CASE STUDY: AUDIT OF EXPENSES

Requirements
1. Read the following scenario, and determine what type of procedure need to be
performed on each accounts except for sales.

2. You have 30 minutes to come up with an answer in your small group.

3. What is your conclusion for the accounts? Be prepared to justify your decision to the
group. Analytical Procedures/Subtantif (ekspektasi - realita) & Test of Detail/Vouching (lebih detail untuk mengecek-nya)

Scenario

PT Pintar Bersama (PB) is an Indonesian manufacture company located and mainly

operate in DKI Jakarta, resulting to the use of IDR as their transaction and reporting
currency. The Company has running and operate for several years with detailed
information on some of their profit and loss statement as follows:

Accounts 31 December 2021 31 December 2020

(In thousand IDR) (In thousand IDR)
Operating Expenses
Sales 5.120.324 4.023.654
Salaries Expenses Subtantif (324.293) (284.293)
Utilities Expenses - Electricity Vouching (70.259) (78.293)
Marketing Expenses Subtantif (232.123) (144.856)
Professional Expenses Vouching (39.028) (11.829)
Non-Operating Expenses
Interest Expenses Subtantif/TOD (108.000) (132.000)
Gain/Loss on Foreign Currency Subtantif (74.239) (32.123)

In regards to the accounts above, below are the detail information auditor could receive
during the period:
informasi :
General Information 1. intern&Extern perush.
2. spesific account

a. The senior has performed the materiality calculation with result as

follows:

Materiality 102.400.000 tidak bisa 100% tidak akan salah, pasti ada something yg terjadi scr material
Performance Materiality 81.920.000
Threshold 5.120.000

b. At the end of 2020, it is being approved by the Jakarta government that

starting April 2021 there would be an increase of 4.6% of Upah Minimum
Reginal (UMP).

c. The average movement on USD/IDR at the end year 2021 and 2020 are
as below:
 2021 : Rp 14.222/USD

2020 : Rp 14.786/USD

Specific Accounts Information

a. Cash in Bank
The Company has foreign bank accounts denominated in USD with
balance as of December 31, 2021 and 2020 are USD 1.823.000 and
USD 2.098.000, respectively.

b. Bank Loan
On August 2019, the Company has entered in to a 3 years Bank Loan
agreement with information has been summarized by another staff as
follows:
No. 19-8312-J LN Agreement (August 1, 2019)

Type of Facility Long-Term Loan Facility

Purpose Working Capital (Operation Expansion)
Maximum Principal Amount Rp 2.200.000.000
Interest 6% per year
Facility Period 3 year
Maturity Date July 31, 2021

Principal Repayment Schedule Period Amount

01-Aug-19 -
01-Feb-20 -
01-Aug-20 -
01-Feb-21 300,000,000
01-Aug-21 300,000,000
01-Feb-22 800,000,000
01-Aug-22 800,000,000

c. Professional Expenses berdasarkan legal/100% menggunakan teori

The senior has analyze the detail professional expenses and identify that
all the transaction are related to the legal expense thus has requesting
and received supporting document as presented in folder “Professional
Expenses”.

d. Marketing Expenses
As a manufacturing company, usually PT Pintar Bersama would rely on
the work of it’s marketing division to be able to sell all of it’s inventory. To
boost up the morale of the marketing and sales staff, the Company has
incentive/commission scheme as follows:

Sales Per Staff x applicable rate

ambil selisih atas kenaikan -> (4,3%-3,5%)/3,5% = 22,50%
In the current period the Company has announced
4,3%
that the commission
3,5%
rate would go up from 3~4 percent to 3.8~4.8%, depending on sales
performance of the staff. hanya pakai rate tahun ini saja
(antara akun yg lain)
e. Electricity Expenses
Since the payment of electricity expenses is performed one a month after
receiving the invoice from PLN, thus your senior has asked client to
provide all the invoice for electricity used during January – December as
presented in folder “Electricity Bill”.