Mengupas Konsep Audit! Apa itu Audit? | Buku Wajib Mahasiswa Akuntansi Series

Just Debri

12 Sept 202110:05

Summary

TLDRThis video script is a comprehensive guide to the concept of auditing, aimed at demystifying the process for fresh graduates and those unfamiliar with financial audits. The speaker, Dewi, introduces various types of audits and focuses on financial statement audits performed by public accountants. She explains the purpose of audits, which is to provide assurance that financial reports are free from material misstatements. The script outlines the auditing process, including planning, risk assessment, materiality determination, and execution of audit procedures such as substantive testing and control testing. It also touches on the importance of auditor independence and the significance of audit opinions in building stakeholder confidence in a company's financial statements.

Takeaways

📚 Auditing is a procedure to collect evidence to evaluate if a company operates according to internal and external standards.
🏢 Different types of audits exist, such as internal audit, financial statement audit, operational audit, and ISO audit.
💼 The focus of this script is on financial statement audits, typically conducted by public accounting firms.
🔍 The purpose of an audit is to provide assurance that a company's financial statements are free from material misstatements.
📈 Audits help in maintaining the credibility of financial statements, which is crucial for investors and other stakeholders.
📉 Companies may intentionally manipulate their financial statements to appear more attractive to investors, a practice known as 'window dressing'.
👀 The role of an auditor is to be skeptical and to verify all components of a company's financial statements.
🏛️ Public accounting firms with the proper authorization can provide audit services.
🛠️ The audit process includes planning, execution, and reporting, starting with ensuring the auditor's independence from the client.
🔑 Key audit procedures include substantive testing of transactions and controls testing to ensure the company has adequate controls to prevent material misstatements.
📊 After completing audit procedures, auditors form working papers, discuss findings with the client, and finally issue an opinion on the fairness of the financial statements.

Q & A

What is the main purpose of an audit?
-The main purpose of an audit is to provide assurance that a company's financial statements are free from material misstatements, whether caused by error or fraud.
What is the difference between accounting and auditing?
-Accounting focuses on the process of recording financial transactions and preparing financial statements according to accounting standards, while auditing involves evaluating whether those financial statements are accurate and comply with relevant standards.
What are the various types of audits mentioned in the script?
-The script mentions internal audit, financial statement audit, operational audit, and ISO audit as examples of different types of audits.
Why is it important for a company's financial statements to be audited?
-Auditing financial statements is important to provide confidence to both internal and external stakeholders that the company's financial health is accurately represented and complies with relevant standards.
What is meant by 'window dressing' in the context of financial reporting?
-Window dressing refers to the practice of manipulating financial statements to make a company appear more attractive to investors, often by delaying the recognition of expenses or inflating revenues.
What is the role of an auditor in the context of a financial audit?
-An auditor's role is to independently assess a company's financial statements to ensure they are free from material misstatements and comply with accounting standards.
Why is auditor independence crucial during the audit process?
-Auditor independence is crucial to ensure objectivity and integrity in the audit process, preventing conflicts of interest that could compromise the auditor's judgment.
What are some of the basic audit procedures performed by auditors?
-Basic audit procedures include substantive testing of transactions, confirmation of accounts receivable and payable with external parties, and testing of controls to ensure the company has adequate internal controls to prevent material misstatements.
What is the significance of the auditor's opinion in an audited financial statement?
-The auditor's opinion provides an assessment of whether the financial statements are presented fairly and in accordance with the applicable financial reporting framework.
Which companies are required to have their financial statements audited?
-Companies that are listed on the Indonesia Stock Exchange are required to have their financial statements audited annually.
What happens after an auditor completes the audit process?
-After completing the audit process, the auditor issues an audit report that includes their opinion on the fairness of the financial statements and any findings from the audit.

Outlines

00:00

📚 Introduction to Auditing

The script introduces the concept of auditing to the audience, explaining that it might be confusing for some, especially fresh graduates or those unfamiliar with the process. The speaker, Dewi, welcomes viewers back to her YouTube channel and mentions that this video will simplify the complex topic of auditing from the book 'Audit Kontemporer' by Theodorus Warna. The book is used in her advanced accounting studies and is comprehensive for explaining auditing. The video focuses on financial statement audits, which are typically conducted by public accounting firms. Auditing is described as a procedure to gather relevant evidence to evaluate if a company operates according to internal and external standards. The speaker explains that different types of audits exist, such as internal audits, financial statement audits, operational audits, and ISO audits. The purpose of an audit is to provide assurance that a company's financial statements are free from material misstatements.

05:01

🔍 The Role and Process of Auditors

This paragraph delves into the necessity of audits, explaining that they are crucial for providing confidence in a company's financial integrity. The script mentions that investors and other stakeholders may doubt the accuracy and honesty of a company's financial reports without external auditing. Auditors are portrayed as skeptical professionals who verify the components of a company's financial statements. The process of auditing is outlined, starting with the 'cleaning' phase, which includes ensuring auditor independence and assessing the company's risk and materiality. The 'execution' phase involves performing various audit procedures, such as substantive testing of transactions and controls. The script also touches on the importance of auditor skepticism and the need for auditors to be thorough in their examination of financial reports. The final phase, 'reporting', is mentioned as the step where auditors issue their opinion on the fairness of the company's financial statements after completing their work and findings.

Mindmap

Keywords

💡Audit

An audit is a systematic process of obtaining and evaluating evidence to determine if a company's operations and financial statements are in accordance with applicable standards. In the video, the speaker explains that audits ensure that a company's financial statements are free from material misstatements, which is crucial for building trust among investors and other stakeholders. The script mentions different types of audits, such as internal audits and financial statement audits.

💡Auditor

An auditor is a professional who performs audits to provide an independent assessment of a company's financial statements. The video script describes auditors as skeptical individuals who must verify the accuracy and fairness of financial reports. They are tasked with checking whether a company's financial statements comply with accounting standards and are free from material errors.

💡Financial Statements

Financial statements are formal records that show the financial activities and performance of a business. The video discusses how auditors check these statements to ensure they are correctly recorded and comply with financial accounting standards. They are a key component in the auditing process, as they are the main documents being evaluated for accuracy and compliance.

💡Material Misstatements

Material misstatements refer to errors in financial reporting that could significantly affect the perception of a company's financial health. The script mentions that the purpose of an audit is to provide assurance that the company's financial statements are free from material misstatements, which is vital for maintaining the integrity of financial reports.

💡Independence

Independence in the context of auditing means that auditors must be free from conflicts of interest to ensure unbiased assessments. The video script emphasizes the importance of auditors being independent from the clients they audit to maintain the integrity and objectivity of the audit process.

💡Accounting Standards

Accounting standards are the rules and guidelines that govern how financial information is recorded, presented, and reported. The video discusses how audits are conducted to ensure that companies' financial statements adhere to these standards, such as the Indonesian Financial Accounting Standards (PSAK).

💡Risk Assessment

Risk assessment in auditing involves identifying and evaluating the risks of material misstatements in the financial statements. The script mentions that auditors must evaluate the risks and determine the materiality of the company before planning the audit strategy. This step is crucial for focusing audit efforts on areas that pose the greatest risk.

💡Substantive Testing

Substantive testing is an audit procedure where auditors examine evidence to detect material misstatements in financial statement amounts. The video script describes how auditors perform substantive testing by checking transaction documents and confirming accounts receivable and payable to ensure the accuracy of financial data.

💡Test of Controls

A test of controls is an audit procedure where auditors evaluate the effectiveness of a company's internal controls to prevent or detect material misstatements. The video script mentions that auditors check documents and conduct interviews to assess whether the company has adequate controls in place.

💡Working Papers

Working papers are the documents prepared by auditors to record the procedures performed, the evidence obtained, and the conclusions reached during an audit. The video script refers to working papers as the records that auditors create while conducting the audit, which are then used to communicate audit findings to the client.

💡Audit Opinion

An audit opinion is the formal conclusion by the auditor about the fairness with which the financial statements are presented. The video script explains that after completing the audit procedures, auditors provide an opinion on whether the financial statements are in accordance with the applicable financial reporting framework.

Highlights

Introduction to the concept of auditing and its importance.

Explanation of the different types of audits such as internal audit, financial statement audit, operational audit, and ISO audit.

Focus on financial statement audits performed by public accounting firms.

Definition of audit as a procedure to collect evidence to evaluate if a company operates according to standards.

The role of auditors in providing assurance that a company's financial statements are free from material misstatements.

The necessity of audits for companies to gain confidence from internal and external parties.

The reason why companies might have inaccurate financial statements due to changing accounting standards or intentional misrepresentation.

The concept of window dressing and its impact on a company's financial appearance.

The role of auditors in checking the components of a company's financial statements.

The requirement for companies listed on the Indonesia Stock Exchange to have their financial statements audited annually.

The process of audit procedures, including planning, execution, and reporting.

The importance of auditor independence and the process of accepting audit assignments.

Risk assessment and materiality determination in the audit process.

Description of substantive testing procedures, including checking transaction evidence and external confirmations.

Explanation of the test of control procedure to ensure a company has adequate controls to prevent material misstatements.

The process of issuing audit opinions and publishing audited financial statements.

Personal experience of the speaker regarding the audit process and its challenges.

Encouragement for viewers to like and subscribe for more informative content.