SA 700 - Perumusan Suatu Opini & Pelaporan atas Laporan Keuangan

Summary

This video provides an in-depth look at SA 700, focusing on how auditors formulate opinions and report on financial statements. It outlines the core goals of SA 700, which are to help auditors express clear, well-supported opinions based on audit evidence and to ensure financial statements comply with relevant reporting frameworks. Key considerations include evaluating the sufficiency of audit evidence, material misstatements, and the adequacy of financial disclosures. The video also explains the structure of an auditor's report, detailing the responsibilities of both management and auditors, and how the final opinion is presented to stakeholders.

Takeaways

• 😀 The SA 700 standard focuses on formulating an opinion and reporting on financial statements based on audit evidence.
• 😀 The audit process consists of three main phases: planning, fieldwork, and reporting.
• 😀 Prior videos discussed audit planning (SA 2), risk assessment (SA 315), and the auditor’s response to risk (SA 330), as well as evidence gathering (SA 500).
• 😀 The auditor must evaluate the evidence collected to formulate an opinion and ensure it is sufficient and appropriate for forming conclusions.
• 😀 The auditor must also assess whether the financial statements meet the applicable financial reporting framework, such as IFRS or government accounting standards.
• 😀 Key considerations when forming an opinion include evaluating material misstatements, both individually and collectively, and ensuring they are corrected.
• 😀 The auditor must assess if the financial statements present relevant, reliable, comparable, and understandable information.
• 😀 The report must address whether the financial statements comply with the applicable financial reporting framework and accounting policies.
• 😀 The auditor must evaluate whether accounting estimates made by management are reasonable and consistent with the applicable reporting framework.
• 😀 The final audit report must clearly state the auditor’s opinion, and if there are any modifications, the report should reflect those according to SA 705.

Q & A

What is the main objective of SA 700?

The main objective of SA 700 is to formulate an opinion on financial statements based on an evaluation of audit evidence and to express a clear, written opinion on whether the financial statements present a true and fair view.

What are the three key phases of an audit mentioned in the script?

The three key phases of an audit are: planning, fieldwork, and reporting.

What is the role of the auditor in the SA 330 phase?

In the SA 330 phase, the auditor's role is to assess risks and apply appropriate responses to ensure that sufficient and appropriate audit evidence is collected.

What are the key considerations for the auditor when forming an opinion on the financial statements?

The key considerations include ensuring sufficient and appropriate audit evidence is obtained, evaluating material misstatements (both individual and collective), and verifying that the financial statements comply with the relevant reporting framework.

What are the possible outcomes if the auditor finds material misstatements?

If material misstatements are found, the auditor may modify their opinion, and this is addressed in SA 705. The auditor would issue a modified opinion if the financial statements cannot be considered free from material misstatements.

What is the significance of the audit evidence in formulating an opinion?

Audit evidence is crucial for formulating an opinion because it ensures that the auditor can support their conclusions. The evidence must be sufficient and appropriate to form a reasonable and accurate opinion on the financial statements.

What are the reporting frameworks mentioned in the script that auditors must follow?

Auditors must follow the applicable reporting frameworks such as the Indonesian Financial Accounting Standards (SAK) and government accounting standards issued by the Ministry of Finance (KSAP) when conducting audits.

How does SA 700 guide the structure of an audit report?

SA 700 specifies that the audit report should include an introduction, a description of the auditor's responsibilities, a statement of the auditor's opinion, and any other relevant reporting information such as the auditor's signature and the report's date.

What are the two primary responsibilities of management in relation to financial statements?

Management is responsible for preparing financial statements in accordance with the relevant reporting framework and for maintaining effective internal controls to ensure the fairness of the financial reporting.

What should the auditor's opinion reflect in relation to the financial statements?

The auditor's opinion should reflect whether the financial statements present a true and fair view, are free from material misstatements, and comply with the applicable accounting framework.