chapter 7 – audit evidence · pdf filechapter 7 ©2008 prentice hall business...
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©2008 Prentice Hall Business Publishing, ©2008 Prentice Hall Business Publishing, Auditing 12/e,Auditing 12/e, Arens/Beasley/Elder Arens/Beasley/Elder 7 - 1
TES TRANSAKSITEST OF RECORDED TRANSACTIONTEST OF RECORDED TRANSACTION
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Audit Evidence
Chapter 7
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Learning Objective 1
Contrast audit evidence withevidence used by otherprofessions.
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Standar Pekerjaan Lapangan Ketiga IAPI (2011:326.1)
Bukti audit kompeten yang cukup harus diperoleh melalui inspeksi, pengamatam, permintaan keterangan dan konfirmasi sebagai dasar yang memadai untuk menyatakan pendapat atas Laporan Keuangan Auditan
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Nature of Evidence
The use of evidence is not unique to auditors
Evidence is also used by scientists, lawyers,and historians
Audit Evidence vs Legal Evidence
• Ukuran Keabsahan (Validity)• Relevansi (Relevance)• Ketepatan Waktu (Timeliness)• Keberadaan Bukti Pendukung Lain (Supporting Other evidence)
Kompetensi Kompetensi BuktiBukti
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Learning Objective 2
Identify the four audit evidencedecisions that are needed tocreate an audit program.
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Audit Evidence Decisions
1. Which audit procedures to use
2. What sample size to select for a given procedure
3. Which items to select from the population
4. When to perform the procedures (timing)
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Audit Program
It includes a list of the audit proceduresthe auditor considers necessary.
Most auditors use computers to facilitatethe preparation of audit programs.
Sample sizes Items to select Timing of the tests
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Learning Objective 3
Specify the characteristics thatdetermine the persuasivenessof evidence.
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Persuasiveness of Evidence
Appropriateness
Sufficiency
Two determinants:
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Six Characteristics of Reliable Evidence1. Independence of provider
2. Effectiveness of client’sinternal controls
3. Auditor’s direct knowledge
(Independensi dari Provider)(Independensi dari Provider)
(Efektifitas IC Klien)(Efektifitas IC Klien)
(Pengetahuan Langsung Auditor)(Pengetahuan Langsung Auditor)
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Six Characteristics of Reliable Evidence4. Qualification of individuals
providing the information
5. Degree of objectivity
6. Timeliness
(Kualifikasi Individual dari (Kualifikasi Individual dari Penyedia Informasi)Penyedia Informasi)
(Derajat Obyektifitas)(Derajat Obyektifitas)
(Ketepatan Waktu)(Ketepatan Waktu)
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Relationships Among Audit Evidence and Persuasiveness
Audit Evidence DecisionsQualities Affecting Persuasivenessof Evidence
Audit procedures and timing Appropriateness Relevance Reliability Independence of provider Effectiveness of internal controls Auditor's direct knowledge Qualifications of provider Objectivity of evidence Timeliness When procedures are performed Portion of period being audited
Sample size and items to select Sufficiency Adequate sample size Selection of proper population items
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Persuasiveness and CostIn making decisions about evidencefor a given audit, both persuasivenessand cost must be considered.
The auditor’s goal is to obtain asufficient amount of appropriateevidence at the lowest total cost.
(Keputusan Audit atas Bukti (Keputusan Audit atas Bukti Audit, Persuasiveness & Cost )Audit, Persuasiveness & Cost )
(Tujuan Auditor mendapatkan jumlah yg Cukup, (Tujuan Auditor mendapatkan jumlah yg Cukup, atas kelayakan Bukti dengan atas kelayakan Bukti dengan Biaya TerendahBiaya Terendah))
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Learning Objective 4
Identify and apply the eight typesof evidence used in auditing.
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Types of Audit Evidence
1. Physical examination2. Confirmation3. Documentation4. Analytical procedures5. Inquiries of the client6. Recalculation7. Reperformance8. Observation
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Types of Audit Evidence (Soekrisno Agoes)
1. Physical Evidence :Segala sesuatu yang bisa 1. Physical Evidence :Segala sesuatu yang bisa dihitung, dipelihara, diobservasi atau diinspeksi dihitung, dipelihara, diobservasi atau diinspeksi --- > mendukung tujuan eksistensi & keberadaan --- > mendukung tujuan eksistensi & keberadaan mis: bukti fisik kas opname, bukti fisik stock mis: bukti fisik kas opname, bukti fisik stock opname dllopname dll
2. Confirmation Evidence :Bukti yang diperoleh 2. Confirmation Evidence :Bukti yang diperoleh mengenai eksistensi/ penilaian langsung dari mengenai eksistensi/ penilaian langsung dari pihak ketiga. Mis: jawaban Konfirmasi Piutang, pihak ketiga. Mis: jawaban Konfirmasi Piutang, Utang dllUtang dll
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Types of Audit Evidence (Soekrisno Agoes)
3. Documentary Evidence :Catatan akuntansi 3. Documentary Evidence :Catatan akuntansi dan seluruh dokumen pendukung. Terkait dengan dan seluruh dokumen pendukung. Terkait dengan ASERSI manajemen ‘Completeness & Existence’ ASERSI manajemen ‘Completeness & Existence’ AUDIT TRAIL – Tracking & Vouching (Bukti – AUDIT TRAIL – Tracking & Vouching (Bukti – Journal – Buku Besar – Journal – Bukti )Mis: Journal – Buku Besar – Journal – Bukti )Mis: Copy faktur, Journal Voucher, General Ledger Copy faktur, Journal Voucher, General Ledger dan Sub Ledgerdan Sub Ledger
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Types of Audit Evidence (Soekrisno Agoes)
4. Mathematical Evidence: Perhitungan, 4. Mathematical Evidence: Perhitungan, Perhitungan kembali, rekonsiliasi. Mis: Footing, Perhitungan kembali, rekonsiliasi. Mis: Footing, Cross footing & extension atas rekon bank, kas, Cross footing & extension atas rekon bank, kas, piutang, utang, piutang, utang,
5. Analytical Evidence: bukti yg diperoleh 5. Analytical Evidence: bukti yg diperoleh melalui penelaahan analitis thd informasi melalui penelaahan analitis thd informasi keuangan klien – dilakukan sebelum substantive keuangan klien – dilakukan sebelum substantive test dan pada akhir audit lapangantest dan pada akhir audit lapangan
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Types of Audit Evidence (Soekrisno Agoes)
Prosedur analitis dilakukan dg cara:Prosedur analitis dilakukan dg cara: Trend (Horizontal) Analysis : membandingkan Trend (Horizontal) Analysis : membandingkan angka LK periode berjalan dg periode angka LK periode berjalan dg periode sebelumnya, selidiki signifikansi kenaikan/ sebelumnya, selidiki signifikansi kenaikan/ penurunan jumlah rupiah/ prosentasepenurunan jumlah rupiah/ prosentase Common Size (Vertical) Analysis Common Size (Vertical) Analysis Ratio Analysis a.l Likuiditas, Profitabilitas, Ratio Analysis a.l Likuiditas, Profitabilitas, SolvabilitasSolvabilitas
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Types of Audit Evidence (Soekrisno Agoes)
4. Hersay (oral) evidence: Bukti dalam bentuk 4. Hersay (oral) evidence: Bukti dalam bentuk jawaban lisan dari klien atas pertanyaan-jawaban lisan dari klien atas pertanyaan-pertanyaan yang diajukan auditor. pertanyaan yang diajukan auditor.
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RelationshipsAuditing
standards
Evidenceaccumulation
Types ofevidence
Auditprocedures
Qualificationsand conduct
Sample sizeand itemsto select Timing
of tests
ReportingPhysical examination
ConfirmationDocumentation
Analytical proceduresInquiries of the client
RecalculationReperformance
Observation
Broad guidelinesconcerning auditorqualifications andconduct, evidence
accumulation,and reporting
Broad categories ofevidence available
for the auditor’saccumulation
Specific instructionsfor the accumulationof types of evidence
FOURAUDIT
EVIDENCEDECISIONS
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Physical Examination
It is the inspection or count by theIt is the inspection or count by theauditor of a auditor of a tangible assettangible asset..
This type of evidence is most oftenThis type of evidence is most oftenassociated with inventory and cash.associated with inventory and cash.
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Confirmation
Information Source
AssetsAssets
Cash in bankAccounts receivableNotes receivableOwned inventory out on consignmentInventory held in public warehousesCash surrender value of life insurance
BankCustomerMakerConsigneePublic warehouseInsurance company
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Confirmation
Information Source
LiabilitiesLiabilities
Accounts payableNotes payableAdvances from customersMortgages payableBonds payable
CreditorLenderCustomerMortgagorBondholder
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Confirmation
Information Source
Owners’ EquityOwners’ Equity
Shares outstanding Registrar andtransfer agent
Other InformationOther Information
Insurance coverageContingent liabilities
Bond indenture agreementsCollateral held by creditors
Insurance companyBank, lender, and client’s legal counselBond holderCreditor
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Documentation
It is the auditor’s inspection of theclient’s documents and records.
Internaldocuments
Externaldocuments
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Analytical Procedures
Understand the client’s industry and business
Assess the entity’s ability to continue as agoing concern
Indicate the presence of possible misstatementsin the financial statements
Reduce detailed audit tests
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Inquiries of the Client
It is the obtaining of written or oral information from the client in response to questions from the auditor.
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Recalculation
It involves rechecking a sample of calculationsmade by the client.
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Reperformance
It is the auditor’s independent tests of clientaccounting procedures or controls thatwere originally done.
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Observation
It is the use of the senses to assess client activities.
The auditor may tour the plant to obtain a generalimpression of the client’s facilities.
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Appropriateness of Types of Evidence Type of evidence Independence of provider Effectiveness of client’s internal controls Auditor’s direct knowledge Qualifications of provider Objectivity of evidence
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Terms and Types of Evidence
Terms Type of Evidence
ExamineScanReadComputeRecomputeFootTraceCompareCountObserveInquireVouch
DocumentationAnalytical proceduresDocumentationAnalytical proceduresRecalculationRecalculationDocumentation/ReperformanceDocumentationPhysical examinationObservationInquiries of clientDocumentation
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Substantive Test & Compliance Test
Compliance Test: Compliance Test: Tes terhadap bukti-bukti Tes terhadap bukti-bukti pembukuan yang mendukung transaksi yang pembukuan yang mendukung transaksi yang dicatat perusahaan untuk mengetahui apakah dicatat perusahaan untuk mengetahui apakah setiap transaksi yang terjadi sudah diproses dan setiap transaksi yang terjadi sudah diproses dan dicatat sesuai dengan sistem dan prosedur yang dicatat sesuai dengan sistem dan prosedur yang ditetapkan Manajemen.ditetapkan Manajemen.Jika terjadi penyimpangan, material/ tidak Jika terjadi penyimpangan, material/ tidak material auditor hrs memperhitungkan pengaruh material auditor hrs memperhitungkan pengaruh penyimpangan tersebut terhadap efektivitas penyimpangan tersebut terhadap efektivitas Pengendalian InternalPengendalian Internal
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Compliance Test
Compliance test Compliance test aspek kelemahan/ aspek kelemahan/ penyimpangan yang muncul diatasi dengan penyimpangan yang muncul diatasi dengan Compensating ControlCompensating Control
Compliance test consideration items :Compliance test consideration items :b.b.The Completeness of supporting documentsThe Completeness of supporting documentsc.c.Mathematical analysis: footing, crossfooting, Mathematical analysis: footing, crossfooting, extensionextensiond.d.Legalisation from the Authorized PersonLegalisation from the Authorized Persone.e.The Account verificationThe Account verificationf.f.Posting Journals to Ledger verification Posting Journals to Ledger verification
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Substantive Test
Substantive test Substantive test : Tes terhada kewajaran : Tes terhada kewajaran saldo-saldo dalam Laporan Keuangansaldo-saldo dalam Laporan Keuangan
Prosedur Substantive Test a.l:Prosedur Substantive Test a.l:b.b.Inventarisasi Aset TetapInventarisasi Aset Tetapc.c.Observasi atas Stock OpnameObservasi atas Stock Opnamed.d.Konfirmasi Piutang, utang dan bankKonfirmasi Piutang, utang dan banke.e.Kas Opname Kas Opname f.f.Pemeriksaan rekonsiliasi bank dllPemeriksaan rekonsiliasi bank dll
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Cara Pemilihan Sample
Sampling Audit Sampling Audit : Penerapan prosedur audit : Penerapan prosedur audit thd unsur” suatu saldoatau kelompok transaksi thd unsur” suatu saldoatau kelompok transaksi yang kurang dari 100% dg tujuan utk meneliti yang kurang dari 100% dg tujuan utk meneliti karakteristik dari akun atau kelompok transaksi karakteristik dari akun atau kelompok transaksi tssb. tssb.
Metode Sampling:Metode Sampling:• Random/ Judgement SamplingRandom/ Judgement Sampling•Block SamplingBlock Sampling•Statistical SamplingStatistical Sampling
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Learning Objective 5
Understand the purposes ofaudit documentation.
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Audit Documentation
Audit documentation is the principal recordof auditing procedures applied, evidenceobtained, and conclusions reached bythe auditor in the engagement.
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Audit Documentation
Purposes of audit documentation
Ownership of audit files
Confidentiality of audit files
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Sarbanes-Oxley Act
The Sarbanes-Oxley Act requires auditors ofpublic companies to prepare and maintainaudit working papers for a period of noless than seven years.
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Learning Objective 6
Prepare organized auditdocumentation.
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Audit File Contents and Organization
Robinson AssociatesRobinson AssociatesTrial BalanceTrial Balance
12/31/0712/31/07
CashCash $165,237$165,237Accounts ReceivableAccounts Receivable 275,050 275,050Prepaid InsurancePrepaid Insurance 37,795 37,795Interest ReceivableInterest Receivable 20,493 20,493
Financial Statementsand Audit Report
Financial Statementsand Audit Report
Financial Statementsand Audit Report
Working TrialBalance
Financial Statementsand Audit Report
Adjusting JournalEntries
Financial Statementsand Audit Report
ContingentLiabilities
Financial Statementsand Audit Report
Operations
Financial Statementsand Audit Report
Liabilitiesand Equity
Financial Statementsand Audit Report
Assets
Financial Statementsand Audit Report
AnalyticalProcedures
Financial Statementsand Audit Report
Tests of Controls andSubstantive TOT
Financial Statementsand Audit Report
InternalControl
Financial Statementsand Audit Report
GeneralInformation
Financial Statementsand Audit Report
AuditPrograms
Financial Statementsand Audit ReportPermanent Files
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Permanent Files
These files are intended to containdata of a historical or continuingnature pertinent to the current audit.
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Current Files
Audit program
General information
Working trial balance
Adjusting and reclassification entries
Supporting schedules
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Relationship of Audit Documentationto Financial Statements
FINANCIAL STATEMENTSCash 122Acc.
WORKING TRIAL BALANCE Prelim. AJE’s Final
Cash 212 (90) 122
AJE’sExpense 90
Cash 90
LEAD SCHEDULE–CASH A-1 Per G/L AJE’s Final
Petty Cash A-2 5 5Cash in Bank:
General A-3 186 (90) 96Payroll A-4 21 21
212 (90) 122
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Relationship of Audit Documentationto Financial Statements
A-3/1Confirmation
A-3/2O/S Check List
A-4/2O/S Check List
A-4/1Confirmation
A-2Cash Count Sheet
A-3Bank Reconciliation
A-4Bank Reconciliation
LEAD SCHEDULE–CASH A-1 Per G/L AJE’s Final
Petty Cash A-2 5 5Cash in Bank:
General A-3 186 (90) 96Payroll A-4 21 21
212 (90) 122
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Types of Supporting Schedules Analysis
Trial balance or list
Reconciliation of amounts
Tests of reasonableness
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Types of Supporting Schedules Summary of procedures
Examination of supporting documents
Informational
Outside documentation
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Preparation of Audit Documentation
Each audit file should be properly identified
Documentation should be indexed andcross-referenced
Completed documentation must clearlyindicate the audit work performed
It should include sufficient information
It should plainly state the conclusions reached
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Learning Objective 7
Describe how e-commerceaffects audit evidence andaudit documentation.
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Effect of E-commerce
Audit evidence is increasingly in electronic form
Auditors must evaluate how electronic informationaffects their ability to gather evidence
Auditors use computers to read and examineevidence
Software programs are typically Windows-based
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End of Chapter 7