2 - 1 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Audit Reports LAPORAN AUDIT Chapter 2

2 - 2 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Uraian Bagian-Bagian dari Syarat Baku Laporan Audit. Uraian Bagian-Bagian dari Syarat Baku Laporan Audit.

2 - 3 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Audit report 1. Report title (Judul Laporan) 2. Audit report address (Alamat laporan Audit) 3. Introductory paragraph (Paragraf pengantar) 4. Scope paragraph (Paragraf Lingkup Audit) 5. Opinion paragraph (Paragraf pendapat) 6. Name of CPA firm (Tanda dan Nama AP) 7. Audit report date (Tanggal laporan Audit)

2 - 4 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Report title (Judul Laporan) Harus memuat kata-kata Independen Contoh “ LAPORAN AUDITOR INDEPENDEN”

2 - 5 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Audit report addres (Alamat laporan Audit) Ditujukan kepada pemakai Laporan Keuangan Auditan Contoh " PEMEGANG SAHAM & DEWAN KOMISARIS

2 - 6 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Introductory paragraph (Paragraf pengantar) Menyatakan auditor telah melaksanakan Audit Menjelaskan laporan keuangan yang diaudit Menjelaskan laporan keuangan tersebut merupakan tanggung jawab manajemen

2 - 7 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Scope Paragraph (Paragraf Lingkup Audit Peryataan aktual apa yang dilakukan auditor Auditor melaksankan audit mengikuti standar auditng yang ditetapkan oleh IAI

2 - 8 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Opinion paragraph (Paragraf pendapat) Memuat kesimpulan auditor berdasarkan hasil audit

2 - 9 ©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Name of CPA firm (Tanda dan Nama AP) Yang bertanggung jawab atas audit yang dilakukan

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Audit report date (Tanggal laporan Audit) Tanggal pada saat auditor selesai melakukan audit

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Four Categories of Audit Reports Standard unqualified Unqualified with explanatory paragraph or modified wording Qualified Adverse or disclaimer

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Standard unqualified 1.PAYBU DIGUNAKAN DALAM MENYUSUN LAPORAN KEUANGAN 2.PERUBAHAN PENERAPAN PAYBU DARI PERIODE KE PERIODE TELAH DITERAPKAN 3.INFORMASI DALAM CATATAN YANG MEDUKUNG TELAH DIGAMBARKAN DAN DIJELASKAN DENGAN CUKUP DALAM LAPORAN KEUANGAN SESUAI DENGAN PAYBU

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Standard unqualified 1.KETIGA STANDAR UMUM TELAH DIIKUTI SEPENUHNYA DALAM PENUGASAN AUDIT 2.BAHAN BUKTI AUDIT YANG CUKUP TELAH DIKUMPULKAN 3.TELAH DILAKSANAKAN DENGAN CARA MEMUNGKINKAN UNTUK MENYIMPULKAN BAHWA KETIGA STANDAR PEKERJAAN LAPANGAN

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley QUALIFIED 1.LAPORAN KEUANGAN TIDAK DISUSUN SESUAI DENGAN PAYBU 2.LINGKUP ADUIT DIBATASI OLEH KLIEN 3.PAYBU YANG DIGUNAKAN DALM PENYSUSUNAN LAPORAN KEUANGAN TIDAK DITERAPKAN SECRA KONSISTEN

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley QUALIFIED 1. AUDITOR TIDAK DAPAT MELAKSANAKAN PROSEDUR AUDIT PENTING ATAU TIDAK DAPAT MEMPEROLEH INFORMASI PENTING KARENA KONDISI-KONDISI YANG BERADA DILUAR KEKAUASAAN KLIEN MAUPUN AUDITOR

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 3 Describe the five circumstances when an unqualified report with an explanatory paragraph or modified wording is appropriate. Describe the five circumstances when an unqualified report with an explanatory paragraph or modified wording is appropriate.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Unqualified Report with Explanation TIDAK AD KONSISTEN KETIDAKPASTIAN YANG MATERIAL KERGUAN ATAS KELANGSUNGAN HIDUP PERUSAHAAN AUDITOR SETUJU DENGAN PEYIMPANGAN TERHADAP PAYBU PENEKANAN ATAS SUATU HAL. LAPORAN YANG MELIBATKAN AUDITOR LAIN.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Consistency versus Comparability Changes that affect consistency and require an explanatory paragraph if they are material: 1. Changes in accounting principles 2. Changes in reporting entities 3. Corrections of errors involving principles

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Consistency versus Comparability Changes that affect comparability but not consistency: 1. Changes in an estimate 2. Error corrections not involving principles 3. Variations in format and presentation of financial information 4. Changes because of substantially different transactions or events

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Substantial Doubt about Going Concern 1. Significant recurring operating losses or working capital deficiencies 2. Inability of the company to pay its obligations as they come due 3. Loss of major customers, the occurrence of uninsured catastrophes 4. Legal proceedings, legislation, that might jeopardize the entity’s ability to operate

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Auditor Agrees with a Departure from a Promulgated Principle The auditor must be satisfied and must state and explain, in a separate paragraph or paragraphs in the audit report, that adhering to the principle would have produced a misleading result in that situation.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Emphasis on a Matter Under certain circumstances, the CPA may want to emphasize specific matters regarding the financial statements, even though the CPA intends to express an unqualified opinion.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Reports Involving Other Auditors 1. Make no reference in the audit report. 3. Qualify the opinion. 2. Make reference in the report (modified wording report).

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 4 Identify the types of audit reports that can be issued when an unqualified opinion is not justified. Identify the types of audit reports that can be issued when an unqualified opinion is not justified.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Departures from an Unqualified Opinion 1. Scope limitation 2. GAAP departure 3. Auditor not independent

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Qualified Opinion A qualified opinion report can result from a limitation on the scope of the audit or failure to follow generally accepted accounting principles.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Adverse Opinion It is used only when the auditor believes that the overall financial statements are so materially misstated or misleading that they do not present fairly the financial position or results of operations and cash. flows in conformity with GAAP.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Disclaimer of Opinion It is issued when the auditor is unable to be satisfied that the overall financial statements are fairly presented.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 5 Explain how materiality affects audit reporting decisions. Explain how materiality affects audit reporting decisions.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Materiality A misstatement in the financial statements can be considered material if knowledge of the misstatement would affect a decision of a reasonable user of the statements.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Levels of Materiality Amounts are immaterial. Amounts are material but do not overshadow the financial statements as a whole. Amounts are so material or so pervasive that overall fairness of the statements is in question.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Relationship of Materiality to Type of Opinion Materiality Level Significance in Terms of Reasonable Users’ Decisions Type of Opinion Users’ decisions are unlikely to be affected. ImmaterialUnqualified Users’ decisions are likely to be affected. MaterialQualified Users’ decisions are likely to be significantly affected. Highly Material Disclaimer or Adverse

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Materiality Decisions Failure to follow GAAP Audit report Unqualified Qualified opinion only Adverse

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Materiality Decisions Dollar amount compared with a base Measurability Nature of the item

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Materiality Decisions Scope limitation Audit report Unqualified Qualified scope and opinion Disclaimer

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 6 Draft appropriately modified audit reports under a variety of circumstances. Draft appropriately modified audit reports under a variety of circumstances.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Discussion of Conditions Requiring Departure Auditor’s scope has been restricted. Statements are not in conformity with GAAP. Auditor is not independent.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Scope Restricted by Client or Conditions ImmaterialMaterial Level of Materiality Extremely Material Unqualified report Qualified scope, additional paragraph, and qualified opinion (except for) Disclaimer of opinion

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Statements Not Prepared in Accordance With GAAP ImmaterialMaterial Level of Materiality Extremely Material Unqualified report Additional paragraph and qualified opinion (except for) Adverse opinion

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley The Auditor Is Not Independent ImmaterialMaterial Level of Materiality Extremely Material Disclaimer of opinion (regardless of materiality)

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 7 Determine the appropriate audit report for a given audit situation. Determine the appropriate audit report for a given audit situation.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Auditor’s Decision Process Determine whether any condition exists requiring a departure from a standard unqualified report. Decide the materiality for each condition. Decide the appropriate type of report. Write the audit report.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Number of Paragraphs in the Report Standard3 Unqualified with explanatory paragraph4 Unqualified shared report with other auditors3 Qualified – opinion only4 Qualified – scope and opinion4 Disclaimer – scope limitation3 Adverse4

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 8 Discuss the impact of e-commerce on audit reporting. Discuss the impact of e-commerce on audit reporting.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Impact of E-Commerce on Audit Reporting Auditors are not required to read information contained in electronic sites. Most companies provide access to financial information through their home Web page. Auditing standards note that electronic sites are not considered “documents.”

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley End of Chapter 2