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THE AUDIT MARKET

Aisa Tri Agustini, SE., M.Sc., CPA
 LEARNING OBJECTIVES
1. Distinguish between different Theories of Audit Services
including agency theory

2. Understand drivers for audit regulation

3. Understand the role of public oversight

4. Distinguish between different audit firms

5. Identify some current developments in the audit market

6. Portray the series of industry codes of conduct and guidance

 Industrial Revolution led
the emergence of large
industrial companies

need external fund to

expand their business
So,
investor are provided with an independent and expert
opinion on the fairness of financial statement
 Theories on The Demand and
Supply of Audit Services

Policemen Theory Lending Credibility Theory Theory of Inspired Confidence

Agency Theory
Audit Regulation:
International Perspective
HAVE LISTING RULES THAT
REQUIRE ALL LISTED
COMPANIES TO HAVE THEIR
ANNUAL REPORT AUDITED.
 THE REQUIREMENTS / AUDIT
RULES
MAY VARY FROM STATE TO STATE
COMPANIES WITH MORE 50
EMPLOYEES, ASSET
NETHERLAND GREATER THAN EURO 3.1
S MILLION, NET SALES
GREATER THAN EURO 6.2
MILLION MUST BE
AUDITED
https://ww.google.com/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahU
ASEAN AU
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Tfi7nyINlxyo&ust=1521169560849730

INDONESIA BECOME A MEMBE

Keputusan Presiden Nomor 38 t
tanggal 12 September 20
tentang Keanggotaan Pemerintah I
International Forum of Indepen
IFIAR https://www.google.com/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwi0lZSHru3ZAh
XJsY8KHfuzBtIQjRwIBg&url=https%3A%2F%2Ftwitter.com%2Ffrcnews
%2Fstatus ACTIVITIES
%2F723505839085113344&psig=AOvVaw0rRO6FX2u2NVNRPahgli3k&ust=
1521169979815469

1. To share knowledge of the audit market environment

and practical experience of independent audit
regulatory activity

2. To Promote collaboration in regulatory activity

3. To Provide a focus for contracts with other

international organisations which have an interest in
audit quality
 IFIAR https://www.google.com/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwi0lZSHru3ZAh
XJsY8KHfuzBtIQjRwIBg&url=https%3A%2F%2Ftwitter.com%2Ffrcnews
%2Fstatus CORE PRINCIPLES
%2F723505839085113344&psig=AOvVaw0rRO6FX2u2NVNRPahgli3k&ust=
1521169979815469

1. Comprehensive and well defined accounting and

auditing principles and standards that are generally
accepted

2. Legal requirements for the preparation and

publication of financial statements according to those
principles and standards

3. An enforcement system for preparers of financial

statements to ensure compliance with accounting
standards
 AUDIT FIRMS
THE NON-BIG
FOUR FIRMS

THE BIG FOUR

FIRMS
DELOITTE
ERNST & YOUNG
KPMG
PRICEWATERHOUSECOOPERS
 LEGAL LIABILITY
LEGAL LIABILITY
LIABILITY UNDER COMMON TO CLIENTS
LAW LEGAL LIABILITIES
TO THIRD PARTIES
CIVIL LIABILITY UNDER
STATUTORY LAW

CRIMINAL LIABILITY UNDER

STATUTORY LAW

LIABILITIES AS MEMBERS OF
PROFESSIONAL ACCOUNTING
ORGANISATIONS
Aturan dalam Pelanggaran
Administratif Audit
PMK No 17/PMK.01/2008, Pasal
62, 63, 64, dan 65

Sanksi Sanksi
Peringatan Pencabutan
Izin

Sanksi
Pembekuan
Izin
 Tanggung Jawab Auditor
Mendeteksi Melaporkan Dewan Direksi
Kecurangan Kecurangan Manajemen
Komite Audit

Mendeteksi mendesak manajemen untuk merevisi

Pelanggaran Hukum
Klien menginformasikan kepada pihak ketiga

Melaporkan
Pelanggaran Hukum
Klien
Business Failure Audit Failure
“Education is the“Type
passport
a quote
to the
here.”
future, for tomorrow
belongs to those who prepare for it today”

–Johnny
–Malcolm
Appleseed
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