Audit Objectives
To obtain reasonable assurance
whether the Financial Statements
are free of material misstatement
To express the opinion whether the F/S are fairly
presented in accordance with the Indonesian
GAAP
Audit Scope
AUDIT
Examination of the
historical financial statements
in accordance with
Auditing Standards established by
the Indonesian Institute of Accountants
Audit Scope
(continued)
AUDIT
AUDITING
STANDARDS
SPAP
AUDIT is performed in accordance
with the AUDITING STANDARD
Audit Process
PLANNING
FIELDWORK
SUMMARIZING
AUDITOR’S
OPINION
Audit Result
UNQUALIFIED
QUALIFIED
AUDITOR’S
OPINION
ADVERSE
DISCLAIMER
Audit
Audit Planning
Framework
Process
Client’s
Expectations
Identified
Business Risks
Identified
Fraud Risks
Identified
Other Audit Risks
Interim
F/S
DEVELOP AUDIT
STRATEGY/PROGRAM
ENGAGE.
TEAM
STRUCTURE &
JOB
ALLOCATION
AUDIT
TIME TABLE &
ESTIMATED
HOURS
AUDIT
MATERIALITY
LEVEL
AUDIT
WORK
PROGRAM
STRATEGY/
PLAN FOR
SIGNIFICANT
ISSUES
Audit
Process
Audit Planning
Documentation
Administrative Document
 Minutes of Meeting
 Audit Engagement Letter (AEL)
 Estimated Audit Time and Chargeable
Audit Fees
Strategic Planning Document
 Audit Planning Memorandum (APM)
 Audit Work Program
Audit
Process
Audit Planning
Documentation (cont’d)
Risk Tool Document
 Fraud Risk Identification Form
 Going Concern Assessment Form
 Litigation, Claim & Assessment Form
Audit
Process
SIGNIFICANT
PROCESS
IDENTIFICATION
Audit Fieldwork
Framework
YES
WALKTHROUGH
EFFECTIVE
DESIGN ?
TEST OF
CONTROL
NO
NO
SUBSTANTIVE
TEST
AUDIT WORK PROGRAM
EFFECTIVE
IMPLEMENTATION ?
YES
MINIMUM
AUDIT
PROCEDURES
Audit
Process
Audit Fieldwork
(cont’d)
TEST OF CONTROL FRAMEWORK
SIGNIFICANT
CYCLE
WALKTHROUGH
DIVIDED INTO
SEVERAL
PROCESS
DEFINE
CONTROL’S
ATTRIBUTES
OF EACH PROCESS
COMPLIANCE
TEST OF
CONTROL’S
ATTRIBUTES
DOCUMENT SAMPLING
Audit
Process
Audit Fieldwork
(cont’d)
SUBSTANTIVE TEST FRAMEWORK
YEAR-END
FINANCIAL
STATEMENTS
MATERIAL
ACCOUNT
IDENTIFICATION
MATERIALITY LEVEL
YES
MATERIAL
AMOUNT?
NO
NATURE
ACCOUNT
DESCRIPTION
SUBSTANTIVE
TEST
AUDIT WORK PROGRAM
Audit
Process
Audit Fieldwork
(cont’d)
SUBSTANTIVE TEST FRAMEWORK (Cont’d)
SUBSTANTIVE
TEST
AUDIT WORK PROGRAM
F/S
ACCOUNT
DEFINE
AUDIT
OBJECTIVES
RELATE TO
F/S
ASSERTIONS
DETERMINE
AUDIT
PROCEDURES
Audit
Process
Audit Fieldwork
(cont’d)
FINANCIAL STATEMENT ASSERTIONS
Assertion
Definition
Existence
An asset or liability exists at a
given date.
Rights and
Obligations
An asset or liability pertains to
the client at a given date.
Completeness
No material unrecorded assets,
liabilities,
transactions,
or
events, or undisclosed items.
Audit
Process
Audit Fieldwork
(cont’d)
FINANCIAL STATEMENT ASSERTIONS (Cont’d)
Assertion
Definition
Occurrence
A transaction or event took place
that pertains to the client during the
period.
Valuation
An asset or liability is recorded at
an appropriate carrying value.
Measurement
A transaction or event is recorded
at the proper amount and revenue
or expense is allocated to the
proper period.
Audit
Process
Audit Fieldwork
(cont’d)
FINANCIAL STATEMENT ASSERTIONS (Cont’d)
Assertion
Definition
Presentation and
Disclosure
An item is disclosed, classified,
and described in accordance
with the applicable financial
reporting framework.
Audit
Process
Audit Fieldwork
(cont’d)
AUDIT WORK PROGRAM
CONTENT
AUDIT OBJECTIVES
F/S ASSERTION
AUDIT PROCEDURES
Audit
Process
Audit Fieldwork
(cont’d)
ADDITIONAL AUDIT PROCEDURES
 Related Party Transactions Analysis (by using
Related Party Transactions Practice Aid)


Related Party Transactions Identification
Perform Audit Procedures for assuring the proper
accounting and disclosure of related parties transaction
 Work of Expert Analysis (by using Work of An
Expert Form)

Perform Minimum Procedures for using the work of
expert as our audit evidence
Audit
Process
Audit Fieldwork
(cont’d)
WORKING PAPER (WP)
DOCUMENTATION STANDARD
 Tickmark Standard
 Indexing Standard
Audit
Process
Audit Summarizing
Documentation:
 Summary of Audit or Client’s Adjustment or Reclassification
 Subsequent Review Analysis
 Financial Statements Review Tool
 Audit Summary Memorandum (ASM)
 Findings
and Recommendation Report (Management
Letter)
 Management’s Representation Letter
 Disclosure, Securities & SPAP Checklist