APPENDIX
III
REGULATION
OF THE AUDIT BOARD OF THE REPUBLIC
OF
INDONESIA NUMBER 1 OF 2017
STATE
FINANCIAL INSPECTION STANDARDS
Standards
EXAMINATION 200
STANDARD
STATEMENT OF EXAMINATION 200
STANDARD
EXAMINATION
PRELIMINARY
Scope
1. This PSP set common standards for carrying out the financial audit, performance audit, and
PDTT.
2. The general standard is concerned with ethics; independence, integrity, and professionalism; quality control; competence; consideration of non-compliance, fraud and impropriety; communication of inspection; and documentation of inspection in the implementation
and reporting of test results; relationships with professional standards used by a public accountant;
as well as the obligation of the Government Internal Supervisory Apparatus and public accountant
in the state financial audit.
Effective date
3. The PSP is valid and binding legal effect from the date of promulgation.
AIM
4. Interest inspectors in carrying out the General Standard is as basic to implement performance
standards and reporting standards effectively. Thus, common standards must be followed by
the CPC and all examiner conducting the examination based on the Standard Examination.
DEFINITION
5. For the purpose of this standard, the below terms mean as follows:
a. Audit Board hereinafter referred to as the CPC is a state institution that has the duty and
authority to audit the management and financial responsibility of the state.
b. Investigators are people who carry out inspection tasks and the management of state financial
responsibility for and on behalf of the CPC.
c. Subject matter ( subject matter) are things that are checked and / or things
assignment of concern in an examination, which may include such information, condition,
or activity can be measured / evaluated based on certain criteria.
d. Information subject matter ( subject matter information) is the result of the evaluation or measurement results of the subject matter against criteria.
e. Ethics is an attitude and behavior that shows a person's willingness and ability consciously to
comply with the regulations and norms in an organization.
f. Code BPK hereinafter called the Code are the norms that must be complied with by all
members of BPK and Examiner during their duties to safeguard the dignity, honor, image
and credibility of the CPC.
g. The independence is an attitude and actions in carrying out the checks to be impartial and
seen no partiality to anyone, and is not affected and is deemed not influenced by anyone.
h. Integrity is the quality, nature, or the circumstances indicate a unified whole, has the nature of
honesty, hard work, as well as adequate competence.
i. Professionalism is the ability, expertise, and commitment to the profession in the line of duty.
j. Professionals are things related to a profession that requires a knack for it to run.
k. Professional skepticism is an attitude that includes a questioning mind always and evaluate
critically the evidence for examination or other things during the inspection.
l. Professional judgment is the application of collective knowledge, skills, ethics and
experience of the examiner at the examination process.
m. Quality control standards is a benchmark for assessing the extent to which the inspection process goes according to inspection standards.
n. Quality control system is a set of procedures and policies in place to ensure inspection
practices in accordance with the standards and provisions of the legislation ,
o. Competence is the education, knowledge, experience and / or expertise a person has, either
on examination or on matters or certain fields.
p. Competent is competent or capable in the areas under their control.
q. Experts are people who have expertise in matters or specific areas, which are needed in the
examination and not an Examiner.
r. cheating ( fraud) is the act which contains the element of intent, intention, benefit themselves or others, deception, concealment or fraud, and abuse of trust that aims to gain unauthorized to be money, goods / property, services, and do not pay for the services, which are performed by one individual or more than the parties responsible for the governance, employees, or third parties.
s. infelicity ( abuse) is behavior that is lacking or is not worth doing when compared to the behavior of the wise and use common sense to consider the governance practices of public finances well.
t. Fraud risk factors are events or conditions that indicate an incentive or pressure to commit
fraud or provide an opportunity to commit fraud.
u. An early indication of fraud are the symptoms ( red flags) which shows the possibility of
fraud.
v. Predication is the entirety of the event, the circumstances at the time of the incident, and all
things related or associated to bring someone who has common sense, professional, and
has a degree of caution, to be sure that fraud has been, is being or will occur. Predication is
basic to start PDTT in the form of investigative examination.
w. Examination communication is the process used by the CPC or the examiner in the
acquisition of data and information in the context of the examination of evidence collection
and delivery of examination results to the responsible party.
x. Documentation is the documentation of inspection audit procedures have been carried out,
the evidence is sufficient and appropriate audit obtained, and the conclusions drawn by the
examiner.
Scope
1. This PSP set common standards for carrying out the financial audit, performance audit, and
PDTT.
2. The general standard is concerned with ethics; independence, integrity, and professionalism; quality control; competence; consideration of non-compliance, fraud and impropriety; communication of inspection; and documentation of inspection in the implementation
and reporting of test results; relationships with professional standards used by a public accountant;
as well as the obligation of the Government Internal Supervisory Apparatus and public accountant
in the state financial audit.
Effective date
3. The PSP is valid and binding legal effect from the date of promulgation.
AIM
4. Interest inspectors in carrying out the General Standard is as basic to implement performance
standards and reporting standards effectively. Thus, common standards must be followed by
the CPC and all examiner conducting the examination based on the Standard Examination.
DEFINITION
5. For the purpose of this standard, the below terms mean as follows:
a. Audit Board hereinafter referred to as the CPC is a state institution that has the duty and
authority to audit the management and financial responsibility of the state.
b. Investigators are people who carry out inspection tasks and the management of state financial
responsibility for and on behalf of the CPC.
c. Subject matter ( subject matter) are things that are checked and / or things
assignment of concern in an examination, which may include such information, condition,
or activity can be measured / evaluated based on certain criteria.
d. Information subject matter ( subject matter information) is the result of the evaluation or measurement results of the subject matter against criteria.
e. Ethics is an attitude and behavior that shows a person's willingness and ability consciously to
comply with the regulations and norms in an organization.
f. Code BPK hereinafter called the Code are the norms that must be complied with by all
members of BPK and Examiner during their duties to safeguard the dignity, honor, image
and credibility of the CPC.
g. The independence is an attitude and actions in carrying out the checks to be impartial and
seen no partiality to anyone, and is not affected and is deemed not influenced by anyone.
h. Integrity is the quality, nature, or the circumstances indicate a unified whole, has the nature of
honesty, hard work, as well as adequate competence.
i. Professionalism is the ability, expertise, and commitment to the profession in the line of duty.
j. Professionals are things related to a profession that requires a knack for it to run.
k. Professional skepticism is an attitude that includes a questioning mind always and evaluate
critically the evidence for examination or other things during the inspection.
l. Professional judgment is the application of collective knowledge, skills, ethics and
experience of the examiner at the examination process.
m. Quality control standards is a benchmark for assessing the extent to which the inspection process goes according to inspection standards.
n. Quality control system is a set of procedures and policies in place to ensure inspection
practices in accordance with the standards and provisions of the legislation ,
o. Competence is the education, knowledge, experience and / or expertise a person has, either
on examination or on matters or certain fields.
p. Competent is competent or capable in the areas under their control.
q. Experts are people who have expertise in matters or specific areas, which are needed in the
examination and not an Examiner.
r. cheating ( fraud) is the act which contains the element of intent, intention, benefit themselves or others, deception, concealment or fraud, and abuse of trust that aims to gain unauthorized to be money, goods / property, services, and do not pay for the services, which are performed by one individual or more than the parties responsible for the governance, employees, or third parties.
s. infelicity ( abuse) is behavior that is lacking or is not worth doing when compared to the behavior of the wise and use common sense to consider the governance practices of public finances well.
t. Fraud risk factors are events or conditions that indicate an incentive or pressure to commit
fraud or provide an opportunity to commit fraud.
u. An early indication of fraud are the symptoms ( red flags) which shows the possibility of
fraud.
v. Predication is the entirety of the event, the circumstances at the time of the incident, and all
things related or associated to bring someone who has common sense, professional, and
has a degree of caution, to be sure that fraud has been, is being or will occur. Predication is
basic to start PDTT in the form of investigative examination.
w. Examination communication is the process used by the CPC or the examiner in the
acquisition of data and information in the context of the examination of evidence collection
and delivery of examination results to the responsible party.
x. Documentation is the documentation of inspection audit procedures have been carried out,
the evidence is sufficient and appropriate audit obtained, and the conclusions drawn by the
examiner.
CONDITIONS
Ethics
6. Members of the CPC and the examiner must carry out inspection in accordance with ethical principles as an essential element of the value of accountability and public expectations to the CPC
and the Examiner in the inspection.
Independence, integrity, and professionalism
7. Members BPK and the Examiner in performing its duties and authorities must adhere to ethical
principles: independence, integrity, and professionalism are the basic values of the CPC. (Ref. Para. A1-A2)
8. The examiner should use the professional skills of a careful and thorough, professional skepticism and professional judgment throughout the inspection process. (Ref. Para. A3-A9)
Quality control
9. CPCs shall establish a quality control standards to ensure the quality of the examination results.
10. In applying the quality control standards, the CPC shall establish and develop a quality control system to ensure that the examination in accordance with auditing standards and the provisions
of the legislation.
11. The system of quality control consists of policies and procedures to ensure the acquisition of
high-quality test results in accordance with auditing standards and the provisions of the legislation.
12. The examiner must implement a quality control system at the time of assignment to provide
reasonable assurance that the examination in accordance with auditing standards and the provisions of the legislation, and LHP are appropriate in the circumstances.
Competence
13. Examining collectively should have sufficient professional competence to carry out inspection
tasks. Professional competence is evidenced by a professional certificate issued by competent
authorities or other documents stating expertise. (Ref: Para. A10 - A11)
14. CPCs shall determine the competencies needed to ensure the Examiner has the appropriate
expertise to conduct the examination assignment.
15. The examiner must maintain competence through continuing professional education for a minimum of 80 (eighty) hours in two (2) years.
Use of Expert
16. CPCs may use competent experts. (Ref: Para. A12)
17. In the use of experts, the CPC must ensure that the independent expert, qualified, competent in
the field, and shall document that belief.
Utilization of External Examiner at BPK
18. CPCs may employ outside BPK examiner and should be independent and have the necessary
competence. Competence of inspectors outside the CPC evidenced by a professional certificate
issued by competent authorities or other documents stating expertise.
For Continuing Education Expert and Examiner on Foreign Workers BPK
19. CPCs are responsible for ensuring energy experts and outside the CPC inspectors involved in
the inspection process meet continuing education requirements.
Non-compliance considerations, Cheating, and infelicity
20. The examiner should design the audit to provide reasonable assurance to detect non-compliance with the provisions of the legislation, contracts, and other legal products that have direct effect and material to the subject matter / subject matter information being examined. The direct effect and material can be:
a. things that cause misstatements in the financial statements;
b. things that cause performance irregularities related to the economic aspects, efficiency, and
effectiveness;
c. things that cause deficiencies and irregularities in the administration acceptance; and / or
d. things that cause the potential loss of state / regional and / or financial loss countries /
regions.
21. The examiner should identify fraud risk factors and assess the risks of non-compliance with the
provisions of the legislation which is due to fraud ( fraud) and / or impropriety ( abuse).
These risks should be considered as a significant risk ( significant risks) and the examiner must gain an understanding of controls associated with these risks. (Ref: Para. A13)
22. If there is a risk of non-compliance with the provisions of the legislation which indicate fraud and
impropriety that significantly affect the subject matter / subject matter information is checked, the Investigator must modify the procedure to identify the occurrence of fraud and / or impropriety, and to determine their impact on the subject matter / information about the subject matter being examined.
23. The examiner must disclose non-compliance with the provisions of the legislation which indicate
fraud, impropriety, and / or loss countries / regions, as well as a direct effect of non-compliances and material to the subject matter / subject matter information is checked according to regulations.
24. PDTT in the form of investigative checks only when there is sufficient predication. Predication can be derived from the findings of the examination besides PDTT in the form of investigative checks, internal and external parties information BPK. The findings or the information should be tested for feasibility before it could be accepted as a predication.
communications Inspection
25. The examiner must establish an efficient and effective communication throughout the process,
so that the inspection process to run smoothly and the results can be understood and acted upon by the parties responsible and / or stakeholders. (Ref: Para. A14)
26. The examiner should use professional judgment to determine the form, content, and intensity of
communication.
27. If there is a cessation of the examination, examiner must provide a written explanation to the
officials who give the assignment.
28. CPCs shall communicate in writing the reason for termination hearing to the audited entity, the
entity requesting examination, agency representatives, and / or law enforcement agency.
documentation Examination
29. The examiner must establish an adequate examination of the documentation in a timely manner
at all stages of investigation and provide a clear understanding of audit procedures performed,
professional judgment, evidence obtained and conclusions made.
30. The examiner must establish inspection documentation in order to provide clear and adequate
information. Through the documentary, Another examiner who has no background knowledge
on the examination can understand the nature, scope and results of audit procedures performed, evidence obtained in support of the findings, conclusions, and recommendations of the inspection, as well as the reason behind all significant matters required in taking professional judgment and related conclusions.
31. CPCs should develop inspection documentation system that efficiently and effectively in accordance with the provisions of the legislation.
Relations with Professional Standards Used by Public Accountant
32. In the financial checks, these checks Standards enforce auditing standards contained in SPAP
defined by the association of the public accounting profession, all other provisions in this
Inspection Standards.
Obligations of Government Internal Supervisory Apparatus and Public Accountant in the
State Audit
33. The Government Internal Supervisory Apparatus which to conduct performance audits and
audits for specific purposes, and public accountants who examine the financial state based on
the provisions of law shall implement all relevant provisions of this Inspection Standards.
Ethics
6. Members of the CPC and the examiner must carry out inspection in accordance with ethical principles as an essential element of the value of accountability and public expectations to the CPC
and the Examiner in the inspection.
Independence, integrity, and professionalism
7. Members BPK and the Examiner in performing its duties and authorities must adhere to ethical
principles: independence, integrity, and professionalism are the basic values of the CPC. (Ref. Para. A1-A2)
8. The examiner should use the professional skills of a careful and thorough, professional skepticism and professional judgment throughout the inspection process. (Ref. Para. A3-A9)
Quality control
9. CPCs shall establish a quality control standards to ensure the quality of the examination results.
10. In applying the quality control standards, the CPC shall establish and develop a quality control system to ensure that the examination in accordance with auditing standards and the provisions
of the legislation.
11. The system of quality control consists of policies and procedures to ensure the acquisition of
high-quality test results in accordance with auditing standards and the provisions of the legislation.
12. The examiner must implement a quality control system at the time of assignment to provide
reasonable assurance that the examination in accordance with auditing standards and the provisions of the legislation, and LHP are appropriate in the circumstances.
Competence
13. Examining collectively should have sufficient professional competence to carry out inspection
tasks. Professional competence is evidenced by a professional certificate issued by competent
authorities or other documents stating expertise. (Ref: Para. A10 - A11)
14. CPCs shall determine the competencies needed to ensure the Examiner has the appropriate
expertise to conduct the examination assignment.
15. The examiner must maintain competence through continuing professional education for a minimum of 80 (eighty) hours in two (2) years.
Use of Expert
16. CPCs may use competent experts. (Ref: Para. A12)
17. In the use of experts, the CPC must ensure that the independent expert, qualified, competent in
the field, and shall document that belief.
Utilization of External Examiner at BPK
18. CPCs may employ outside BPK examiner and should be independent and have the necessary
competence. Competence of inspectors outside the CPC evidenced by a professional certificate
issued by competent authorities or other documents stating expertise.
For Continuing Education Expert and Examiner on Foreign Workers BPK
19. CPCs are responsible for ensuring energy experts and outside the CPC inspectors involved in
the inspection process meet continuing education requirements.
Non-compliance considerations, Cheating, and infelicity
20. The examiner should design the audit to provide reasonable assurance to detect non-compliance with the provisions of the legislation, contracts, and other legal products that have direct effect and material to the subject matter / subject matter information being examined. The direct effect and material can be:
a. things that cause misstatements in the financial statements;
b. things that cause performance irregularities related to the economic aspects, efficiency, and
effectiveness;
c. things that cause deficiencies and irregularities in the administration acceptance; and / or
d. things that cause the potential loss of state / regional and / or financial loss countries /
regions.
21. The examiner should identify fraud risk factors and assess the risks of non-compliance with the
provisions of the legislation which is due to fraud ( fraud) and / or impropriety ( abuse).
These risks should be considered as a significant risk ( significant risks) and the examiner must gain an understanding of controls associated with these risks. (Ref: Para. A13)
22. If there is a risk of non-compliance with the provisions of the legislation which indicate fraud and
impropriety that significantly affect the subject matter / subject matter information is checked, the Investigator must modify the procedure to identify the occurrence of fraud and / or impropriety, and to determine their impact on the subject matter / information about the subject matter being examined.
23. The examiner must disclose non-compliance with the provisions of the legislation which indicate
fraud, impropriety, and / or loss countries / regions, as well as a direct effect of non-compliances and material to the subject matter / subject matter information is checked according to regulations.
24. PDTT in the form of investigative checks only when there is sufficient predication. Predication can be derived from the findings of the examination besides PDTT in the form of investigative checks, internal and external parties information BPK. The findings or the information should be tested for feasibility before it could be accepted as a predication.
communications Inspection
25. The examiner must establish an efficient and effective communication throughout the process,
so that the inspection process to run smoothly and the results can be understood and acted upon by the parties responsible and / or stakeholders. (Ref: Para. A14)
26. The examiner should use professional judgment to determine the form, content, and intensity of
communication.
27. If there is a cessation of the examination, examiner must provide a written explanation to the
officials who give the assignment.
28. CPCs shall communicate in writing the reason for termination hearing to the audited entity, the
entity requesting examination, agency representatives, and / or law enforcement agency.
documentation Examination
29. The examiner must establish an adequate examination of the documentation in a timely manner
at all stages of investigation and provide a clear understanding of audit procedures performed,
professional judgment, evidence obtained and conclusions made.
30. The examiner must establish inspection documentation in order to provide clear and adequate
information. Through the documentary, Another examiner who has no background knowledge
on the examination can understand the nature, scope and results of audit procedures performed, evidence obtained in support of the findings, conclusions, and recommendations of the inspection, as well as the reason behind all significant matters required in taking professional judgment and related conclusions.
31. CPCs should develop inspection documentation system that efficiently and effectively in accordance with the provisions of the legislation.
Relations with Professional Standards Used by Public Accountant
32. In the financial checks, these checks Standards enforce auditing standards contained in SPAP
defined by the association of the public accounting profession, all other provisions in this
Inspection Standards.
Obligations of Government Internal Supervisory Apparatus and Public Accountant in the
State Audit
33. The Government Internal Supervisory Apparatus which to conduct performance audits and
audits for specific purposes, and public accountants who examine the financial state based on
the provisions of law shall implement all relevant provisions of this Inspection Standards.
EXPLANATION
OF APPLICATION AND OTHER MATERIALS
Independence, integrity, and professionalism
The independence (Ref: Para. 7)
A1. BPK need personal attention disorders the independence inspectors. Personal disruption caused by a relationship and personal views may result in the Examining limiting the scope of questions and disclosures or weaken the findings in all its forms. The examiner is responsible to inform the competent authorities in the CPC if it has a private nuisance against independence. Personal interference of individual inspectors, among others:
a. relationship consanguinity upward, downward, or marriage to the second degree with the
management of the entity or program being examined;
b. has a financial interest, directly or indirectly, to any entity or program being examined;
c. never work or provide services to the entity or program being examined within a period
of two (2) years;
d. have a cooperative relationship with the entity or program being examined; and
e. involved directly or indirectly in the object of inspection activities, such as providing
assistance, consulting services, systems development, drafting and / or reviewing the
financial statements of the entity or program being examined.
Integrity (Ref: Para.7) A2.
Integrity among others is manifested in being honest, objective, and firm in applying the
principles, values and decisions. Disruption of the integrity include:
a. requesting and / or receiving money, goods, and / or facilities, either directly or indirectly
from the parties related to the investigation;
b. hinder the implementation of inspection tasks to private interests, a person, and / or class;
c. imposing personal will to the parties under investigation; and
d. change findings or orders to change the inspection findings, opinions, conclusions, and
recommendations examination results that do not fit the facts and / or evidence in the
examination.
Professional Proficiency (Ref: Para. 8)
A3. The examiner should use the professional skills of a careful and thorough
in determining the type of examination to be carried out, determine the scope of the
examination, choosing methodology, determining the type and amount of evidence to be
collected, or in selecting the testing and procedures for conducting the examination, as well as
in the assessment and reporting of test results.
Professional Skepticism (Ref: Para. 8)
A4. The examiner must plan, implement, and report inspection
with an attitude of professional skepticism. Examiner recognizes that certain circumstances can
cause major issues deviate from the criteria. The attitude of professional skepticism means the
examiner makes a critical assessment in mind always questioned the sufficiency and
appropriateness of evidence obtained during the investigation.
A5. The examiner should use professional skepticism in evaluating the risk of
fraud significantly to determine factors or risks that could significantly affect the work of
inspectors if cheating occurred or may have occurred. A6. The examiner should use
professional skepticism towards things, between
others, the following:
a. examination of evidence as opposed to other examinations of evidence obtained;
b. information that raises questions about the reliability of documents and responses to
inquiries used as evidence of the investigation;
c. circumstances indicate the existence of fraud and / or impropriety; and
d. conditions allowing the need for additional inspection procedures in addition to the procedures required in the examination guidelines.
Professional Considerations (Ref: Para. 8)
A7. The examiner should use professional judgment in making
decisions on:
a. the subject matter / subject matter information;
b. appropriate criteria;
c. related parties of the investigation;
d. level of confidence;
e. scope of the investigation;
f. the risk of investigation;
g. inspection procedures to be used in relation to the risk of inspection; and
h. materiality.
A8. The examiner should also use professional judgment in
evaluate the adequacy and accuracy of the examination of evidence obtained, and measures
to achieve the overall goal of the examination has been carried out.
A9. The examiner should use professional judgment in making
conclusions based on evidence obtained by examination.
Competence (Ref: Para.13)
A10. Professional competence include education and experience. Competence professionals are not only measured quantitatively how long experience of examination, because it can not accurately describe the type of experience of the examiner. The most important element for the Examiner is maintaining professional skills through a commitment to learning and professional development throughout the life of the examiner.
A11. Investigator assigned to carry out the examination according to the standards
checks should collectively have the competence:
a. educational background, expertise and experience, as well as knowledge of the
inspection standards applicable to the type of examination that is assigned;
b. general knowledge of environmental entities, programs, and activities examined (object
of inspection);
c. skills to communicate clearly and effectively, both orally and in writing; and
d. a skill that requires specialized knowledge in specific areas in accordance with the
examination carried out.
Use of Experts (Ref: Para.16)
A12. The expert can be used to provide advice to the Examiner as well as being part of the team Examiner.
Non-compliance considerations, fraud and impropriety (Ref: Para. 21)
A13. Examining only the interest on the initial indications of fraud
a material impact on opinions or conclusions. Although Examiner discovered early indications of fraud, the Investigator was not authorized to declare fraud has occurred since the term fraud is a legal sphere.
Independence, integrity, and professionalism
The independence (Ref: Para. 7)
A1. BPK need personal attention disorders the independence inspectors. Personal disruption caused by a relationship and personal views may result in the Examining limiting the scope of questions and disclosures or weaken the findings in all its forms. The examiner is responsible to inform the competent authorities in the CPC if it has a private nuisance against independence. Personal interference of individual inspectors, among others:
a. relationship consanguinity upward, downward, or marriage to the second degree with the
management of the entity or program being examined;
b. has a financial interest, directly or indirectly, to any entity or program being examined;
c. never work or provide services to the entity or program being examined within a period
of two (2) years;
d. have a cooperative relationship with the entity or program being examined; and
e. involved directly or indirectly in the object of inspection activities, such as providing
assistance, consulting services, systems development, drafting and / or reviewing the
financial statements of the entity or program being examined.
Integrity (Ref: Para.7) A2.
Integrity among others is manifested in being honest, objective, and firm in applying the
principles, values and decisions. Disruption of the integrity include:
a. requesting and / or receiving money, goods, and / or facilities, either directly or indirectly
from the parties related to the investigation;
b. hinder the implementation of inspection tasks to private interests, a person, and / or class;
c. imposing personal will to the parties under investigation; and
d. change findings or orders to change the inspection findings, opinions, conclusions, and
recommendations examination results that do not fit the facts and / or evidence in the
examination.
Professional Proficiency (Ref: Para. 8)
A3. The examiner should use the professional skills of a careful and thorough
in determining the type of examination to be carried out, determine the scope of the
examination, choosing methodology, determining the type and amount of evidence to be
collected, or in selecting the testing and procedures for conducting the examination, as well as
in the assessment and reporting of test results.
Professional Skepticism (Ref: Para. 8)
A4. The examiner must plan, implement, and report inspection
with an attitude of professional skepticism. Examiner recognizes that certain circumstances can
cause major issues deviate from the criteria. The attitude of professional skepticism means the
examiner makes a critical assessment in mind always questioned the sufficiency and
appropriateness of evidence obtained during the investigation.
A5. The examiner should use professional skepticism in evaluating the risk of
fraud significantly to determine factors or risks that could significantly affect the work of
inspectors if cheating occurred or may have occurred. A6. The examiner should use
professional skepticism towards things, between
others, the following:
a. examination of evidence as opposed to other examinations of evidence obtained;
b. information that raises questions about the reliability of documents and responses to
inquiries used as evidence of the investigation;
c. circumstances indicate the existence of fraud and / or impropriety; and
d. conditions allowing the need for additional inspection procedures in addition to the procedures required in the examination guidelines.
Professional Considerations (Ref: Para. 8)
A7. The examiner should use professional judgment in making
decisions on:
a. the subject matter / subject matter information;
b. appropriate criteria;
c. related parties of the investigation;
d. level of confidence;
e. scope of the investigation;
f. the risk of investigation;
g. inspection procedures to be used in relation to the risk of inspection; and
h. materiality.
A8. The examiner should also use professional judgment in
evaluate the adequacy and accuracy of the examination of evidence obtained, and measures
to achieve the overall goal of the examination has been carried out.
A9. The examiner should use professional judgment in making
conclusions based on evidence obtained by examination.
Competence (Ref: Para.13)
A10. Professional competence include education and experience. Competence professionals are not only measured quantitatively how long experience of examination, because it can not accurately describe the type of experience of the examiner. The most important element for the Examiner is maintaining professional skills through a commitment to learning and professional development throughout the life of the examiner.
A11. Investigator assigned to carry out the examination according to the standards
checks should collectively have the competence:
a. educational background, expertise and experience, as well as knowledge of the
inspection standards applicable to the type of examination that is assigned;
b. general knowledge of environmental entities, programs, and activities examined (object
of inspection);
c. skills to communicate clearly and effectively, both orally and in writing; and
d. a skill that requires specialized knowledge in specific areas in accordance with the
examination carried out.
Use of Experts (Ref: Para.16)
A12. The expert can be used to provide advice to the Examiner as well as being part of the team Examiner.
Non-compliance considerations, fraud and impropriety (Ref: Para. 21)
A13. Examining only the interest on the initial indications of fraud
a material impact on opinions or conclusions. Although Examiner discovered early indications of fraud, the Investigator was not authorized to declare fraud has occurred since the term fraud is a legal sphere.
Communication
Inspection (Ref:
Para. 25)
A14. Examining communicate things that are associated with the inspection process, among other objectives of the investigation, the scope of the examination, the examination time, the examination criteria, the audit findings, and difficulties or constraints encountered during the
examination. PDTT in the form of special investigative examination, the Investigator may limit communication on matters relating to the inspection process.
A14. Examining communicate things that are associated with the inspection process, among other objectives of the investigation, the scope of the examination, the examination time, the examination criteria, the audit findings, and difficulties or constraints encountered during the
examination. PDTT in the form of special investigative examination, the Investigator may limit communication on matters relating to the inspection process.
APPENDIX
III
REGULATION
OF THE AUDIT BOARD OF THE REPUBLIC
OF
INDONESIA NUMBER 1 OF 2017
STATE
FINANCIAL INSPECTION STANDARDS
Standards
EXAMINATION 200
STANDARD
STATEMENT OF EXAMINATION 200
STANDARD
EXAMINATION
PRELIMINARY
Scope
1. The PSP is set
responsibility in carrying out the examination examiner that includes planning,
examination of evidence collection, development of audit findings, and
supervision.
2. Planning relating to responsibility Examining responsibility in connecting the examination topics that will be done by the CPC strategic planning and planning for every assignment inspection.
3. Collection of evidence relating to the responsibilities of Audit in designing and implementing inspection procedures to obtain evidence sufficient and appropriate checks, support an accurate conclusion, according to the characteristics to be possessed by the examination of evidence in an investigation.
4. Development of inspection findings related to the responsibility of inspectors in developing the audit findings based on evidence obtained by examination.
5. Supervising Examiner relating to responsibility in providing direction and guidance to the examiner during the examination to ensure the achievement of the purpose of inspection and compliance with audit standards.
Effective date
6. The PSP is valid and binding legal effect from the date of promulgation.
AIM
7. Interest Examiner in applying this standard is to:
a. planned quality checks to be carried out efficiently and effectively; and
b. designing and implementing inspection procedures to obtain sufficient appropriate evidence.
DEFINITION
8. For the purpose of this standard, the below terms mean as follows:
a. Strategic planning is the process of formulating the vision and mission that prepared the CPC
every period of 5 (five) year and contained in the Strategic Plan (Plan). Strategic Plan contains
the vision and mission of the CPC will be achieved within a period of five (5) years, and shall
include the examination of policies and strategies is a priority.
b. Assignment planning is a process that involves the determination of the overall inspection
strategy and development plan of the examination.
c. Internal control is a process designed, implemented, and monitored by the management and
personnel of the entity that is responsible for the governance of the entity to provide
reasonable assurance of achieving the entity's objectives.
d. Risk inspection is the risk of the possibility that the findings, conclusions and / or
recommendations Examiner is incorrect or incomplete, as a result of factors such as
insufficient evidence and / or improper, inspection procedures were inadequate, or
omission, deliberate or misleading information.
e. The purpose connected with the examination of the implementation of an inspection.
Specifically, the purpose of the examination will determine the type of examination.
1) The purpose of the audit is to obtain reasonable assurance so that the examiner is able
to provide an opinion that the financial statements present fairly, in all material
respects, of compliance with accounting standards, the adequacy of disclosure,
compliance with laws and regulations, and the effectiveness of internal control
systems;
2) The purpose of the examination is to test the performance and assessing the aspects of economy, efficiency and / or effectiveness, as well as other performance aspects on a subject matter being examined with a view to provide recommendations that can be pushed toward improvement;
3) Interest PDTT in the form of compliance checks is to assess whether the subject matter is checked accordingly (submissive) with the provisions of the legislation;
4) Interest investigative PDTT in the form of checks is to uncover any indication of loss of country / region and / or criminal elements.
f. The scope of the examination is a clear statement of focused, comprehensive, and limit checks.
g. Criteria are the benchmarks used in examining and assessing the subject matter, in this case the
information disclosed in financial management and accountability the state, including
benchmarks presentation and disclosure of relevant.
h. Pick-test is the selection of some of the elements in the population as a basis to draw conclusions
on the overall population.
i. Population is the data that is the source of the sample to be selected, in which the examiner
intends to draw conclusions from the overall data.
j. Pick-test risk is the risk that the Examiner conclusion based on the selected sample is different
from the conclusion if the same audit procedures applied to the whole population.
k. Supervision is an activity that includes giving direction and guidance to the examiner during the
examination to ensure the achievement of the purpose of inspection and compliance checks to
continue to receive the latest information about significant problems encountered, carry
review for the work performed, and providing training ( training) and guidance ( mentoring) effective in the implementation of quality control.
l. Business continuity ( going concern) is the assumption that an entity is deemed to survive in the
duties and functions or business for the future can be predicted.
An early indication of fraud are signs that indicate the possibility of fraud.
CONDITIONS
plan
9. BPK and the examiner must plan the examination as well as possible.
10. CPCs should make strategic planning for the implementation of inspection tasks and meet
stakeholder expectations.
BPK relationship with Strategic Planning
11. CPCs should be guided by the Strategic Plan of the CPC in the annual inspection plan. In an
examination of performance and PDTT, examiner must determine the subject matter to be
examined. The examiner must specify the factors on which to base consideration in the
determination of the subject matter. (Ref: Para. A1-A2)
planning Assignment
12. The examiner must state clearly the purpose of the examination of the information subject matter or subject matter to be examined.
13. The examiner must ensure clarity every assignment inspection performed. (Ref: Para. A3)
14. The examiner must acquire an understanding of the entity and / or subject matter / subject
matter examined information required to identify the problem, determine materiality, risk, types
and sources of evidence, as well as auditabilitas. (Ref: Para. A4-A6)
15. The examiner should obtain a sufficient understanding of internal control over the use of professional judgment. (Ref: Para. A7-A9)
16. The examiner must assess and respond to risk inspection using professional judgment. (Ref:
Para. A10-A11)
17. The examiner must identify and measure the material risks as a result of fraud.
18. The examiner must update the risk assessment and response to the whole process of
inspection using professional judgment.
19. The Examiner must design adequate procedures to obtain adequate and appropriate proof of examination of identified fraud risk.
20. The examiner shall establish appropriate criteria as the basis for assessing the subject matter or subject matter information being examined. (Ref: Para. A12-A15)
21. The examiner must consider the materiality of the whole process of inspection using professional
judgment. (Ref: Para. A16-A17)
22. The examiner must update the assessment of the materiality of the whole process of
examination based on risk assessment using professional judgment.
23. In the financial checks, The examiner must consider
business continuity ( going concern) and events that occurred between the date of the financial statements and the date of LHP. (Ref: Para. A18)
24. The examiner must update the audit plan as necessary during the inspection process.
Obtaining evidence
25. The examiner should design and implement appropriate audit procedures to obtain evidence
sufficient and appropriate inspection. (Ref: Para. A19)
26. The examiner must implement procedures that have been designed to obtain evidence sufficient
checks and worthy of fraud risks that have been identified.
27. The examiner must determine the overall response if it is found early indications of fraud /
indications of fraud in the examination.
28. The examiner must consider the sufficiency and appropriateness of evidence in identifying the
sources of potential data derived from the audited entity, the results of the analysis Examiner, or
other parties. (Ref: Para. A19)
29. The examiner must deepening if the acquisition of evidence, the Investigator suspect that the
document was not authentic or the contents of the document have been modified but not
communicated to the Examiner.
30. The Examiner must modify the inspection procedure required if proof of Examination obtained from one source is contracditory or inconsistent with evidence obtained from another source or The Examiner has doubts about the reliability of the information that will be used as proof of examination.
31. The examiner can obtain evidence by using pick-test inspection to provide an adequate basis for
the Examiner to draw conclusions.
32. Throughout the process, the examiner must Me- review adequacy and the accuracy of the evidence and relate it to the purposes of the investigation and responded to analyze the need to modify the inspection procedures. (Ref. Para. A20) findings development
33. The examiner should develop inspection findings if it finds a mismatch between the conditions
and criteria.
34. The examiner must consider the findings element consisting of the conditions, the criteria, as a
result, and because in developing the inspection findings. However, the elements needed for an
examination findings depend on the objectives of the investigation. (Ref: Para. A21)
35. The examiner can make the inspection findings to meet the purposes of the investigation in
order to draw conclusions and / or recommendations. (Ref: Para. A22)
36. If discovered early indications of fraud, the Investigator must follow the initial indications of fraud in accordance with the provisions. (Ref: Para. A23)
supervision
37. The examiner should be supervised properly. (Ref: Para. A24-A27)
EXPLANATION OF APPLICATION AND OTHER MATERIALS
BPK relationship with Strategic Planning ( Ref: Para. 11) A1. Understanding of the Strategic Plan
is required to provide strategic direction in preparation of the annual audit plan, determining the assignment expectations, and objectives of the investigation.
A2. Factors on which the judgment determining the subject matter between Another community expectations and materiality of a subject matter.
planning Assignment
A3. The information needs to be widely understood among other major issues / information points that will be examined, the scope and purpose of inspection, access to the required data, a report will be generated, the inspection process, the parties can be reached during the inspection, and the roles
and responsibilities of all parties related to the inspection. (Ref: Para. 13)
A4. An understanding of the entity and / or subject matter / subject matter information is checked
can be obtained from the knowledge that has been owned Examiner over the entity and / or subject matter / subject matter information being examined and the results of the information collection during the examination. (Ref: Para. 14)
A5. An understanding of the entity and / or subject matter / subject matter information is checked
can be obtained by considering the results of the previous inspection, including the understanding of the results of internal control, risk assessment, as well as the inspection findings. (Ref: Para. 14)
A6. An understanding of the entity and / or subject matter / subject matter appropriate information
examination Examiner relies on knowledge of the environment control. Understanding of the entity controlling the examiner on the environment is important, because the control environment is the basis for the internal control system to achieve the entity's objectives. (Ref: Para. 14)
A7. An understanding of internal control includes the condition of internal control which is relevant both in time and substance with the investigation or that are material to the subject matter / subject matter information. (Ref: Para. 15) A8. An understanding of the entity and its environment and an understanding of internal control relevant to the investigation or which is material to the subject matter / subject matter information, will be associated with the risk assessment process, including risk
assessment of fraud and impropriety. Effectiveness of internal control relevant to the investigation may affect the risk of inspection. Further, the Examiner can modify the nature, timing or scope of the examination procedure in accordance with the Audit assessment on internal control and the results of testing of internal control. (Ref: Para. 15)
A9. Professional judgment is used to determine whether a control individually or jointly with othersis relevant to the examination or material nature of the subject matter / subject matter information. (Ref: Para. 15)
A10. Assessment and response is done by considering the inherent risk, control risk, and detection risk associated with the entity and subject matter / subject matter information being examined. (Ref: Para. 16)
A11. Examining get an understanding of the internal control system relevant to the investigation, including the management of risks associated with the entities examined as well as the adequacy of the risk management in support of the achievement of organizational goals. When obtaining an understanding of relevant controls with the examination, the examiner should evaluate the design of those controls and determine whether the control is carried out. (Ref: Para. 16)
A12. Determination of criteria is affected by the subject matter / subject matter information checked and objectives of the investigation. The criteria in the form of a formal audit, the accounting standard which is a financial reporting framework used by compilers of financial statements. (Ref: Para. 20)
A13. In the examination of performance, if there are no formal criteria source accordance with the design objectives of the investigation, the Investigator may develop inspection criteria based on specific source and expressed in a transparent manner. (Ref: Para. 20)
A14. In an examination of performance and PDTT with form compliance checks, if the examiner identifies several sources of conflict between the criteria used, the examiner must analyze the consequences of any such conflict, and responded by doing the following:
a. modify the purposes of the investigation or the subject matter / subject matter information to be checked;
b. decided not to make an assessment of the subject matter / subject matter information; or
c. involving experts to obtain their views on the conflict of several sources of criteria. (Ref.
Para. 20)
A15. If based on the professional judgment Examiner decided to selecting one of the sources of criteria, the Investigator must disclose their opposition sources criteria and reasons for selecting certain criteria in LHP source. The examiner can give consideration to the government on the issue of conflict of criteria resources. (Ref: Para. 20)
A16. Something may be judged material if knowledge of it might affect your decision-making by users of LHP. Materiality includes quantitative and qualitative aspects. Materiality considerations influence the decisions concerning the nature, timing and extent of examination procedures and evaluation of test results. PDTT special examination in the form of performance and compliance checks, are also considered in determining the materiality of topics and inspection criteria. (Ref: Para. 21)
A17. Things are becoming professional judgment in determining the level of materiality include LHP user needs, for example the attention of stakeholders, public interest, and the impact on the community; innate characteristics in a case or a group of things; the context of the occurrence of a case; and statutory requirements. (Ref: Para. 21)
A18. The examiner must obtain evidence sufficient appropriate examination to determine the existence of events or conditions that may cast doubt significantly to the ability of the audited entity related to business continuity ( going concern) as well as events occurring between the date of the financial statements and the date of LHP that require adjustment or disclosure in the financial statements that have been identified. (Ref: Para. 23)
Obtaining evidence
A19. The examiner can obtain data and information by, among others observation, interviews, surveys, and measurements. In determining the method of data acquisition, the Investigator uses professional judgment. If necessary, the Investigator may use experts to help in the design methodology of obtaining data and information. (Ref: Para. 25, 28)
A20. The adequacy of the evidence based on the belief that the evidence Examiner produce reliable conclusions. (Ref: Para. 32)
findings development
A21. The element is called a complete inspection findings throughout the examination purpose
have been met. The audit findings are clearly associated with the element of interest examination findings. (Ref: Para. 34)
A22. If there is ineffective or non-compliance of the internal control, fraud, and / or misbehavior in the material but does not directly support the objectives of the investigation, the Investigator should discuss it in stages to decide whether to do a special inspection related or not. (Ref: Para. 35)
A23. The Examiner found the early indications of fraud, the Investigator may follow up by proposing PDTT in the form of investigative examination. (Ref: Para. 36)
Supervision (Ref: Para. 37)
A24. Supervision conducted in phases and is intended to ensure achievement of objectives and the achievement of quality inspection checks in accordance with inspection standards.
A25. Nature and extent of supervision, as well as review Examining the results of work may varies depending on several factors, such as the number of personnel in the Audit team, the importance of the inspection work, and experience Examiner.
A26. Supervision includes the following matters:
a. monitor the progress of the investigation;
b. consider the competence and ability of each team member Investigators, including the
sufficiency of time allotted to carry out his work, his understanding of instructions given,
and the suitability of execution of the work with an approach that has been planned;
c. The examiner directs all significant matters arising during the examination, considering the
significance of and modify the approaches that have been planned properly; and
d. identify the things that need to be consulted or considered by members of the team more
experienced examiner during the examination.
A27. Person who supervises also facilitate mentoring in Audit team during the inspection process.
2. Planning relating to responsibility Examining responsibility in connecting the examination topics that will be done by the CPC strategic planning and planning for every assignment inspection.
3. Collection of evidence relating to the responsibilities of Audit in designing and implementing inspection procedures to obtain evidence sufficient and appropriate checks, support an accurate conclusion, according to the characteristics to be possessed by the examination of evidence in an investigation.
4. Development of inspection findings related to the responsibility of inspectors in developing the audit findings based on evidence obtained by examination.
5. Supervising Examiner relating to responsibility in providing direction and guidance to the examiner during the examination to ensure the achievement of the purpose of inspection and compliance with audit standards.
Effective date
6. The PSP is valid and binding legal effect from the date of promulgation.
AIM
7. Interest Examiner in applying this standard is to:
a. planned quality checks to be carried out efficiently and effectively; and
b. designing and implementing inspection procedures to obtain sufficient appropriate evidence.
DEFINITION
8. For the purpose of this standard, the below terms mean as follows:
a. Strategic planning is the process of formulating the vision and mission that prepared the CPC
every period of 5 (five) year and contained in the Strategic Plan (Plan). Strategic Plan contains
the vision and mission of the CPC will be achieved within a period of five (5) years, and shall
include the examination of policies and strategies is a priority.
b. Assignment planning is a process that involves the determination of the overall inspection
strategy and development plan of the examination.
c. Internal control is a process designed, implemented, and monitored by the management and
personnel of the entity that is responsible for the governance of the entity to provide
reasonable assurance of achieving the entity's objectives.
d. Risk inspection is the risk of the possibility that the findings, conclusions and / or
recommendations Examiner is incorrect or incomplete, as a result of factors such as
insufficient evidence and / or improper, inspection procedures were inadequate, or
omission, deliberate or misleading information.
e. The purpose connected with the examination of the implementation of an inspection.
Specifically, the purpose of the examination will determine the type of examination.
1) The purpose of the audit is to obtain reasonable assurance so that the examiner is able
to provide an opinion that the financial statements present fairly, in all material
respects, of compliance with accounting standards, the adequacy of disclosure,
compliance with laws and regulations, and the effectiveness of internal control
systems;
2) The purpose of the examination is to test the performance and assessing the aspects of economy, efficiency and / or effectiveness, as well as other performance aspects on a subject matter being examined with a view to provide recommendations that can be pushed toward improvement;
3) Interest PDTT in the form of compliance checks is to assess whether the subject matter is checked accordingly (submissive) with the provisions of the legislation;
4) Interest investigative PDTT in the form of checks is to uncover any indication of loss of country / region and / or criminal elements.
f. The scope of the examination is a clear statement of focused, comprehensive, and limit checks.
g. Criteria are the benchmarks used in examining and assessing the subject matter, in this case the
information disclosed in financial management and accountability the state, including
benchmarks presentation and disclosure of relevant.
h. Pick-test is the selection of some of the elements in the population as a basis to draw conclusions
on the overall population.
i. Population is the data that is the source of the sample to be selected, in which the examiner
intends to draw conclusions from the overall data.
j. Pick-test risk is the risk that the Examiner conclusion based on the selected sample is different
from the conclusion if the same audit procedures applied to the whole population.
k. Supervision is an activity that includes giving direction and guidance to the examiner during the
examination to ensure the achievement of the purpose of inspection and compliance checks to
continue to receive the latest information about significant problems encountered, carry
review for the work performed, and providing training ( training) and guidance ( mentoring) effective in the implementation of quality control.
l. Business continuity ( going concern) is the assumption that an entity is deemed to survive in the
duties and functions or business for the future can be predicted.
An early indication of fraud are signs that indicate the possibility of fraud.
CONDITIONS
plan
9. BPK and the examiner must plan the examination as well as possible.
10. CPCs should make strategic planning for the implementation of inspection tasks and meet
stakeholder expectations.
BPK relationship with Strategic Planning
11. CPCs should be guided by the Strategic Plan of the CPC in the annual inspection plan. In an
examination of performance and PDTT, examiner must determine the subject matter to be
examined. The examiner must specify the factors on which to base consideration in the
determination of the subject matter. (Ref: Para. A1-A2)
planning Assignment
12. The examiner must state clearly the purpose of the examination of the information subject matter or subject matter to be examined.
13. The examiner must ensure clarity every assignment inspection performed. (Ref: Para. A3)
14. The examiner must acquire an understanding of the entity and / or subject matter / subject
matter examined information required to identify the problem, determine materiality, risk, types
and sources of evidence, as well as auditabilitas. (Ref: Para. A4-A6)
15. The examiner should obtain a sufficient understanding of internal control over the use of professional judgment. (Ref: Para. A7-A9)
16. The examiner must assess and respond to risk inspection using professional judgment. (Ref:
Para. A10-A11)
17. The examiner must identify and measure the material risks as a result of fraud.
18. The examiner must update the risk assessment and response to the whole process of
inspection using professional judgment.
19. The Examiner must design adequate procedures to obtain adequate and appropriate proof of examination of identified fraud risk.
20. The examiner shall establish appropriate criteria as the basis for assessing the subject matter or subject matter information being examined. (Ref: Para. A12-A15)
21. The examiner must consider the materiality of the whole process of inspection using professional
judgment. (Ref: Para. A16-A17)
22. The examiner must update the assessment of the materiality of the whole process of
examination based on risk assessment using professional judgment.
23. In the financial checks, The examiner must consider
business continuity ( going concern) and events that occurred between the date of the financial statements and the date of LHP. (Ref: Para. A18)
24. The examiner must update the audit plan as necessary during the inspection process.
Obtaining evidence
25. The examiner should design and implement appropriate audit procedures to obtain evidence
sufficient and appropriate inspection. (Ref: Para. A19)
26. The examiner must implement procedures that have been designed to obtain evidence sufficient
checks and worthy of fraud risks that have been identified.
27. The examiner must determine the overall response if it is found early indications of fraud /
indications of fraud in the examination.
28. The examiner must consider the sufficiency and appropriateness of evidence in identifying the
sources of potential data derived from the audited entity, the results of the analysis Examiner, or
other parties. (Ref: Para. A19)
29. The examiner must deepening if the acquisition of evidence, the Investigator suspect that the
document was not authentic or the contents of the document have been modified but not
communicated to the Examiner.
30. The Examiner must modify the inspection procedure required if proof of Examination obtained from one source is contracditory or inconsistent with evidence obtained from another source or The Examiner has doubts about the reliability of the information that will be used as proof of examination.
31. The examiner can obtain evidence by using pick-test inspection to provide an adequate basis for
the Examiner to draw conclusions.
32. Throughout the process, the examiner must Me- review adequacy and the accuracy of the evidence and relate it to the purposes of the investigation and responded to analyze the need to modify the inspection procedures. (Ref. Para. A20) findings development
33. The examiner should develop inspection findings if it finds a mismatch between the conditions
and criteria.
34. The examiner must consider the findings element consisting of the conditions, the criteria, as a
result, and because in developing the inspection findings. However, the elements needed for an
examination findings depend on the objectives of the investigation. (Ref: Para. A21)
35. The examiner can make the inspection findings to meet the purposes of the investigation in
order to draw conclusions and / or recommendations. (Ref: Para. A22)
36. If discovered early indications of fraud, the Investigator must follow the initial indications of fraud in accordance with the provisions. (Ref: Para. A23)
supervision
37. The examiner should be supervised properly. (Ref: Para. A24-A27)
EXPLANATION OF APPLICATION AND OTHER MATERIALS
BPK relationship with Strategic Planning ( Ref: Para. 11) A1. Understanding of the Strategic Plan
is required to provide strategic direction in preparation of the annual audit plan, determining the assignment expectations, and objectives of the investigation.
A2. Factors on which the judgment determining the subject matter between Another community expectations and materiality of a subject matter.
planning Assignment
A3. The information needs to be widely understood among other major issues / information points that will be examined, the scope and purpose of inspection, access to the required data, a report will be generated, the inspection process, the parties can be reached during the inspection, and the roles
and responsibilities of all parties related to the inspection. (Ref: Para. 13)
A4. An understanding of the entity and / or subject matter / subject matter information is checked
can be obtained from the knowledge that has been owned Examiner over the entity and / or subject matter / subject matter information being examined and the results of the information collection during the examination. (Ref: Para. 14)
A5. An understanding of the entity and / or subject matter / subject matter information is checked
can be obtained by considering the results of the previous inspection, including the understanding of the results of internal control, risk assessment, as well as the inspection findings. (Ref: Para. 14)
A6. An understanding of the entity and / or subject matter / subject matter appropriate information
examination Examiner relies on knowledge of the environment control. Understanding of the entity controlling the examiner on the environment is important, because the control environment is the basis for the internal control system to achieve the entity's objectives. (Ref: Para. 14)
A7. An understanding of internal control includes the condition of internal control which is relevant both in time and substance with the investigation or that are material to the subject matter / subject matter information. (Ref: Para. 15) A8. An understanding of the entity and its environment and an understanding of internal control relevant to the investigation or which is material to the subject matter / subject matter information, will be associated with the risk assessment process, including risk
assessment of fraud and impropriety. Effectiveness of internal control relevant to the investigation may affect the risk of inspection. Further, the Examiner can modify the nature, timing or scope of the examination procedure in accordance with the Audit assessment on internal control and the results of testing of internal control. (Ref: Para. 15)
A9. Professional judgment is used to determine whether a control individually or jointly with othersis relevant to the examination or material nature of the subject matter / subject matter information. (Ref: Para. 15)
A10. Assessment and response is done by considering the inherent risk, control risk, and detection risk associated with the entity and subject matter / subject matter information being examined. (Ref: Para. 16)
A11. Examining get an understanding of the internal control system relevant to the investigation, including the management of risks associated with the entities examined as well as the adequacy of the risk management in support of the achievement of organizational goals. When obtaining an understanding of relevant controls with the examination, the examiner should evaluate the design of those controls and determine whether the control is carried out. (Ref: Para. 16)
A12. Determination of criteria is affected by the subject matter / subject matter information checked and objectives of the investigation. The criteria in the form of a formal audit, the accounting standard which is a financial reporting framework used by compilers of financial statements. (Ref: Para. 20)
A13. In the examination of performance, if there are no formal criteria source accordance with the design objectives of the investigation, the Investigator may develop inspection criteria based on specific source and expressed in a transparent manner. (Ref: Para. 20)
A14. In an examination of performance and PDTT with form compliance checks, if the examiner identifies several sources of conflict between the criteria used, the examiner must analyze the consequences of any such conflict, and responded by doing the following:
a. modify the purposes of the investigation or the subject matter / subject matter information to be checked;
b. decided not to make an assessment of the subject matter / subject matter information; or
c. involving experts to obtain their views on the conflict of several sources of criteria. (Ref.
Para. 20)
A15. If based on the professional judgment Examiner decided to selecting one of the sources of criteria, the Investigator must disclose their opposition sources criteria and reasons for selecting certain criteria in LHP source. The examiner can give consideration to the government on the issue of conflict of criteria resources. (Ref: Para. 20)
A16. Something may be judged material if knowledge of it might affect your decision-making by users of LHP. Materiality includes quantitative and qualitative aspects. Materiality considerations influence the decisions concerning the nature, timing and extent of examination procedures and evaluation of test results. PDTT special examination in the form of performance and compliance checks, are also considered in determining the materiality of topics and inspection criteria. (Ref: Para. 21)
A17. Things are becoming professional judgment in determining the level of materiality include LHP user needs, for example the attention of stakeholders, public interest, and the impact on the community; innate characteristics in a case or a group of things; the context of the occurrence of a case; and statutory requirements. (Ref: Para. 21)
A18. The examiner must obtain evidence sufficient appropriate examination to determine the existence of events or conditions that may cast doubt significantly to the ability of the audited entity related to business continuity ( going concern) as well as events occurring between the date of the financial statements and the date of LHP that require adjustment or disclosure in the financial statements that have been identified. (Ref: Para. 23)
Obtaining evidence
A19. The examiner can obtain data and information by, among others observation, interviews, surveys, and measurements. In determining the method of data acquisition, the Investigator uses professional judgment. If necessary, the Investigator may use experts to help in the design methodology of obtaining data and information. (Ref: Para. 25, 28)
A20. The adequacy of the evidence based on the belief that the evidence Examiner produce reliable conclusions. (Ref: Para. 32)
findings development
A21. The element is called a complete inspection findings throughout the examination purpose
have been met. The audit findings are clearly associated with the element of interest examination findings. (Ref: Para. 34)
A22. If there is ineffective or non-compliance of the internal control, fraud, and / or misbehavior in the material but does not directly support the objectives of the investigation, the Investigator should discuss it in stages to decide whether to do a special inspection related or not. (Ref: Para. 35)
A23. The Examiner found the early indications of fraud, the Investigator may follow up by proposing PDTT in the form of investigative examination. (Ref: Para. 36)
Supervision (Ref: Para. 37)
A24. Supervision conducted in phases and is intended to ensure achievement of objectives and the achievement of quality inspection checks in accordance with inspection standards.
A25. Nature and extent of supervision, as well as review Examining the results of work may varies depending on several factors, such as the number of personnel in the Audit team, the importance of the inspection work, and experience Examiner.
A26. Supervision includes the following matters:
a. monitor the progress of the investigation;
b. consider the competence and ability of each team member Investigators, including the
sufficiency of time allotted to carry out his work, his understanding of instructions given,
and the suitability of execution of the work with an approach that has been planned;
c. The examiner directs all significant matters arising during the examination, considering the
significance of and modify the approaches that have been planned properly; and
d. identify the things that need to be consulted or considered by members of the team more
experienced examiner during the examination.
A27. Person who supervises also facilitate mentoring in Audit team during the inspection process.
APPENDIX IV
REGULATION OF THE AUDIT BOARD OF THE REPUBLIC
OF INDONESIA NUMBER 1 OF 2017
STATE FINANCIAL INSPECTION STANDARDS
Standards EXAMINATION 300
STANDARD
STATEMENT OF EXAMINATION 300
EXAMINATION
REPORTING STANDARDS
PRELIMINARY
Scope
1. The PSP is set obligations LHP Examiner in preparing for financial audit, performance audit, and
PDTT.
2. LHP serves to: (1) communicate the examination results to the authorities by the legislation in
force; (2) to avoid any misunderstanding on the results of the investigation; (3) make the results
of the examination as a material to take remedial action by the responsible party; and (4)facilitate follow-up monitoring to determine the effect of the corrective actions that should be done.
Effective date
3. The PSP is valid and binding legal effect from the date of promulgation.
AIM
4. Interest Examiner in implementing reporting standards are:
a. formulate conclusions based on an evaluation of the results of the examination of evidence
obtained; and
b. communicate the examination results to the relevant parties.
DEFINITION
5. The terms in this standard means as follows:
a. LHP is a written report of the inspection process that contains the results of an analysis of the
testing of evidence obtained during the inspection.
b. LHP users are those who use LHP BPK, among other representative institutions, governments,
and other parties who have an interest against LHP.
c. The conclusion is a logical interpretation of the subject matter / subject matter information based on the test results of evidence and not just a summary of the findings.
d. Recommendations are suggestions from the Examining based on results of the examination,
which is addressed to people and / or entities which are authorized to act and / or repair.
CONDITIONS
Must Generating Reports
6. The examiner must prepare a written LHP to communicate the results of the examination.
7. The examiner must prepare LHP timely, complete, accurate, objective, convincing, clear, and
concise. (Ref: Para. A1- A7)
Elements LHP
8. LHP must meet the elements of a report in accordance with the type of examination. LHP element among others:
a. A statement that the inspection carried out in accordance with auditing standards;
b. The objectives, scope, methodology;
c. Conclusion;
d. The findings of the investigation;
e. Recommendations examination;
f. Responses responsible party; and
g. Signing LHP.
The statement that the examination Executed In accordance with Inspection Standards
9. The inspector must state that the inspection is carried out in accordance with the inspection standard. in the event that the Examiner is unable to implement the inspection standard due to material scoe restriction, this must be stated in the report.
Objectives, Scope, Methodology
10. The examiner shall contain the objectives, scope, and methodology of the examination clearly in the LHP. Such information is important for users of LHP in order to understand the purpose and type of examination, as well as provide a reasonable perspective on what was reported. (Ref: Para. A8-A10)
Conclusion
11. The examiner should be an overall summary of the results of the examination. The conclusion is the answer to achieving the objectives of the investigation. (Ref: Para. A11-A12)
12. The conclusion must be stated clearly and convincingly. The strength of the conclusions determined by convincing evidence and supported by appropriate methodology.
Examination findings
13. The examiner must disclose the findings of the LHP if there is a mismatch between the condition
of the criteria. (Ref: Para. A13)
14. The audit findings that contains an early indication of fraud presented in the LHP without
explaining in detail the alleged fraud. But his explanation is more focused Examining the impact
of these findings on the subject matter / subject matter information to the purpose of inspection.
Recommended Examination
15. Recommendations checks should be constructive and useful to correct the weaknesses found in
the examination. (Ref: Para. A14-A15)
16. The Examiner must provide recommendation on performance check. in examination other than performance checks, if the Examiner can adequately develop audit findings, the Examiner can make recommendation. especially in PDTT in the form of investigative examination, the Examiner does not provide recommendation.
Responses Responsible Party (Ref: Para. A16)
17. The examiner must obtain a written response to the results of the examination of the responsible
party. However, in relation to the confidentiality of information, in PDTT in the form of an
investigative examination, examiner not request a response.
18. The examiner must load response of government officials responsible for the findings,
conclusions, and recommendations on lLHP examiner.
Signing LHP
19. LHP signed by the Chairman, Vice Chairman, or members of BPK. LHP signing authority can be
delegated to a responsible person who has the competency examination.
Reporting of Confidential Information
20. If certain information is prohibited disclosed to the public, LHP must disclose the nature of the
prohibited information disclosed and provisions prohibiting such disclosure. Consideration
examiner regarding non-disclosure of certain information must be based on legislation.
Publishing and Distribution Report
21. LHP BPK must submit timely to the legislature, the responsible party, and other parties who are
authorized to receive LHP accordance with the provisions of the legislation.
22. In the case being examined is the distribution of confidential information can be limited LHP.
Monitoring Follow-up Audit
24. CPCs periodically monitor the follow-up results of the examination and submit the results of the
monitoring to the representative bodies and the responsible party. The purpose of monitoring the
follow-up examination results are improving the effectiveness of reporting test results and helps
organizations and government representatives in improving governance.
EXPLANATION OF APPLICATION AND OTHER MATERIALS
Must Generating Reports (Ref: Para. 7)
On time
A1. LHP must be timely so that useful information conveyed
maximum. Reports created with care but delivered too late, the value to be less for users of LHP. Therefore, the examiner must plan the publication of the report as necessary and conduct the inspection with this premise.
Complete
A2. LHP must complete load all the information of the evidence needed to meet the objectives of the investigation. LHP also must present a sufficiently detailed information needed in order to provide an adequate understanding for users on case examined, the findings and conclusions of the examiner. accurate
A3. LHP must be accurate in presenting information, supported by sufficient evidence
and right. An accurate report will provide assurance to users of LHP that are reported to have
credibility and reliable. One of inaccuracies in the LHP may cast doubt on the reliability of the
entire report and can divert the user's attention from the substance of the report LHP. If there
is data that can affect the conclusion that the examination can not be tested further by the
examiner, examiner must clearly show in the LHP.
objective
A4. LHP must be objective. The examiner must consider the following matters:
a. LHP examiner must present a balanced and impartial manner; and
b. The examiner must present LHP according to the facts found in the field.
reassure
A5. LHP must be assured. To be sure, LHP should present relationship Among logical examination objectives, criteria, findings, conclusions, and recommendations (if any). The information presented should be enough to convince users to recognize the validity of the report findings and benefits of implementing the recommendations. Report prepared in this manner can help the party responsible for focusing in the improvement according to the recommendations given.
Clear
A6. LHP should be clear that is easy to read and understand. The examiner must write report with clear language, not ambiguous, as simple as possible, and as far as possible avoid the use of technical terms. The examiner also must establish the logical LHP to provide clarity and understanding for the LHP.
concise
A7. LHP must be concise that does not contain information that is not necessary or not in accordance with the objectives of the investigation. The report presents information that is inadequate or contains things that are not relevant will have an impact on the reader misunderstanding on information LHP.
Elements LHP
Objectives, Scope, Methodology (Ref: Para.10)
A8. Objective examination revealed it to be achieved on the examination
Scope
1. The PSP is set obligations LHP Examiner in preparing for financial audit, performance audit, and
PDTT.
2. LHP serves to: (1) communicate the examination results to the authorities by the legislation in
force; (2) to avoid any misunderstanding on the results of the investigation; (3) make the results
of the examination as a material to take remedial action by the responsible party; and (4)facilitate follow-up monitoring to determine the effect of the corrective actions that should be done.
Effective date
3. The PSP is valid and binding legal effect from the date of promulgation.
AIM
4. Interest Examiner in implementing reporting standards are:
a. formulate conclusions based on an evaluation of the results of the examination of evidence
obtained; and
b. communicate the examination results to the relevant parties.
DEFINITION
5. The terms in this standard means as follows:
a. LHP is a written report of the inspection process that contains the results of an analysis of the
testing of evidence obtained during the inspection.
b. LHP users are those who use LHP BPK, among other representative institutions, governments,
and other parties who have an interest against LHP.
c. The conclusion is a logical interpretation of the subject matter / subject matter information based on the test results of evidence and not just a summary of the findings.
d. Recommendations are suggestions from the Examining based on results of the examination,
which is addressed to people and / or entities which are authorized to act and / or repair.
CONDITIONS
Must Generating Reports
6. The examiner must prepare a written LHP to communicate the results of the examination.
7. The examiner must prepare LHP timely, complete, accurate, objective, convincing, clear, and
concise. (Ref: Para. A1- A7)
Elements LHP
8. LHP must meet the elements of a report in accordance with the type of examination. LHP element among others:
a. A statement that the inspection carried out in accordance with auditing standards;
b. The objectives, scope, methodology;
c. Conclusion;
d. The findings of the investigation;
e. Recommendations examination;
f. Responses responsible party; and
g. Signing LHP.
The statement that the examination Executed In accordance with Inspection Standards
9. The inspector must state that the inspection is carried out in accordance with the inspection standard. in the event that the Examiner is unable to implement the inspection standard due to material scoe restriction, this must be stated in the report.
Objectives, Scope, Methodology
10. The examiner shall contain the objectives, scope, and methodology of the examination clearly in the LHP. Such information is important for users of LHP in order to understand the purpose and type of examination, as well as provide a reasonable perspective on what was reported. (Ref: Para. A8-A10)
Conclusion
11. The examiner should be an overall summary of the results of the examination. The conclusion is the answer to achieving the objectives of the investigation. (Ref: Para. A11-A12)
12. The conclusion must be stated clearly and convincingly. The strength of the conclusions determined by convincing evidence and supported by appropriate methodology.
Examination findings
13. The examiner must disclose the findings of the LHP if there is a mismatch between the condition
of the criteria. (Ref: Para. A13)
14. The audit findings that contains an early indication of fraud presented in the LHP without
explaining in detail the alleged fraud. But his explanation is more focused Examining the impact
of these findings on the subject matter / subject matter information to the purpose of inspection.
Recommended Examination
15. Recommendations checks should be constructive and useful to correct the weaknesses found in
the examination. (Ref: Para. A14-A15)
16. The Examiner must provide recommendation on performance check. in examination other than performance checks, if the Examiner can adequately develop audit findings, the Examiner can make recommendation. especially in PDTT in the form of investigative examination, the Examiner does not provide recommendation.
Responses Responsible Party (Ref: Para. A16)
17. The examiner must obtain a written response to the results of the examination of the responsible
party. However, in relation to the confidentiality of information, in PDTT in the form of an
investigative examination, examiner not request a response.
18. The examiner must load response of government officials responsible for the findings,
conclusions, and recommendations on lLHP examiner.
Signing LHP
19. LHP signed by the Chairman, Vice Chairman, or members of BPK. LHP signing authority can be
delegated to a responsible person who has the competency examination.
Reporting of Confidential Information
20. If certain information is prohibited disclosed to the public, LHP must disclose the nature of the
prohibited information disclosed and provisions prohibiting such disclosure. Consideration
examiner regarding non-disclosure of certain information must be based on legislation.
Publishing and Distribution Report
21. LHP BPK must submit timely to the legislature, the responsible party, and other parties who are
authorized to receive LHP accordance with the provisions of the legislation.
22. In the case being examined is the distribution of confidential information can be limited LHP.
Monitoring Follow-up Audit
24. CPCs periodically monitor the follow-up results of the examination and submit the results of the
monitoring to the representative bodies and the responsible party. The purpose of monitoring the
follow-up examination results are improving the effectiveness of reporting test results and helps
organizations and government representatives in improving governance.
EXPLANATION OF APPLICATION AND OTHER MATERIALS
Must Generating Reports (Ref: Para. 7)
On time
A1. LHP must be timely so that useful information conveyed
maximum. Reports created with care but delivered too late, the value to be less for users of LHP. Therefore, the examiner must plan the publication of the report as necessary and conduct the inspection with this premise.
Complete
A2. LHP must complete load all the information of the evidence needed to meet the objectives of the investigation. LHP also must present a sufficiently detailed information needed in order to provide an adequate understanding for users on case examined, the findings and conclusions of the examiner. accurate
A3. LHP must be accurate in presenting information, supported by sufficient evidence
and right. An accurate report will provide assurance to users of LHP that are reported to have
credibility and reliable. One of inaccuracies in the LHP may cast doubt on the reliability of the
entire report and can divert the user's attention from the substance of the report LHP. If there
is data that can affect the conclusion that the examination can not be tested further by the
examiner, examiner must clearly show in the LHP.
objective
A4. LHP must be objective. The examiner must consider the following matters:
a. LHP examiner must present a balanced and impartial manner; and
b. The examiner must present LHP according to the facts found in the field.
reassure
A5. LHP must be assured. To be sure, LHP should present relationship Among logical examination objectives, criteria, findings, conclusions, and recommendations (if any). The information presented should be enough to convince users to recognize the validity of the report findings and benefits of implementing the recommendations. Report prepared in this manner can help the party responsible for focusing in the improvement according to the recommendations given.
Clear
A6. LHP should be clear that is easy to read and understand. The examiner must write report with clear language, not ambiguous, as simple as possible, and as far as possible avoid the use of technical terms. The examiner also must establish the logical LHP to provide clarity and understanding for the LHP.
concise
A7. LHP must be concise that does not contain information that is not necessary or not in accordance with the objectives of the investigation. The report presents information that is inadequate or contains things that are not relevant will have an impact on the reader misunderstanding on information LHP.
Elements LHP
Objectives, Scope, Methodology (Ref: Para.10)
A8. Objective examination revealed it to be achieved on the examination
A9.
The scope of investigation includes identifying the object / target
examination, aspects examined, organization, geographic location, and the
period covered in the examination.
A10. The methodology describes the whole process of inspection to satisfy objectives of the investigation. When used in the examination of experts, the use of experts must be disclosed in the LHP.
Conclusion (Ref. Para. 11)
A11. Examining provide conclusions on the objectives of the investigation. Special financial examination, the examiner stated conclusion in the form of opinions.
A12. Example format for examination opinion on the financial statements is as listed in Annex IV.1 as an integral part of this Regulation.
Findings Inspection (Ref. Para.13)
A13. Examiner revealed findings with elements that can adapted to the purpose of inspection. For example in the form of compliance checks PDTT then finding elements that should be there are the conditions, criteria, and as a result. Because the element is optional depending on the depth of testing conducted Examiner to determine the main causes of non-compliance that arise. It is also associated with ketidakharusan for the inspector to give recommendations. In the audit, the findings can also be presented in the form of a correction of the numbers in the financial statements, misstatements, and the lack of disclosure.
Recommendation (Ref. Para.15)
A14. Recommendations are only given to the responsible party. Recommendations should encourage the improvement of the weaknesses found, but not beyond what the limits of their responsibilities.
A15. Recommendations must clearly state what should be improved as well who is authorized to implement the recommended improvements. Recommendations must be submitted in line with the objectives, findings, and conclusions of the examination results.
Responses Responsible Parties (Ref: Para.17)
A16. Especially for PDTT in the form of investigative checks, for the purpose of the audit is to express an indication of loss to the state and / or the crime of the Examiner did not ask for a written response to the responsible party.
A10. The methodology describes the whole process of inspection to satisfy objectives of the investigation. When used in the examination of experts, the use of experts must be disclosed in the LHP.
Conclusion (Ref. Para. 11)
A11. Examining provide conclusions on the objectives of the investigation. Special financial examination, the examiner stated conclusion in the form of opinions.
A12. Example format for examination opinion on the financial statements is as listed in Annex IV.1 as an integral part of this Regulation.
Findings Inspection (Ref. Para.13)
A13. Examiner revealed findings with elements that can adapted to the purpose of inspection. For example in the form of compliance checks PDTT then finding elements that should be there are the conditions, criteria, and as a result. Because the element is optional depending on the depth of testing conducted Examiner to determine the main causes of non-compliance that arise. It is also associated with ketidakharusan for the inspector to give recommendations. In the audit, the findings can also be presented in the form of a correction of the numbers in the financial statements, misstatements, and the lack of disclosure.
Recommendation (Ref. Para.15)
A14. Recommendations are only given to the responsible party. Recommendations should encourage the improvement of the weaknesses found, but not beyond what the limits of their responsibilities.
A15. Recommendations must clearly state what should be improved as well who is authorized to implement the recommended improvements. Recommendations must be submitted in line with the objectives, findings, and conclusions of the examination results.
Responses Responsible Parties (Ref: Para.17)
A16. Especially for PDTT in the form of investigative checks, for the purpose of the audit is to express an indication of loss to the state and / or the crime of the Examiner did not ask for a written response to the responsible party.
