Audit means, in order to make sure whether the information management deliver is correct or sesuai

standar pelaporan keuangan.

Audit means, in order to make sure whether the information management delivers is correct or
accordance with financial reporting standards.

(Pengumpulan dan pengevaluasi bukti dari informasi, apakah informasi itu telah sesuai dengan kriteria
yang ditetapkan.) Collecting and evaluating evidence from information, whether the information meets
the established criteria.

Owners / principal / stockholders is who give money to the management

Management is the agents. Agent is somebody who work to the owner. They have responsibility to do
accountability report we called financial statement to the owner. The financial statement is talking
about what the management did during a year.

OWNERS /
Owners / principal / stockholders give
PRINCIPAL /
their money to the management
STOCKHOLDER
Owners could be everyone. They
might don’t understand the report. So
auditor comes to make sure that
there’s no earning management or
Management perform and do an fraud
MANAGEMENT /
accountability report called financial
AGENT
report

The elements of audit

1. Auditor; the one who audit the information. Information is prepared and submitted by the
management / auditee
2. Auditee
3. Information
4. Criteria

Information asimetri; means the owner got wrong information. At this point, the owners facing two
problem: adverse selection problem, moral hazard (Moral hazard dapat diartikan sebagai perilaku
seseorang saat risiko akibat tindakannya ditanggung oleh pihak lain)

Criteria for audit to deliver their opinion is PSAK

5 Audit opinion :

1. Unqualified opinion / Wajar tanpa pengecualian Unmodified

2. Unqualified with the explanation paragraph opinion
3. Qualified opinion / Wajar dengan pengecualian
Modified
4. Adverse opinion / tidak wajar
opinion
5. Disclaimer opinion / tidak memberikan pendapat