COMPLETING the AUDIT

Boynton, Johnson, and Kell ‘MODERN AUDITING” Chapter 19 S.Munawir AUDITING MODERN, Bab 12

Chapter Overview

COMPLETING the AUDIT

1. Tests of Revenue and Expenses Accounts2. Tests of Accounting Estimate3. Completing the audit:

Making subsequent event reviewReading minutes of meetingsObtaining evidence concerning litigation, claims and assessmentsObtaining client representation letterPerforming analytical procedures

4. Evaluation of the finding & Communication

Test of Revenue & Expense Account

Tujuan: terjadinya, kelengkapannya, penilaian atau alokasinya, serta penyajian dan pengungkapan.Prosedur pengujian: (1) Prosedur Analitis(2) Pemgujian secara detailPertimbangan: a. Struktur pengendalian internb. Frekuensi transaksi,c. Hasil ratio dalam prosedur analitis.d. Perlunya perhatian khusus terhadap rekening

Tests of Accounting Estimate

Estimasi Akuntansi:Taksiran tak trtaginya piutangPersediaan yang usangDepresiasi dan AmortisasiBiaya Jaminan (Garansi)Biaya PensiunPendapatan penumpang pesawat terbangPendapatan kontrak jangka panjang.

Standard of Auditing Statement No.57:a. memperoleh keyakian telah dilakukanya estimasi.b. meyakinkan bhwa estimasi telah memadai.

PROSEDUR AUDIT

WawancaraMembaca notulen rapatPelajari kontrak,Review laporan-laporan pihak ketigaAnalisi biaya kuasa hukum (indikasi adanya proses peradilan yang belum selesai)Review kertas kerja

Subsequent Event (time dimension)

Balance sheet End of Field work Report issuance

Date 31/12 1/3 (report date) date,15 Mart ! ! !

! ! Subsequent event

Subsequent period

Peristiwa Kemudian

Karakteristiknya:1. Mempengaruhi secara material

terhadap Laporan Keuangan.2. Terjadi setelah tanggal neraca

tetapi sebelum diterbitkan laporan keuangan auditan dan laporan audit.

Types of Events

Type 1 subsequent event provide additional evidence with respect to conditions that existed at the date of the balance sheet and affect the estimates inherent in the process of preparing financial statement require adjustment

Type 2 subsequent event provide evident with respect to condition that did not exist of the balance sheet date but arose subsequent of that date require disclosure

Example of the two types of events:

Type 1Realization of recorded

year end assets such receivable and inventory, at different amount than recorded.

Settlement of recorded year-end estimated liabilities, such as litigation and product warranties, at different amount than recorded

Type 2Issuance of long term

bond or preferred stock or common stock.

Purchase of business, merger

Casualty losses resulting from fire or flood

Auditing Procedures in the Subsequent events

Read the latest interim financial statements, and comparing with the circumstances ,Inquire of management:a. any contingent liabilities or commitments,b. any significant changes in capital stock, LTDc. The current status of items inccnclusive datad. any unusual adjustmentRead minute of meeting of directors, stockholder,and appropriate committee Inquire of client’s legal counselObtain letter of representation about subsequent eventMake additional inquire or perform additional procedures.

Evaluating The Findings

Making final assessment of materiality and risk,Evaluating whether there is doubt about the entity’s ability to continue as going concersMaking technical review of financial statements,Formulating opinion and drafting audit report.Making final review(s) of working papers.

Effect on Auditor’s Report

Will effect in auditor’s report departure from the auditor’s standard report.Auditor should express either a qualified opinion or an adverse opinion, depend on materiality, because the financial statements are not presented fairly in accordance with GAAP

COMMUNICATING WITH THE CLIENT

Communicating Internal Control Matters:a. the communicating preferable should in writingb. The distribution of the report should ordinary

be restricted to audit committee, management. c. The communication should be made in a timely

manner either during the audit or after its conclusion.

Communicating matters pertaining to Conduct of AuditPreparing management letter

Summary of Completing the Audit

Post Audit ResponsibilitiesSubsequent events occurring between the date and issuance of the auditor’s report.SAS 1 = the auditor has no responsibility to make any inquire or to perform any auditing procedures during this time period to discover any material subsequent events. However if knowledge of such an event he should consider,…..standard report (adjustment, disclosure) and may use dual dating.The discovery of exiting facts.a. the auditor has no responsibility for post audit discovery fact existing,(but unknown)b. the auditor become aware of such facts, and the facts may have affected the report that was issued. The discovery of omitted proceduresFigure 19-5 summary ch 19.

Special Report

Financial statement that are prepared in basis of accounting other than GAAP.Specified element, account, or items of a Fin.Stt.Compliance with aspects of contractual agreement, or regulatory requirement,Financial presentation to comply with contractual agreement or regulatory provision,Financial information presented in prescribe form or schedules that require a prescribe form of auditors’ report.

Financial statement that are prepared in basis of accounting other than GAAP.(OCBOA).

1. FS should indicated the basis of accounting2.The auditor’s report contain four paragraph a. introductory, b. scope, c. explanatory, d. opinion.