An audit can provide additional independent assurance about the accuracy of financial reporting as a tax base. Not only that, the audit is useful as an independent basis for other parties in the legal field to resolve problems in bankruptcy, manage inheritance and entrusted assets, and determine the implementation of partnership agreements in a proper manner.
Procedure in Conducting Audit
The Indonesian Institute of Certified Public Accountants (IAPI) has established and ratified several standards that are now the basic reference in conducting financial hong kong audit firm, including general auditing standards, fieldwork standards and interpretation reporting standards.
1. General Auditing Standards
The procedure using general auditing standards consists of three parts, namely:
- The audit executive, or what is commonly referred to as an auditor, is a person or more with adequate technical expertise and training experience as an auditor.
- The auditor maintains a mentality of all matters relating to the engagement and independence must be maintained.
- Auditors are required to utilize their professional expertise in the audit implementation process to reporting activities carefully and thoroughly.
2. Fieldwork Standard
Fieldwork standards are more specific in terms of covering audit performance in the field.
- Basically, field performance can depend on the planning carried out. Therefore, as professionals, all work must be well planned and mature. If it is necessary to use assistants, they must be properly supervised.
- Adequate understanding of internal control.
- Audit evidence obtained through observational inspections must be competent.
3. Interpretation Reporting Standards
The interpretation reporting standard consists of 4 parts, namely:
- The audit report must state if the financial statements have been prepared in accordance with generally accepted accounting principles.
- The results of the auditor’s report must show consistency.
- Informative disclosures in the financial statements should be considered adequate, unless otherwise stated in the auditor’s report.
- The auditor’s report must contain a statement of opinion regarding the financial statements as a whole that such a statement cannot be given.