AUDITING

Our Auditing services cover:
• General audit,
• Special audit,
• Investigation,
• Internal Audit,
• Management Audit.

The Purpose of Auditing The purpose of general audit of financial report provided by “Drs. Amril Saputra & Partners” is to give an opinion if financial statement of a company is consistently prepared in accordance with Indonesian Accounting Standard (SAK). The auditing process is conducted in according with Professional Standard of Public Accountant (SPAP). Stating our opinion is composed in a short accounting financial statement, some times it designed in a longer one as conditioned in tax administration for applying short-term loan for International Institution/Board. A short financial report is a main report consists of balance sheet, income statement, and financial position, and record about the financial statement. Besides the main report, we sometimes provide addition information namely details of additional description of financial statement accounts or other data concerned with financial report, or information about consolidation report, statistical data, or other information which is probably from a part from the company or not accounting data. The addition financial report information, excluding main report, is called a longer accounting report.Plan and audit supervision In auditing plan, it is designed an integrated strategy about the action to be taken about the scope of auditing. Characteristics, wideness, and time of auditing plan are different according to the large and the complexion of an entity, the experienced and acknowledgment about the firm itself. All those state above is merged into a writing program, which is must be determined as followed: a.Business activities and field b.Policy and accounting procedure. c.Anticipation about how accountants do to control internal accounting system. d.The preliminary determination about the level of material of the purpose of auditing. e.The accounts in financial statement are most possible to be corrected or adjusted. f.The condition the might be needed to enlarge or modify the rectification such as the condition which brought about to be possible wrong or materially disorder or wrong or there are some transaction with part connecting to related party transaction. g.The nature of accountant report that designed and submitted to clients.

The procedure we imply in audit plan is normally enclosed re-checking for client records and to discuss to the important party involved. The procedures include: a.Verifying correspondence files, worksheets of previous years, permanent worksheet, financial and accountant report of the previous years. b.Discussing the problem might affect audit work as we are having the authority and responsibility for firm audit. c.To arrange discussion with clients about the recent growth and development of the firm which could affect business unit. d.To learn interim report of client financial statement of the current year. e.To discuss type, method, scope of auditing with the management or commissioner of the firm. f.To determine the affect of changing regulation in accounting as well as accounting audit that issued by Ikatan Akuntan Indonesia Seksi Akuntan Publik, especially the latest regulations. g.To coordinate client employee in finding and preparing data that are needed in auditing process. h.To determine the wideness of rules of consultants, operation lists, and internal auditors, if found, in internal audit. i.To design the program schedule of the audit work. j.To determine and coordinate the need of audit staff.

For a large scale and complex company, we might have to issue a memorandum that describes the preliminary plan of audit work. The work is usually a detail investigation about accounting procedures and internal control to assure whether the procedures are theoretically fulfills all company financial transaction. Direct checking of the transaction whether the procedures are really implied follows the work of investigation. The scope of this checking is depended on our result of our supervision of the completion of procedure of the company. This investigation is not limited to the controlling proposed by accounting department, but also include financial control which responsible to purchasing, selling, workforce, technical supervision, it also includes the control of investment and the managing functions. The important aspect of this approach is that in the case of client which does not have a perfect system. In this matter, we recommend literally to the director involved in the firm that why the current system is not complete and how to improve it.

Verification The next important step of audit work of “Drs. Amril Saputra & Rekan” is verification whether the financial report describe normally or not. Some of the examples we can explain as follows: a.To compare balance sheet and income statement with the journal and ledger record to maintain the adjustment. b.To verify the right, the existence, and the value of asset as listed in the balance sheet. c.To verify payable and receivable which stated in the balance sheet. d.To verify income/profit, which shows in income statement, whether it is normal or not. e.In case of the corporation (PT), confirmation of statutory capital involved or not.

In line with the above examples, the audit procedure we apply as follows: a.The observation of procedures to calculate the inventory of the company. b.To verify fixed asset and inventory value by proving the accounting record of the real cost. c.To analyze the confirmation of total receivable and payable directly to the client’s customer. d.To set the possibility of allowance of receivable accordingly to total receivable that will be received in the early of next year. e.To check the procedures and set up of inventory which rarely used.