PENGAUDITAN 1

Chapter 7 :
Materiality and Risk

Present By :
M.Riduan Abdillah SE,M.Si, Akt, CA
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-1
 Materiality

It is a major consideration in determining

the appropriate audit report to issue.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-2

 MATERIALITAS
MATERIALITAS
Adalah besarnya nilai yang dihilangkan atau
salah saji informasi akuntansi, yang dilihat dari
keadaan yang melingkupinya, dapat mengakibatkan perubahan atas
atau pengaruh terhadap pertimbangan orang yang meletakkan
kepercayaan terhadap informasi tersebut karena adanya penghilangan
atau salah saji itu.

PENTINGNYA KONSEP MATERIALITAS

Auditor tidak dapat memberikan jaminan (guarantee) bagi klien
atau pemakai laporan keuangan yang lain, bahwa laporan keuangan
auditan adalah benar. Karena auditor tidak memeriksa setiap transaksi
yang terjadi dalam tahun yang diaudit karena akan memerlukan waktu
dan biaya yang jauh melebihi manfaat yang dihasilkan.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-3

 Materiality

The auditor’s responsibility is to determine

whether financial statements are
materially misstated.
If there is a material misstatement,
the auditor will bring it to the client’s
attention so that a correction can be made.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-4

 Guidelines
Accounting and auditing standards
do not provide specific materiality
guidelines to practitioners.
Professional judgment is to be used
at all times in setting and applying
materiality guidelines.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-5

 Steps in Applying Materiality

Step Set preliminary judgment

1 about materiality
Planning
extent
Allocate preliminary of tests
Step judgment about
2 materiality to
segments

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-6

 Set Preliminary Judgment
About Materiality
Auditors decide early in the audit
the combined amount of misstatements
of the financial statements that would
be considered material.

This preliminary judgment is the maximum

amount by which the auditor believes the
statements could be misstated and still not
affect the decisions of reasonable users.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-7

 Materiality – Quantitative Example

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-8

 EXAMPLE
KLIEN NO. TOTAL ASET TOTAL PERTIMBANGAN
REVENUE AWAL
MATERIALITAS
1 5, JUTA 3 JUTA ?

2 30,75 JUTA 72,3 JUTA ?

3 475 JUTA 2 MILIAR ?

4 97 MILIAR 4 MILIAR ?

Note :
Pilihlah perbandingan yang lebih besar antara total
aset dengan total revenue.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-9
 ANSWER

1. 38.300 + (0,0067 x ( 5 juta – 3 juta )

= Rp 51.700

2. Silakan di jawab !

3. Silakan di jawab !

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

 Hubungan antara Materialitas
dengan Bukti Audit
 Semakin besar jumlah akun, semakin banyak jumlah
bukti audit yang diperlukan.

 Semakin kecil level materialitas, semakin banyak jumlah

bukti audit yang diperlukan.

 Semakin besar level materialitas, semakin sedikit jumlah

bukti audit yang diperlukan.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 11 9 - 11

 Factors Affecting Judgment

Materiality is a relative rather

than an absolute concept.

Bases are needed for

evaluating materiality.

Qualitative factors also

affect materiality.

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

 Materiality
The quantitative base for
The quantitative amounts
materiality is a percentage
may be adjusted lower for
(typically 3 to 5 percent) of:
qualitative factors such as:
• Total assets.
• First-year engagement.
• Total revenues.
• Control weaknesses.
• Income before taxes.
• Management turnover.
• Income from continuing
• High market pressures.
operations.
• High fraud risk.
• Gross profit
• Higher than normal risk
• Three-year average of
of bankruptcy.
income before taxes.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 13
 Steps in Applying Materiality

Step Estimate total

3 misstatement in segment

Step Estimate the

Evaluating
4 combined misstatement
results

Compare combined
Step
estimate with judgment
5
about materiality
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 14
 Allocate Preliminary Judgment
About Materiality to Segments
This is necessary because evidence is
accumulated by segments rather than
for the financial statements as a whole.

Most practitioners allocate materiality

to balance sheet accounts.

 SAS 107 (AU 312)

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 15

 Estimated Total Misstatement
and Preliminary Judgment
Estimated Misstatement Amount
Known
Misstatement
Tolerable and Direct Sampling
Account Misstatement Projection Error Total

Cash $ 4,000 $ 2,000 $ N/A $ 2,000

Accounts receivable 20,000 12,000 6,000 18,000
Inventory 36,000 31,500 15,750 47,250
Total estimated
misstatement amount $45,500 $16,800 $62,300
Preliminary judgment
about materiality $50,000

N/A = Not applicable

Cash audited 100 percent
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 16
 Estimated Total Misstatement
and Preliminary Judgment
Net misstatements in the sample ($3,500)

÷ Total sampled ($50,000)

× Total recorded population value ($450,000)

= Direct projection estimate of misstatement ($31,500)

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 17

 PENGERTIAN RISIKO
AUDIT
Risiko audit adalah risiko yang terjadi
dalam hal auditor, tanpa disadari,
tidak memodifikasi pendapatnya
sebagaimana mestinya, atas suatu
laporan keuangan yang mengandung
salah saji material.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 18

 Risk

Auditors accept some level of risk

in performing the audit.

An effective auditor recognizes that

risks exist, are difficult to measure,
and require careful thought to respond.

Responding to risks properly is critical

to achieving a high-quality audit.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 19

 Risk and Evidence
Auditors gain an understanding of the
client’s business and industry and
assess client business risk.

Auditors use the audit risk model to further

identify the potential for misstatements
and where they are most likely to occur.
Jenis Risiko Audit ( Audit Risk / AAR ) :
1. Risiko Deteksi ( Detection Risk / DR )
2. Risiko Inheren/Bawaan ( Inheren Risk / IR )
3. Risiko Pengendalian ( Control Risk / CR )
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 20
 Measurement Limitations

One major limitation in the application of the

audit risk model is
the difficulty of
measuring the components
of the model.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 21

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 22
 The Audit Risk Model
Inherent risk and control risk:
Risk that material misstatements exist

Audit Risk (AAR) = IR × CR × PDR

Detection risk:
Risk that auditor will not detect misstatements

• Inappropriate audit procedure

• Fail to detect when using Nonsampling Sampling
appropriate audit procedure risk risk
• Misinterpreting audit results
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 23
 Using the Audit Risk Model
Assess the client’s business risks.

Assess the risk of material

misstatement
due to error or fraud.

AAR = IR × CR × PDR

Auditee risk
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 24
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 25
 Audit Risk Model for Planning

PDR = AAR ÷ (IR × CR)

where: PDR = Planned detection risk

AAR = Acceptable audit risk

IR = Inherent risk

CR = Control risk

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 26

 Example : Risk Of Inventory

FORMULA :
PDR = AAR ÷ (IR × CR)

IR = 100 % = 1,0
CR = 100% = 1,0
AAR = 5% = 0,05

PDR = 0,05 = 0,05 atau 5%

1,0 x 1,0

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 27

 Illustration of Differing
Evidence Among Cycles
Sales and Acquisition Payroll and
collection and payment personnel
cycle cycle cycle
Inherent
A Medium High Low
risk
Control
B Medium Low Low
risk
Acceptable
C Low Low Low
audit risk
Planned
D Medium Medium High
detection risk
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 28
 Illustration of Differing
Evidence Among Cycles
Inventory and Capital acquisition
warehousing and repayment
cycle cycle
Inherent
A High Low
risk
Control
B High Medium
risk
Acceptable
C Low Low
audit risk
Planned
D Low Medium
detection risk
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 29
 Relationship of Factors Influencing
Risks to Risks and Risks to
Planned Evidence
 Auditors can change the audit
to respond to risks

 The engagement may require

more experienced staff

 The engagement will be reviewed

more carefully than usual

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 30

 Relationships of Risk to
Evidence
Planned Amount of
Acceptable Inherent Control detection evidence
Situation audit risk risk risk risk required

1 High Low Low High Low

2 Low Low Low Medium Medium
3 Low High High Low High
4 Medium Medium Medium Medium Medium
5 High Low Medium Medium Medium

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 31

 Revising Risks and Evidence

The auditor must revise the original

assessment of the appropriate risk.

The auditor should consider the effect

of the revision on evidence requirements,
without the use of the audit risk model.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 32

 End of Chapter 7

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9 - 33