The Demand for Audit and
Other Assurance Services
Chapter 1
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Auditing
Sarbanes-Oxley Act
Enron
WorldCom
The Act established the Public Company
Accounting Oversight Board.
It also requires auditors to report on the
effectiveness of internal control over
financial reporting.
Tyco
Adelphia
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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,
independent person.
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Information and Established
Criteria
To do an audit, there must be information in a
verifiable form and some standards (criteria)
by which the auditor can evaluate the information.
FASB
Criteria
IASB
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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
established criteria.
Transaction
data
Client inquiry
Written and
electronic
Communications
with outsiders
Observations
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Competent, Independent Person
Judgment and
Experience
Competence
Independence
Evaluation
of Evidence
Proper
Conclusion
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Audit of a Tax Return Example
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Auditing Vs Accounting
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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
occurred during the accounting period.
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Auditing and Reducing
Information Risk
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Economic Demand
for Auditing
Demand Driver
Information risk
Auditing can have a significant effect
on information risk.
What is meant by “Information risk”?
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Causes of Information Risk
 Remoteness of information
 Biases and motives of the provider
 Voluminous data
 Complex exchange transactions
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Reducing Information Risk
 User verifies information
 User shares information risk with management
 Audited financial statements are provided
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Relationships Among Auditors,
Client, and External Users
Client or audit
committee hires
auditor
Auditor
Auditor issues
report relied
upon by users to reduce
information risk
Provides capital
Client
External
Users
Client provides financial
statements to users
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Assurance Services
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Assurance Services
An independent professional service
Can be performed by CPAs or by a variety
of other professionals
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Attestation Services
A type of assurance service
CPA reports on the reliability of an assertion
That is the responsibility of another party.
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Attestation Services
1. Audit
3. Review
Historical
Financial
Statements
2. Internal
Control over
Financial
Reporting
5. Other
4. Information
Technology
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Attestation Services on Information
Technology
WebTrust and SysTrust also meet the
criteria of attestation service
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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.
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Green Initiatives Bring Assurance
Opportunities, Competition
Global interest has triggered a surge in reports.
80% of the Global Fortune 250 released
environmental, social, and governance data.
Presented in standalone reports or integrated
into annual financial reports.
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Other Assurance Services Examples
Assess risks of accumulation, distribution,
and storage of digital information…
including
assessing security risks and related
controls over data and other information
stored electronically, including the
adequacy of backup and off-site storage.
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Other Assurance Services Examples
 Compliance with trading policies and procedures
 Compliance with entertainment royalty agreements
 ISO 900 certification
 Environmental audit
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Assurance, Attestation, and
Nonassurance Services
Types of Audits
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Types of Audits
 Operational
 Compliance
 Financial Statement
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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 Company standards for efficiency and
Criteria
effectiveness in payroll department
Available
Evidence
Error reports, payroll records, and
payroll processing costs
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Compliance Audit
Example
Determine whether bank requirements
for loan continuation have been met
Information
Company records
Established
Loan agreement provisions
Criteria
Available
Evidence
Financial statements and
calculations by the auditor
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Audit of Historical Financial
Statements
Example
Annual audit of Boeing’s financial
statements
Information
Boeing's financial statements
Established Generally accepted accounting
Criteria
principles
Available
Evidence
Documents, records, and outside
sources of evidence
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Types of Auditors
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Types of Auditors
 Independent certified public accounting firms
 Governmental general accounting office auditors
 Internal Revenue agents
 Internal auditors
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Requirements for CPA
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Three Requirements for
Becoming a CPA
 Educational requirement
 Uniform CPA examination requirement
 Experience requirement
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CPA Examination Sections
Auditing
and
Attestation
Financial
Accounting
And
Reporting
Business
Environment
and
Concepts
Regulation
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Three Requirements for Becoming a
CPA
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Akuntan Publik
Persyaratan dan Definisi
Di Indonesia
Dasar Hukum

Undang-undang Republik Indonesia Nomor 5 Tahun 2011
Tentang Akuntan Publik, tanggal 3 Mei 2011

Peraturan Pemerintah Republik Indonesia Nomor 20 Tahun
2015 Tentang Praktik Akuntan Publik, tanggal 6 April 2015
Definisi dan Jasa yang Diberikan

Akuntan Publik adalah seseorang yang telah
memperoleh izin untuk memberikan jasa jasa asurans,
yang meliputi:

a. jasa audit atas informasi keuangan historis;

b. jasa reviu atas informasi keuangan historis; dan

c. jasa asurans lainnya.

Jasa asurans tersebut hanya dapat diberikan oleh
Akuntan Publik.

Selain jasa asurans Akuntan Publik dapat memberikan
jasa lainnya yang berkaitan dengan akuntansi,
keuangan, dan manajemen sesuai dengan ketentuan
peraturan perundang-undangan.
Persyaratan Izin Akuntan Publik
(AP)

Untuk mendapatkan izin menjadi Akuntan Publik seseorang harus
memenuhi syarat sebagai berikut:
a)
memiliki sertifikat tanda lulus ujian profesi akuntan publik yang sah;
b)
berpengalaman praktik memberikan jasa;
c)
berdomisili di wilayah Negara Kesatuan Republik Indonesia;
d)
memiliki Nomor Pokok Wajib Pajak;
e)
tidak pernah dikenai sanksi administratif berupa pencabutan izin Akuntan Publik;
f)
tidak pernah dipidana yang telah mempunyai kekuatan hukum tetap karena melakukan
tindak pidana kejahatan yang diancam dengan pidana penjara 5 (lima) tahun atau lebih;
g)
menjadi anggota Asosiasi Profesi Akuntan Publik yang ditetapkan oleh Menteri; dan
h)
tidak berada dalam pengampuan.

Ijin diberikan untuk masa 5 Tahun

Akuntan Publik wajib mendirikan atau menjadi Rekan pada KAP dalam
jangka waktu 180 (seratus delapan puluh) hari sejak izin Akuntan Publik
yang bersangkutan diterbitkan
Persyaratan Ujian Profesi
Akuntan Publik (CPA)

Untuk mengikuti ujian profesi Akuntan Publik, seseorang
harus:

memiliki pengetahuan dan kompetensi di bidang akuntansi atau
telah terdaftar dalam register negara untuk akuntan.

Pengetahuan dan kompetensi di bidang akuntansi iperoleh
melalui:
a)
program pendidikan sarjana (S-1) atau diploma empat (D-IV) di
bidang akuntansi pada perguruan tinggi Indonesia atau perguruan
tinggi luar negeri yang telah disetarakan oleh pihak yang berwenang
sesuai dengan ketentuan peraturan perundang-undangan;
b)
program pendidikan pascasarjana (S-2) atau doktor (S-3) di bidang
akuntansi yang diselenggarakan perguruan tinggi Indonesia atau
perguruan tinggi luar negeri yang telah disetarakan oleh pihak yang
berwenang sesuai dengan ketentuan peraturan perundang-undangan;
c)
pendidikan profesi akuntansi sesuai dengan ketentuan Peraturan
Perundang-undangan; atau
d)
pendidikan profesi Akuntan Publik sesuai dengan ketentuan Peraturan
Perundang-undangan.
Persyaratan Sertifikat Tanda Lulus
Ujian Profesi Akuntan Publik (CPA)


Untuk memperoleh sertifikat tanda lulus ujian profesi
Akuntan Publik yang diterbitkan oleh Asosiasi Profesi,
seseorang harus memenuhi persyaratan sebagai berikut:
a)
lulus ujian profesi Akuntan Publik;
b)
lulus pendidikan sebagaimana dimaksud dalam Pasal 3 ayat (2)
atau terdaftar dalam register negara untuk akuntan;
c)
lulus penilaian pengalaman kerja di bidang akuntansi dari
Asosiasi Profesi; dan
d)
terdaftar sebagai anggota Asosiasi Profesi.
Seseorang yang telah memperoleh sertifikat tanda lulus ujian
profesi Akuntan Publik mendapatkan sebutan profesi dari
Asosiasi Profesi. Saat ini sebutannya adalah Certified Public
Accountant (CPA)
End of Chapter 1
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