NAME : NI LUH PUTU AMARA PRABASARI

NIM : 119211078
SUBJECT : FINANCIAL TECHNOLOGY
LECTURER : AGUS FREDY MARADONA, S.E., Ak., MSA., Ph.D.
DATE : THURDAY / APRIL 1, 2021
CLASS : ACCOUNTING IC

MID TERM EXAM

An audit report is a report that contains an audit opinion issued by an independent auditor
after examining the entity's financial statements and related reports including financial reports,
management accounts, management reports or other reports such as appropriate reports. Audits
are conducted for a variety of reasons, including for the purpose of obtaining monetary capital
and maintaining government compliance.

The reason why financial reports need to be audited by a public accountant is to provide
information about the company. To meet the needs of various parties for accounting information
regarding merchandise inventory, it is necessary to test the suitability of inventory accounting
practices with generally accepted accounting principles. The testing process is known as auditing
which is carried out by public accountants as an independent party.

The benefits of the audit are divided into three basic parts that enjoy the benefits of the
audit, namely:

 For Parties Being Audited

 Adding to the integrity of its financial statements so that these reports can be
trusted for the interests of parties outside the entity such as shareholders,
creditors, the government and others.
 Prevent and find fraud committed by the management of the company being
audited.
 Provide a more reliable basis for the preparation of tax returns submitted to the
government.
 Opening the door to the entry of outside sources of financing.
  Preparing for monetary errors and irregularities in financial records.
 For Other Members In The Business World
 Provide a more convincing basis for creditors or partners to make credit decisions.
 Provide a more convincing basis for the insurance company to settle claims for
insured losses.
 Provide investors and potential investors with a reliable basis for assessing
investment performance and management stewardship.
 Provide an objective basis for unions and audited parties to resolve disputes over
wages and benefits.
 Provide an independent basis for both buyers and sellers to determine the terms of
sale, purchase or company merger.
 Provide a better basis, convincing clients or clients to assess the profitability or
financial audit, management audit, and internal control system, 45 the profitability
of the company, its operational efficiency and its financial condition.
 For Government Agencies and People Who Are Engaged In The Field Of Law
 Provide additional independent clarity regarding the accuracy and assurance of
financial statements.
 Provide an independent basis for those engaged in the legal sector to manage
inheritance and entrusted assets, resolve problems in bankruptcy and insolvency
and determine the implementation of the partnership agreement accordingly.
 Play a decisive role in achieving the objectives of social security law.

An audit is needed for a company because an audit can help a company to survive or find
out and prevent fraud that occurs in a company so that fraud can be prevented or resolved
immediately. In addition, audits can be used to evaluate or improve the effectiveness of a
company. A financial report audit or more commonly called a financial audit is an examination
conducted to test the reliability of financial transactions, accounting records, and financial
reports.

This financial report audit is important because, first, there are certain individuals who
can carry out or create fictitious transactions that can harm the company. Second, financial
statement audits are needed because of differences in interests that can cause problems between
financial report makers (accounting) and stakeholders. Third, if the company wants to apply for
credit or investment, investors and creditors rely on valid financial reports to decide whether to
provide loans or investments. Fourth, besides that, with the publication of audited financial
reports, the increasing number of potential investors will be increasingly convinced of the quality
of financial reports and can be used as land for investment. Fifth, when stakeholders want to
check the financial statements to ensure they conform to actual information, stakeholders have
limited access due to time, accuracy, and energy constraints, so an auditor is needed.

The purpose of conducting a financial audit is to be able to find out information about the
inventory, the price set, the company's total assets are correct according to the actual events or
circumstances. Overall audit objectives can be divided into 3, namely:

 Appraisal of Control (Control Assessment) which deals with administrative control at all
stages of the company's operations which aims to determine whether existing controls are
effective in achieving company goals.
 Appraisal of Performance (Performance Assessment), namely the collection of
information which can then be used as the basis for management to improve company
performance.
 Assitance to Management (Assisting Management) where the results of the audit in the
operational inspection and compliance are recommendations for improvement for
management.

Auditor is someone's profession that focuses on auditing activities. Auditors usually work to
audit various reports relating to the finances of an institution, agency, or company. Audit of the
fairness of a financial report is the responsibility of an auditor, and the auditor must also check.
The various duties of each auditor according to The Auditing Practice Committee in 1980 are as
follows:

 Plan, control, and record every job.

 Understand the accounting system.
 Obtain audit evidence in order to be able to provide rational conclusions.
 Ensuring and evaluating internal control and conducting compliance tests.
 Review relevant financial statements.
Types of Auditors:

 Internal Auditor
Internal auditor is an auditor who works for an agency or company. Some of the
duties of the internal auditor are examining the company's internal financial documents,
but only in a fairly limited scope, and also work to improve the accuracy of the
company's financial data.
 Independent Auditor
An independent auditor is a member of a public accounting firm that works
externally to serve the public who is in need of audit services. The independent auditor
must not be influenced by outside parties or any party. CPA is the nickname for
independent auditors abroad.
 Government Auditor
Government auditor is an auditor who works to serve government-owned
institutions or companies. Some of the tasks that must be done for government auditors
include overseeing financial flows and practices in government institutions or agencies.
 Forensic Auditor
Forensic auditors are auditors who work in the field of specialization in the field
of financial crime. Their usual job is to tend to check documents related to various
criminal acts, such as money laundry and tracking the source of the money coming from.
 Tax Auditor
Tax Auditor is an auditor under the Directorate General of Taxes (DJP) of the
Ministry of Finance of the Republic of Indonesia. This auditor has a special duty to audit
certain taxpayers whether or not they have performed their obligations in accordance with
applicable laws and regulations.

Problems that usually arise when auditing:

1. The appointed internal auditor does not have the competence as an auditor and
does not even know how to manage an internal audit.
2. Internal auditors do not have power, so auditees often do not follow up on audit
findings
3. Internal auditors feel there has never been a reward from the company
4. Internal auditors have responsibility for their main work. As a result, auditors find
it difficult to keep the audit schedule, which causes the audit to be delayed from
schedule
5. Lack of management support with regard to internal audit activities
6. Unclear boundaries of audit findings (major or minor?) Which confuse the auditee
7. There is an assumption that the internal audit activity interferes with the main job
8. The audit findings were not followed up because there is no doubt if they are not
followed up.