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

Summary

This 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.