Group 5:

Mutiara Izzati Diva 1910533027

Miftahul Jannah 1910533028
Nadhratul Hikmah 191053031
INTERNAL AUDIT

1. Shaquila Dania (1910532002): In internal audit performance standard no. 2310, how can
we say if the information that we are going to deliver has achieved the best attainable
information through the use of appropriate engagement techniques standard?

Answer by: Mutiara Izzati Diva

If internal auditors have applied the standard for the auditory of internal auditing well, the
information presented has already reached its best, but internal control cannot guarantee
the financial statements absolutely correct, since internal control cannot detect collusion and
liquidation done by the organization's personnel or even by the management itself. For this
the role of an independent audit performed by external auditors. Independent auditors
report will present the actual condition of the financial report.

Additional from Lecture:

There is no standard to support them. All the techniques that we use, can achive the internal
audit activities
The illustration:
If we have a team, we have a leader we go on to engagement, and the team has the
supervisor. The team have to record the internal audit activities into internal audit
committee.

2. Aisyah Mahmud (1910533016):

Articles 2100 to 2130 explain the nature of the internal audit activity, when can the
credibility and value of internal audit be said to be realized?

Answer by: Mutiara Izzati Diva

• We think that when auditors are proactive and their evaluations offer new perspectives
and consider future impacts

Additional from the Lecture:

During the opportunities, there is no specific time.

3. Gina Maria Harun (1910533023)

Thanks for the presentation group 5, I'm Gina Maria Harun would like to ask you a
question. On the standard paragraph 1300—Quality Assurance and Improvement Program.
You said that, the CAE must develop and maintain a quality assurance and improvement
program that covers all aspects of internal audit activity and continuously monitors its
effectiveness. What are quality assurance and improvement program that CAE must
develop and maintain?
Answer by: Miftahul Jannah
The CAE must develop and maintain a Quality Assurance and Improvement Program that
covers all of the work performed by the internal audit activity. The Quality Assurance and
Improvement Program enables an internal audit activity to be evaluated as to how
effectively it applies the Code of Ethics and conforms with the Standards. The program also
assesses the efficiency and effectiveness of the internal audit activity and identifies
opportunities for improvement.

Additional answer from Maam Verni:

The CAE must develop for every activities that performed in the internal audit. The CAE can
assess the quality assurance and improvement program by making the good program then
monitoring the program and evaluate it.
4. Muthia Putri Hefra (1910533011)
In slide 23, what do you think the most important principle of the IIA? And what are the
concequences if the auditor not demonstrated the principles?
Answer by: Miftahul Jannah
As stated in the slide number 23, the code of ethics is divided from high level principles.
Internal auditors must follow the rules of conduct related to integrity in the Code of Ethics to
observe the law and not be party to any illegal activities or to any acts that would be
discreditable to the profession. If integrity is not demonstrated, then the internal audit
activity loses the trust placed in it and consequently its credibility to provide independent
and objective assurance and advice. And this will affect the second, third and fourth
principles because the integrity is inextricably linked to another principles.

Additional answer from Maam Verni:

So, the conclution, all of the standard is important. And there will be a consequences for
violating the principles. The internal audit activity loses the trust and credibility to provide
independent and objective assurance and advice.

5. Wilda Anabia Prasasti 1910531026

In slide 15 If the internal auditor has carried out its duties to audit the annual audit plan
and has provided findings and recommendations to management, but it turns out that
management ignores them as a result there is no clear follow-up, then what should
internal audit do if it refers on the standards of the internal audit profession?

Answer by: Nadhratul Hikmah

If the internal auditors have done their job well, namely providing recommendations and
findings to management, but if management ignores them and there is no follow-up, it will
not be in line with the continuity of the audit process. So in our opinion, internal auditors
should continue to communicate with management on a regular basis so that the audit
process is effective again, then the internal auditors can hold meetings with management to
discuss the recommendations and findings in order to get good feedback during the audit
process, then the internal auditors must also carry out control and monitoring of internal
control activities and conducting risk analysis for any findings and recommendations given.

Additional answer from Maam Verni:

In the case of management ignoring the recommendations and findings of internal audit,
there is no standard that regulates what internal auditors should do. The standard currently
being discussed regulates internal audit, not management. However, if there is a case as
mentioned, then it is a challenge for the auditor to be able to carry out the audit process
effectively, maybe he can tell top level management about this incident to get good feedback
during the audit process

6. Olivia Reynata Putri 1910533037

How can the Internal Auditor perform “independent and objective assurance” even though
the company's employees have been regulated in IPPF 1100 regarding Independence and
Objectivity?

Answer by Nadhratul Hikmah:

Independence is a condition of being free from situations that can threaten the ability of the
internal auditor's activities to be able to carry out their responsibilities impartially. To
achieve the level of independence required to carry out the responsibilities of the internal
audit activity, the chief audit executive must have direct and unrestricted access to senior
management and the board. This can be achieved through dual reporting relationships to
senior management and board. Threats to independence must be managed from the
individual internal, engagement, functional, and organizational levels of auditors. Objectivity
is an impartial mental attitude that allows internal auditors to carry out their duties in such a
way that they have confidence in the results of their work and without compromise in quality.
Objectivity requires internal auditors not to base their judgment on other parties regarding
audit matters. Threats to objectivity must be managed from the individual internal auditor,
engagement, functional, and organizational levels.

Additional answer from Maam Verni:

The internal audit activity must be independent, and internal auditors must be objective in
performing their work. Subsections under this discuss the importance of both individual and
organizational objectivity as well as the need to disclose any impairment to internal audit
independence or objectivity.