SCAS).

(28)

Attestation Services on

Information Technology

WebTrust is an attestation service, and the WebTrust seal is a symbolic representation

of the CPA’s report on management’s assertions about its disclosure of

(29)

Attestation Services on

Information Technology

SysTrust is an attest-type engagement

to evaluate and test system reliability in areas such as security and data integrity.

(30)

Principles for WebTrust and

SysTrust Services

1. Online privacy 2. Security 3. Processing integrity 4. Availability 5. Confidentiality

(31)

Nonassurance Services

Provided by CPAs

1. Accounting and bookkeeping services 2. Tax services

(32)

Audits Reviews

Internal Control

over Financial Reporting

(38)

Assurance, Attestation, and

Nonassurance Services

Certain Management Consulting NONASSURANCE SERVICES NONASSURANCE SERVICES Other Management Consulting Tax Services Accounting and Bookkeeping

(39)

Learning Objective 6

Differentiate the three main

types of audits.

(40)

Types of Audits

 Operational

 Compliance

(41)

Audit Manajemen (Agus

Soekrisno, 2012:12)

Audit Prosedur yang dilakukan mencakup:

 Analytical Review Procedures, yaitu membanding kan LK periode berjalan dengan Masa Lalu, Budget dg realisasinya serta Analisis Rasio.

 Evaluasi atas Management Control System, yaitu Tujuannya utk mengetahui SPM dan SPI memadai

(42)

4 Tahapan Audit Manajemen

(Agus Soekrisno, 2012:12)

4 Tahapan Audit Manajemen yang mencakup:  Preliminary Survey

 Review and Testing Management Control System  Detailed Examination

 Report Developement

Audit Manajemen dilakukan oleh:  Internal Auditor

 KAP

(43)

3 Type Audit Manajemen

(Agus Soekrisno, 2012:12)

3 Type Audit Manajemen yang mencakup:  Functional Audits

 Organizational Audits  Special Assignment

(44)

Operational Audit

Example Evaluate computerized payroll system for efficiency and effectiveness

Information Number of records processed, costs of the department, and number of errors Established

Criteria

Company standards for efficiency and effectiveness in payroll department

Available Evidence

Error reports, payroll records, and payroll processing costs

(45)

Auditing (Agus Soekrisno,

2012:4)

Auditing Suatu pemeriksanaan yang dilakukan

Secara kritis & sistematis, oleh pihak yang independen Terhadap LK yang telah disusun oleh Manajemen,

beserta catatan” pembukuan & bukti” pendukungnya, dg tujuan utk memberikan pendapat mengenai

(46)

Auditing (Agus Soekrisno,

2012:4)

Laporan Keuangan yg wajib diperiksa:

 Statement of Financial Posisition

 Statement of Comprehensive Income  Statement of Changes Equity

(47)

Auditing & Asersi Manajemen

(Agus Soekrisno, 2012:4)

Asersi adalah Representasi manajemen mengenai

Kewajaran Laporan Keuangan

Klasifikasi asersi Laporan Keuangan terdiri dari:

 Existence atau Occurance  Completeness

(48)

Auditing & Asersi Manajemen

(Agus Soekrisno, 2012:4)

Tugas Auditor - Asersi adalah untuk menentukan

apakah representasi (asersi) tersebut betul-betul wajar, Maksudnya untuk meyakinkan apakah “tingkat

keterkaitan antara asersi dan kriteria yang ditetapkan” Kriteria: GAAP, SFAS, APBO, ARB

(49)

Tahapan – tahapan Audit

(Agus Soekrisno, 2012:4)

 KAP dihubungi oleh Klien

 KAP bertemu klien membicarakan alasan audit, Pernah diaudit?, jenis usaha, data akuntansi

manual/komputerisasi?, sistem enyimbapan bukti  KAP mengajukan audit Proposal

(50)

Jenis-jenis Audit (Agus

Soekrisno, 2012:4)

 General Audit

Suatu Pemeriksaan umum atas LK yg dilakukan KAP Independen dg tujuan utk bisa memberikan pendapat atas kewajaran atas LK

secara keseluruhan. (Sesuai dg Standard Professional

Akuntan Publik/ ISA/

Panduan Audit Entitas Bisnis dan memperhatikan Kode Etik Profesi Akuntan Publik)

 Special Audit

Suatu Pemeriksaan terbatas yang dimintakan oleh

Auditee yg dilakukan oleh Auditor Independen dan tidak perlu memberikan Pendapat atas Kewajaran LK. Semisal cek atas

Piutang apa terjadi fraud? Berapa besar? Bgm modus?

(51)

Audit Kepatuhan/ Compliance

Audit (Agus Soekrisno,

2012:11)

Pemeriksaan untuk mengetahui apakah

perusahaan sudah mentaati

peraturan-peraturan dan kebijakan yang berlaku

baik yang ditetapkan leh internal

(52)

Compliance Audit

Example Determine whether bank requirements for loan continuation have been met Information Company records

Established

Criteria Loan agreement provisions Available

Evidence

Financial statements and calculations by the auditor

(53)

Audit Internal (Agus

Soekrisno, 2012:12)

Pemeriksaan yang dilakukan oleh bagian

internal perusahaan baik untuk LK

ataupun Catatan Akuntansi Perusahaan,

maupun ketaatan terhadap kebijakan

(54)

Computer Audit(Agus

Soekrisno, 2012:12)

Pemeriksaan oleh KAP thd pemrosesan

data akuntansi yang menggunakan

Electronic Data Processing (EDP), ada 2

metode:

• Audit Around the Computer

(pemeriksaan thd input & output saja)

• Audit Through the Computer

(55)

Audit of Historical Financial

Statements

Example Annual audit of Boeing’s financial statements

Information Boeing's financial statements Established

Criteria

Generally accepted accounting principles

(56)

Learning Objective 7

Identify the primary types

of auditors.

(57)

Types of Auditors

 Internal auditors

 Independent certified public accounting firms

 Internal Revenue agents

(58)

Learning Objective 8

Describe the requirements

for becoming a CPA.

(59)

Three Requirements for

Becoming a CPA

 Educational requirement

 Uniform CPA examination requirement

(60)

CPA Examination Sections

 Auditing and Attestation

 Financial Accounting and Reporting

 Regulation

(61)