A general audit is a type of audit with a wider scope than special audit that will only check in a limited scope.
This Audit itself has a role in a company to ensure accountability, transparency, and compliance with applicable laws and regulations.
In its implementation, there are the terms general audit and special audit, which are distinguished based on the scope of the examination.
For a better understanding of General Auditing and more information about this type of audit, please refer to the explanation of the following article.
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Understanding The General Audit
General Audit is an examination and evaluation conducted by an independent auditor of the financial statements in a comprehensive manner based on accounting standards and code of conduct that happens.
General Audit is an audit that is generally used in periodic company checks. Unlike a special audit, which is carried out only when necessary.
Special Audit is an examination that has examination coverage on certain aspects, such as tax audit, compliance audits, cost audits, fraud audits, and so forth.
The implementation of the general audit has an important role in the sustainability of a business, where decisions and actions taken based on the results of the audit are for better development.
While the implementation of special audits that instead of examining the entire financial report, will only focus on special areas triggered by allegations of fraud, legal disputes, data misuse, and so on.
General Audit Objectives
Basically, the general audit conducted by independent auditors of public accounting firm aims to provide opinion on reasonableness comprehensive financial statements of the company.
The purpose of the general audit is more clearly as follows:
- Candidate must possess at least a bachelor's Degree, Engineering (Computer / Telecommunication) OR Equivalent
- Verify the accuracy of any figures and information on the financial statements that have been recorded
- Ensuring the physical existence or legitimate evidence of the existence of assets, liabilities, or transactions that have been recorded is not just a mere report
- Ensure valuations on assets and liabilities are carried out reasonably based on accounting standards
- Review the classification of transactions in the financial statements or data examined
- Ensure the recording of the transaction period is correct to avoid recording manipulations that affect the financial statements
- Ensure the clarity of disclosure of relevant and material information that affects the decisions of users of financial statements
Stages Of The General Audit
As previously explained that the general audit as well as financial statement audit commonly implemented by the company periodically.
So that the stages of the general audit will be similar to the audit process in general. Here is the explanation:
1. Menguasai komputer (Ms. office)
The Auditor will collect the required documents regarding the needs of the general audit after confirming the arrival and sending checklist audit in companies that will be audited first.
The documents recorded in the list include copies of financial notes, current accounts, ledgers, audit reports of previous periods, and so on.
At this stage the auditor will also request a list of the company's organizational structure, the name of the board, and the name of the relevant committee.
2. Perform general audit process planning
The Auditor will conduct audit planning by examining the information contained in the relevant documents.
Joint Auditor audit team will conduct a risk workshop to identify potential problems that will arise when the audit process is carried out.
After that, the auditor can prepare an audit implementation plan based on discussions conducted with the audit team.
3. To hold an open meeting
The Auditor will determine the schedule of open meetings after the documents and plans are ready that will invite important company staff, such as senior management, general affairs, or others.
At this stage, the auditor will explain the scope of the general audit process, the duration of the implementation, and several other matters related to the implementation of the audit on the company's management.
The Auditor will also inform the chief of staff about the interviews that the auditor will conduct with some important employees.
4. Carry out field work
The Auditor will communicate with the company's staff to observe its internal procedures and operating system.
The Auditor will also ensure compliance of the financial statements with the applicable PSAK (statement of Financial Accounting Standards) and will evaluate the effectiveness of the company's internal control system.
If the company's control is found to be inadequate, the auditor can provide recommendations to prevent and detect fraud or non-compliance.
Furthermore, the auditor will discuss with the company's management related to existing problems. This allows the company to provide an opinion or explanation regarding the matter.
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5. Prepare audit report
The Auditor will begin to prepare and compile a general audit report that will include details of the information obtained during the audit process.
The audit report will contain errors or discrepancies that occur in the company after the review.
From the problems contained in the audit report, the auditor will provide recommendations and suggestions regarding further action on the company.
6. Carry out closing meetings
At this stage, a meeting will be held and the auditor will examine each response and opinion of the client regarding the findings contained in the audit report.
Recommendations for further action or improvement plans will be submitted by the auditor to address the problems recorded in the audit report.
The Auditor will also determine the official response to the completion of the general audit while ensuring that the client has understood the contents of the audit report before it is published.
If there is a problem again, the auditor and company management can set a joint solution at this meeting, so as to avoid revisions or problems after the audit is completed.
General Audit Standards
There are several audit standards general or guidelines that need to be followed by auditors in carrying out audits.
Among the general audit standards in force in Indonesia are the following:
1. Professional standards of Public Accountants (SPAP)
It is a standard that includes four principles, namely integrity, objectivity, professional competence, and confidentiality.
This SAAP contains guidelines for Public Accountants in carrying out audit, review, and other services that are made to ensure public accountants work objectively, professionally, and in accordance with ethics.
2. Standar Audit (SA)
Audit standards consist of 17 standards classified into three groups, namely General Standards, Implementation standards, and Reporting Standards.
This standard will specifically regulate the guidelines and procedures for conducting a general audit of the financial statements made to ensure that the audit is conducted objectively, systematically, and in accordance with applicable regulations.
3. External asa standard (SJE)
Unlike other standards that regulate audit and review guidelines, SJE regulates external services, such as business consulting, asset valuation, taxation services, and other services other than auditing.
SJE contains guidelines on the implementation of external services, standards for preparing reports on external services, and professional ethics that must be adhered to during implementation.
4. Standard Review of Financial Information (SR-IK)
It is a standard that includes three aspects, namely the review process by auditors, the preparation of Review reports, and professional ethics that auditors must comply with during the review process.
SR-IK becomes a standard for conducting a review or review of financial statements that are not carried out through the audit process.
5. Professional ethics standards of Public Accountants (SEPA)
This standard is used to regulate the professional ethics that must be adhered to by Public Accountants in carrying out audit tasks and other services.
Among the principles in the standards of professional ethics of Public Accountants are, such as integrity, objectivity, professional competence, confidentiality, and professional conduct.
This standard is used to ensure audits are carried out systematically, objectively, and independently so as to provide sufficient confidence in the financial statements.
Auditors also need to pay attention to the requirements of Professional Ethics in SPAP and SEPA so that audit, review, and other tasks can be carried out with high integrity and professionalism.
Conclusion
Thus is the explanation of the general audit which has an important role for the sustainability of the company.
In addition to General audits, there are specific audits that companies tend to carry out to identify specific areas.
If you want to carry out an internal audit for the company, you can take advantage of the Audithink application media to facilitate the audit process.
This is because you can take advantage of its features ranging from organizing task management to audit reporting and monitoring action plans can be done with this application.
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