Slide 1.

International Auditing Overview

Principles of Auditing: An Introduction to
International Standards on Auditing - Ch. 1

Rick Stephan Hayes,

Roger Dassen, Arnold Schilder,
Philip Wallage

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.2

Historical background
Records of auditing activity in early Babylonian
times (around 3,000 BC).
Ancient China, Greece and Rome.
The Latin meaning of the word 'auditor' was a
'hearer or listener' because in Rome auditors
heard taxpayers.
Modern auditing dates
to beginning of the
modern corporation

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.3

Brief history of auditing

The attitude of profit maximization from

end middle ages - merchant houses in
Italy.
Double-entry bookkeeping was first
described in Italy (Pacioli 1494).
Industrial Revolution Great-Britain
1780 lead to the emergence of large
industrial companies.
1853 the Society of Accountants in
Edinburgh was founded.
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.4

Perkembangan Pengauditan di Indonesia

Tahun 1973 : IAI menetapkan :

PAI (Prinsip Akuntansi Indonesia)
NPA (Norma Pemeriksaan Akuntan)
Tahun 1994 : IAI menyusun SPAP & SAK
Tahun 2007 : berdiri IAPI (Institute Akuntan
Publik Indonesia)
Tahun 2008 : IAPI diakui pemerintah sbg
organisasi profesi akuntan publik.
Tahun 2011 : IAI menetapkan IFRS
Tahun 2012 : IAPI mengadopsi ISA (tahun 2013
utk entitas publik dan tahun 2014 utk entitas
selain emiten) :
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.5

By the audit process, the auditor enhances the

usefulness and value of the financial
statements, and also increases the credibility
of other non-audited information released by
management.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.6

The function of auditing is to lend credibility to the financial

statements

Is the company a going concern?

Is it free of fraud?
Is it managed properly?
Is there integrity in its database?
Do directors have proper and adequate
information to make decisions?
Are there adequate controls?
What effect do the company's products and by-
products have on the environment?
Can an unfortunate mistake bring this company
to its knees?

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.7

International Accounting and Auditing

Standards

International Financial Reporting Standards

(IFRS).

International Standards on Auditing (ISA)

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.8

ISAs
100-999 International Standards on Auditing
(ISAs)
100-199 Introductory Matters
120 Framework of International Standards on
Auditing
200-299 General Principles And Responsibilities
200 Objective and General Principles Governing an
Audit of Financial Statements
210 Terms of Audit Engagements
220 Quality Control for Audit Work
230 Documentation (ED)

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.9

ISAs
240 The Auditors Responsibility to Consider Fraud and Error in
an Audit of Financial Statements (ED)
250 Consideration of Laws and Regulations in an Audit of
Financial Statements
260 The Auditors Communication with Those Charged with
Governance (ED - Final)
300-499 Risk Assessment And Response To Assessed
Risks
300 Planning (ED)
310 Knowledge of the Business
315 Understanding the Entity and Its Environment and
Assessing the Risks of Material Misstatement (ED)
320 Materiality in the Identification and Evaluation of
Misstatements (ED final)
330 The Auditors Procedures in Response to Assessed Risks
(ED)

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.10

ISAs

400 Risk Assessments and Internal Control

401 Auditing in a Computer Information Systems
Environment
402 Audit Considerations Relating to Entities Using
Service Organizations
500-599 Audit Evidence
500 Audit Evidence
500R Audit Evidence
501 Audit EvidenceAdditional Considerations for
Specific Items
505 External Confirmations
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.11

ISAs
510 Initial EngagementsOpening Balances
520 Analytical Procedures
530 Audit Sampling and Other Selective Testing Procedures
540 Auditing Accounting Estimates and Related Disclosures
(Other than Those Involving Fair Value Measurements and
Disclosures) (ED- final)
545 Auditing Fair Value Measurements and Disclosures
550 Related Parties (ED)
560 Subsequent Events
570 Going Concern
580 Management Representations

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.12

600-699 Using Work Of Others ISAs

600 The Audit of Group Financial Statements (ED final)
610 Considering the Work of Internal Auditing
620 Using the Work of an Expert
700-799 Audit Conclusions And Reporting
700 The Auditors Report on Financial Statements
701 The Independent Auditors Report on Other Historical Financial
Information (ED final - new)
705 Modifications to the Opinion in the Independent Auditors
Report (ED final - new)
706 Emphasis of Matter Paragraphs and Other Matters Paragraphs
in the Independent Auditors Report (ED final - new)
710 Comparatives
720 Other Information in Documents Containing Audited Financial
Statements
800-899 Specialized Areas
800 The Independent Auditors Report on Summary Audited
Financial Statements (ED final)

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.13

2000-2699 International Standards on Review Engagements

(ISREs) ISRE
2400 Engagements to Review Financial Statements (Previously ISA
910)
2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity (ED - new)
3000-3699 International Standards on Assurance Engagements
(ISAEs) ISAE
3000 Assurance Engagements (Previously ISAE 100)
3000R Assurance Engagements Other Than Audits or Reviews of
Historical Financial Information
3400 The Examination of Prospective Financial Information
(Previously ISA 810)
4000-4699 International Standards on Related Services (ISRSs)
4400 Engagements to Perform Agreed-upon Procedures Regarding
Financial Information (Previously ISA 920) ISRS
4410 Engagements to Compile Financial
Information (Previously ISA 930)

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.14

Struktur Baru Standar Audit yang Ditetapkan

oleh Institut Akuntan Publik Indonesia

Standar Audit (SA)

Penilaian Risiko Penggunaan

Prinsip Umum Kesimpulan
dan Respons Hasil Area
dan Tanggung Bukti Audit Audit dan
terhadap Risiko Pekerjaan Khusus
J awab Pelaporan
yangDinilai Pihak Lain
SA 500 SA 600 SA 700 SA 800
SA 200 SA 300
SA 501
SA 610 SA 705 SA 805
SA 210 SA 315 SA 505
SA 620
SA 220 SA 510 SA 706 SA 810
SA 320
SA 520
SA 230
SA 330 SA 530 SA 710
SA 240 SA 540
SA 402
SA 720
SA 250 SA 550
SA 450
SA 560
SA 260
SA 570
SA 265
SA 580 3
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.15

Standar Audit
Informasi Keuangan Historis

200 - 299 Prinsip-prinsip Umum dan Tanggungjawab

300 499 Penilaian risiko dan respons terhadap risiko yang telah dinilai

500 599 Bukti Audit

600 699 Penggunaan pekerjaan pihak lain
700 799 Kesimpulan audit dan pelaporan
800 899 Area-area khusus

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.16

Standar Audit

Standar Audit
SA 210, Persetujuan atas Syarat-syarat Perikatan Audit (SA 210)
SA 220, Pengendalian Mutu untuk Audit atas Laporan Keuangan (SA 220)

16
SA 230, Dokumentasi Audit (SA 230)
SA 240, Tanggung Jawab Auditor Terkait Dengan Kecurangan Dalam Suatu Audit Atas
Laporan Keuangan (SA 240)
SA 250, Pertimbangan Atas Peraturan Perundang-Undangan Dalam Audit Laporan Keuangan
(SA 250)
SA 260, Komunikasi Dengan Pihak Yang Bertanggung Jawab Atas Tata Kelola (SA 260)
SA 265, Pengomunikasian Defisiensi Dalam Pengendalian Internal Kepada Pihak Yang
Bertanggung Jawab Atas Tata Kelola Dan Manajemen (SA 265)
SA 300, Perencanaan Suatu Audit Atas Laporan Keuangan (SA 300)
SA 315, Pengindentifikasian Dan Penilaian Risiko Salah Saji Material Melalui Pemahaman
Atas Entitas Dan Lingkungannya (SA 315)
SA 320, Materialitas Dalam Perencanaan Dan Pelaksanaan Audit (SA 320)
SA 330, Respons Auditor Terhadap Risiko Yang Telah Dinilai (SA 330)
SA 402, Pertimbangan Audit Terkait Dengan Entitas Yang Menggunakan Suatu OrganisasiJasa
(SA 402)
SA 450, Pengevaluasian Atas Salah Saji Yang Diidentifikasi Selama Audit (SA 450)

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.17

Standar Audit

SA 500, Bukti Audit. (SA 500)

SA 501, Bukti Audit - Pertimbangan Spesifik Atas Unsur Pilihan. (SA 501)
SA 505, Konfirmasi Eksternal. (SA 505)
SA 510, Perikatan Audit Tahun Pertama - Saldo Awal. (SA 510)

17
SA 520, Prosedur Analitis. (SA 520)
SA 530, Sampling Audit. (SA 530)
SA 540, Audit Atas Estimasi Akuntansi, Termasuk Estimasi Akuntansi Nilai
Wajar, Dan Pengungkapan Yang Bersangkutan. (SA 540)
SA 550, Pihak Berelasi. (SA 550)
SA 560, Peristiwa Kemudian. (SA 560)
SA 570, Kelangsungan Usaha. (SA 570)
SA 580, Representasi Tertulis. (SA 580)
Panduan
Guide to Using ISAs in the Audits of SME, 3 rd ed. Volume 1 (Guide, Vol
1)
Guide to Using ISAs in the Audits of SME, 3 rd ed. Volume 2 (Guide, Vol
2)
Buku teks
Collings, Steve, Intepretation and Application of International Standards on
Auditing, John Wiley & Son, 2011 (Collings)
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.18

Tujuan menyeluruh suatu audit (ISA 200)

Memperoleh asurans yang layak

mengenai apakah laporan keuangan
secara menyeluruh bebas dari salah saji
yang material, yang disebabkan oleh
kecurangan atau kesalahan, untuk
memungkinkan auditor memberikan
pendapat mengenai apakah laporan
keuangan dibuat, dalam segala hal yang
material, sesuai dengan kerangka
pelaporan keuangan yang berlaku; dan 18
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.19

Tujuan menyeluruh suatu audit (ISA 200)

Melaporkan mengenai laporan

keuangan, dan mengkomunikasikan
segala sesuatunya seperti yang
diwajibkan ISA, sesuai dengan temuan
auditor.

19
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.20

Audit Definition

An audit is a systematic process of

objectively obtaining and evaluating
evidence regarding assertions about
economic actions and events to ascertain
the degree of correspondence between
these assertions and established criteria
and communicating the results to
interested users.
American Accounting Association

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.21

Definisi Pengauditan

Pengauditan adalah:
Suatu proses sistematis untuk mendapatkan dan
mengevaluasi bukti yang berhubungan dengan
asersi tentang tindakan-tindakan dan kejadian-
kejadian ekonomi secara obyektif, untuk
menentukan tingkat kesesuaian antara asersi
tersebut dengan kriteria yang telah ditetapkan
dan mengkomunikasikan hasilnya kepada pihak-
pihak yang berkepentingan.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.22

General Principles Governing an Audit of Financial

Statements

Scope of an audit - the audit procedures deemed

necessary to achieve the objective of the audit.
Certain inherent limitations in an audit affect the
auditors ability to detect material misstatements.
Test and sampling
Internal control
Audit evidence
Audit process permeated by judgment
Management is responsible for the financial
statements, accounting, and internal control.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.23

TYPES OF AUDIT
Audit of financial statements
Examine financial statements, determine if they give
a true and fair view or fairly present the financial
statements.
Operational Audit
A study of a specific unit of an organization for the
purpose of measuring its performance.
Compliance Audit
A review of an organizations procedures and
financial records performed to determine whether
the organization is following specific procedures,
rules, or regulations set out by some higher
authority.
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.24

MACAM-MACAM AUDIT

Audit Laporan Keuangan

Audit Operasional (audit kinerja,
management audit)
Audit Kepatuhan (Compliance Audit)

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[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.25

Types of Auditors

Internal auditors are employed by individual

companies to investigate and appraise the
effectiveness of company operations for
management.
Independent auditors are typically certified
either by a professional organization or
government agency.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.26

Certification of the Auditor

Certified Public Accountant

(CPA)
Chartered Accountant (CA)

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.27

Management Assertions and Audit

Objectives
The audit starts with the financial statements
prepared by the client and the claims or
assertions. that the client makes about
these numbers.
It is the auditor's job to validate management's
assertions. In order to do so, the auditor will
identify audit objectives, which can be
regarded as the auditor's counterpart of
management assertions.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.28

Asersi Manajemen

ISA315mendifinisikanasersisbb:
Asersirepresentasioleh
manajemen,secaraeksplisit(dalam
bentukpernyataan)maupunimplisit
(tersirat)yangterkandungdalam
laporankeuangan.Representasiini
digunakanolehauditoruntuk
memperhatikanberbagaisalahsaji
dalamlaporankeuanganyang
28
mungkinterjadi.
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.29

Kelompok Asersi

Asersiuntukjenistransaksi
Asersiuntuksaldoakun
Asersitentangpenyajiandan
pengungkapan

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[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.30

Asersi untuk jenis transaksi

Asersi Penjelasan
Occurrence Transaksi dan peristiwa yg sudah dicatat,
memang terjadi dan merupakan transaksi dan
peristiwa dari entitas ybs
Completeness Semua transaksi dan peristiwa yg seharusnya
dicatat, memang sudah dicatat
Accuracy Angka-angka, jumlah-jumlah, dan data lain yg
terkait dg transaksi dan peristiwa yg dicatat,
sudah dicatat dg akurat
Cut-off Transaksi dan peristiwa dicatat dalam periode
akuntansi yg benar
Classification Transaksi dan peristiwa dicatat dalam akun yg
benar

30
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.31

Asersi untuk Saldo Akun

Asersi Penjelasan
Existence Aset, kewajiban, dan ekuitas benar ada
Right and Obligations Entitas memiliki dan menguasai aset, dan
utang merupakan kewajiban entitas
Completeness Semua aset, kewajiban, dan ekuitas yg
seharusnya dicatat sudah dicatat
Valuation and allocation Aset, kewajiban, dan ekuitas dicantumkan
dalam laporan keuangan dlm jumlah yg benar,
dan semua penyesuaian untuk penilaian dan
alokasi telah dicatat dg benar

31
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.32

Asersi tentang Penyajian dan

Pengungkapan
Asersi Penjelasan
Occurrence, rights, and Transaksi, peristiwa, dan hal-hal lain yg sudah
obligation diungkapkan dlm laporan keuangan, memang
terjadi dan berkaitan dg entitas ybs
Completeness Semua pengungkapan yg seharusnya
dicantumkan, memang sudah dicantumkan dlm
laporan keuangan
Classification and Informasi keuangan disajikan dan dijelaskan dg
understandability tepat, dan pengungkapan dinyatakan dg jelas

Accuracy and valuation Informasi keuangan dan informasi lainnya

diungkapkan dg wajar dan dalam jumlah yg benar

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[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.33

Audit Process Model

Phase I - Client Acceptance

Phase II - Planning
Phase III - Testing and Evidence
Phase IV - Evaluation and
Judgment

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.34

Phase I Client Acceptance

Objective: The client acceptance phase of the audit

plan, Phase I, involves deciding whether to accept
a new client or continue with an existing one.
Procedures: (1) Evaluate the client's
background and reasons for the audit. (2)
Determine whether the auditor is able to
meet the ethical requirements regarding the
client. (3) Determine need for other
professionals. (4) Communicate with
predecessor auditor; (5) Prepare client
proposal. (6) Select staff to perform the
audit, and (7) Obtain an engagement letter.
[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.35

Phase II Planning the audit

Objective: Determine the amount and type of

evidence and review required to give the auditor
assurance that there is no material misstatement of
the financial statements.
Procedures (1) Perform audit procedures to
understand the entity and its environment,
including the entitys internal control; (2)
Assess the risks of material misstatements of
the financial statements. (3) Determine
materiality; and (4) Prepare the planning
memorandum and audit program, containing
the auditors response to the identified risks.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.36

Phase III Testing and Evidence

Objective Test for evidence supporting

internal controls and the fairness of the
financial statements.
Procedures: (1) Tests of controls; (2)
Substantive tests of transactions; (3)
Analytical procedures; (4) Tests of details of
balances. (5) Search for unrecorded liabilities.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.37

Phase IV, Evaluation and Reporting

Objective: Complete the audit procedures and

issue an opinion.
Procedures: (1) Evaluate governance
evidence; (2) Perform procedures to
identify subsequent events; (3) Review
financial statements and other report
material; (4) Perform wrap-up procedures;
(5) Prepare Matters of Attention for
Partners; (6) Report to the board of
directors; and (7) Prepare Audit report.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.38

International Public Accouting Firms

The Big Four:

Deloitte & Touche
PricewaterhouseCoopers
Ernst & Young
KPMG

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.39

International Public Accouting Firms

Audit Staff
Staff Accountants (or Junior Assistants then Senior)
Senior Accountants (or Supervisor)
Managers
Partners/Directors

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007
Slide 1.40

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] Pearson Education Limited 2007