Auditing Excercise

1-15. Types of audits and auditor

a.       Primary purpose of an operational audit is to provide…

(2) A measure of management performance in meeting organizational goals.

Operational audit berkaitan dengan review dari manajemen dan prosedur operasi apakah berfungsi efektif dan efisien dalam mencapai tujuan yaitu menghasilkan barang dan jasa.

b.       Internal auditor is more likely to be concerned with…

(4) Internal Control

Exp: scope dari internal audit dalam organisasi adalah secara keseluruhan. Seperti pengelolaan perusahaan, risk management dan kontrol terhadap risk, efisiensi/efektifnes dari operation, keandalan dari laporan keuangan dan manajemen, serta ketaatannya dengan ketentuan dan aturan.

Internal auditor juga harus mempersiapkan audit plan yang mencakup keseluruhan aktifitas organisasi. Jadi internal auditor akan concerned kepada kontrol perusahaan keseluruhan.

c.        Best describes the operational audit

(4) It concentrates on seeking aspects of operations in which waste could be reduced by the introduction of controls.

Exp: Operational audit berkaitan dengan prosedur menghasilkan barang atau jasa. Fokus dari scheduling dan time efficiency dari operational audits adalah mengurangi jumlah waktu yang dibutuhkan untuk produksi dan deliver barang dan jasa. ‘Waste’ dalam hal ini bisa berarti waktu yang tidak diperlukan.

d.       Compliance auditing often extends beyond audits leading to the expression of opinions on the fairness of financial presentation and includes audits of efficiency, economy, effectiveness, as well as…

(1)     Accuracy

Exp: Keakuratan sebuah aktifitas, laporan, atau aturan juga menjadi pertimbangan pada kegiatan mengaudit.

1-17. Various audit, attestation, assurance engagements involving auditors.

a.       Relationship among audit services, attestation services, and assurance services.

b.       Indicate the type of service

(1)     An audit of historical financial statements.

(2)     An attestation service other than an audit service.

(3)     An assurance service that is not an attestation service.

1.       A report on the effectiveness of internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act. (1)

2.       An auditor’s report on whether the financial statements are fairly presented in accordance with International Financial Reporting Standards. (1)

3.       A report stating whether the company has complied with restrictive covenants related to officer compensation and payment of dividends contained in a bank loan agreement. (2)

4.       An electronic seal indicating that an electronic seller observes certain practices. (3)

5.       A report indicating whether a governmental entity has complied with certain government regulations. (2)

6.       A report on the examination of financial forecast. (3)

7.       A review report that provides limited assurance about whether financial statements are fairly stated in accordance with U.S. GAAP. (2)

8.       A report on management’s assertion on the company’s level of carbon emissions. (2)

9.       A report about management’s assertion on the effectiveness of controls over the availbaility, reliability, integrity, and maintainability if its accounting information system. (2)

10.    An evaluation of the effectiveness of key measures used to assess an entity’s success in achieving specific targets linked to an entity’s strategic plan an vision. 3)