PENGAUDITAN 1

Chapter 8 :
Section 404 : Audits of Internal
Control and Control Risk

Present By :
M.Riduan Abdillah SE,M.Si, Akt, CA
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 1
 Sistem Pengendalian Internal

“ terdiri atas kebijakan dan prosedur

Yang dirancang untuk memberikan
Manajemen kepastian yang layak
Bahwa perusahaan telah mencapai
Tujuan dan sasarannya “

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 Problems in Auditing........

Cowboy

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 The Cowboy after OSHA(Occupational
& Safety Health Act )

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 Internal Control Objectives :
The Three Primary Objectives Of
Effective Internal Control.

1. Reliability of financial reporting

2. Efficiency and effectiveness of operations

3. Compliance with laws and regulations

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 5

 Process for Understanding Internal
Control and Assessing Control Risk
Obtain an
understanding Design, perform,
of and evaluate
Phase 1 internal control: Phase 3 tests
design and of controls
operation

Decide planned
Assess
detection risk
Phase 2 control Phase 4 and substantive
risk
tests

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 6

 Scoping – The COSO Framework : Five
Components of Internal Control
Monitoring
▪ Assessment of a control
system’s performance over
time
▪ Combination of ongoing and
separate evaluation
▪ Management and
supervisory activities
▪ Internal audit activities
Information &
Communication
▪ Pertinent information
identified, captured and
communicated in a timely
manner
▪ Access to internally and
externally generated
information
▪ Flow of information that
allows for successful control
actions from instructions on
responsibilities to summary
of findings for management
action
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
Control Activities
▪ Policies/procedures that
ensure management
directives are carried out
▪ Range of activities
including approvals,
authorizations,
verifications,
recommendations,
performance reviews,
asset security and
segregation of duties
Risk Assessment
▪ Risk assessment is the
Control Environment identification and
▪ analysis of relevant risks
Sets tone of organization, influencing
to achieving the entity’s
control consciousness of its people
objectives – forming the
▪ Factors include integrity, ethical values, basis for determining
competence, authority, responsibility, control activities
organization structure, HR policies and IT
control environment
▪ Foundation for all other components of
control
10 - 7
 Methods Used : Understanding
Internal Control and Assessing Control Risk

Narrative

Flowchart
Internal
control
questionnaire

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 Tests of Controls

The procedures to test effectiveness of controls

in support of a reduced assessed control
risk are called tests of controls.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 9

 Procedures for Tests of
Controls
1. Make inquiries of client personnel

2. Examine documents, records, and reports

3. Observe control-related activities

4. Reperform client procedures

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 10

 Extent of Procedures

Reliance on evidence from prior year’s audit

Testing of controls related to significant risks

Testing less than the entire audit period

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 11

 Tests of Controls

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 Section 404 : Reporting on
Internal Control
1. The auditor’s opinion on whether management’s
assessment of the effectiveness of internal control
over financial reporting as of the end of the fiscal
period is fairly stated, in all material respects.

2. The auditor’s opinion on whether the company

maintained, in all material respects, effective
internal control over financial reporting as of
the specified date.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 13

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 14
 End of Chapter 9

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 10 - 15