An auditing standard is an official guideline governing how an audit must be planned, carried out, and reported, so its results are consistent, objective, and accountable. This standard is set by a professional body, not by the auditor or the entity being audited.
To understand the basics first, read the definition of audit in full.
In Indonesia there is no single auditing standard. The applicable standard depends on who is auditing and what is being audited: public accountants use the SA from IAPI, state financial examiners use the SPKN from BPK, government internal auditors use the SAIPI, while corporate internal auditors follow the IIA standards.
This article discusses the auditing standards applicable in Indonesia, the classic three-type framework still widely taught, auditor qualifications, and their difference from audit procedure.
Important notes: Many references still present “10 auditing standards” grouped into 3 types — general standards, field work, and reporting. That framework comes from the old SPAP. Since IAPI adopted International Standards on Auditing, financial statement audits in Indonesia refer to the Standard Audit (SA) organized by number, not by the three groups. This article presents both, with the old framework positioned as historical context still used in course materials.
What Is the Definition of an Auditing Standard?
An auditing standard is a provision set by a professional body to ensure audits are carried out independently, objectively, and based on sufficient evidence. Its function is to equalize a minimum level of quality: whoever the auditor is, the work performed must meet the same threshold.
Terms auditing standards and audit standards are often used interchangeably. Historically “auditing standards” referred to the old SPAP framework, while “Auditing Standards (SA)” is the official name of the standard currently applicable to public accountants in Indonesia.
Its authors differ by jurisdiction and audit type: the Indonesian Institute of Certified Public Accountants (IAPI) in Indonesia, American Institute of Certified Public Accountants (AICPA) in the United States, as well as international bodies such as the International Federation of Accountants (IFAC) which oversees the development of international auditing standards.
What Auditing Standards Apply in Indonesia?
The question “how many auditing standards are there” has no single answer, because it depends on the engagement context. Here are the main standards applicable in Indonesia along with their scope.
| Standards | Issuing Body | Used for |
|---|---|---|
| SA (Auditing Standards), part of SPAP | IAPI | Financial statement audits by public accountants. Adopted from International Standards on Auditing and organized by number, for example SA 200 on the auditor's overall objectives and SA 315 on risk assessment. |
| SPKN (State Financial Examination Standards) | BPK | Examination of state financial management and accountability, covering financial, performance, and specific-purpose examinations. |
| SAIPI (Indonesian Government Internal Audit Standards) | AAIPI | Internal audit carried out by government internal control apparatus (APIP) at ministries, agencies, and local governments. |
| Global Internal Audit Standards | The IIA | Corporate internal audit. Effective since January 2025, replacing the previous IPPF framework, and serves as the general reference for internal audit functions at companies and state-owned enterprises. |
| ISO 19011 | ISO | Guidance for management system audits, such as ISO 9001 quality audits or environmental management system audits. |
The practical consequences matter. An internal auditor at a state-owned enterprise is not bound by the SA that applies to public accountants, but by internal audit standards — and if that enterprise is also examined by BPK, that examination uses the SPKN. Equating the three is a common mistake.
See also: Internal Audit Standards in Indonesia and Guidelines for Their Implementation
How Many Auditing Standards Are There? Map of IAPI SAs by Series and When to Use Them
For financial statement audits by public accountants, the list of Auditing Standards (SA) in SPAP 2021 on the site IAPI contains the contains 37 SAs, numbered 200 to 810. The figure 37 is counted from that list. SMM, SPR, and SPA are other standards outside the SA series.
| Series | Total | SA number | Main function |
|---|---|---|---|
| 200 | 8 | 200, 210, 220, 230, 240, 250, 260, 265 | Basic principles: auditor's objectives, engagement terms, quality, documentation, fraud, laws and regulations, and communication with those charged with governance |
| 300 and 400 | 6 | 300, 315, 320, 330, 402, 450 | Planning, risk assessment, materiality, responses to risk, service organizations, and evaluation of misstatements |
| 500 | 11 | 500, 501, 505, 510, 520, 530, 540, 550, 560, 570, 580 | Audit evidence and specific procedures, from confirmation and sampling to going concern |
| 600 | 3 | 600, 610, 620 | Using the work of others: component auditors, internal auditors, and experts |
| 700 | 6 | 700, 701, 705, 706, 710, 720 | Forming the opinion and the content of the auditor's report |
| 800 | 3 | 800, 805, 810 | Special engagements: special purpose frameworks, single financial statements, and summary financial statements |
| Total | 37 |
Which SA is used when?
An auditor does not read the 37 standards in order. The auditor opens the SA that matches the situation at hand.
| Situation in the audit | SA used |
|---|---|
| Accepting a new client and drafting the engagement letter | SA 210 |
| Planning the audit strategy and plan | SA 300, SA 315, SA 320 |
| Designing procedures for assessed risks | SA 330 |
| Indications of fraud arise | SA 240 |
| Sending receivable balance confirmations to customers | SA 505 |
| Selecting transaction samples for testing | AT 530 |
| Testing accounting estimates, for example the allowance for doubtful receivables | SA 540 |
| There are related party transactions | SA 550 |
| Doubt about the client's going concern | SA 570 |
| The client uses a service provider, for example for payroll | SA 402 |
| First-year audit and opening balances | SA 510 |
| Material misstatement, the opinion must be modified | SA 705 |
| Audit of a listed entity and the need to report key audit matters | SA 701 |
The topics in the table are discussed in more depth in the article audit sampling, materiality, and fraud audit.
What about the 10 auditing standards taught in university courses?
The “10 standards” answer comes from the old framework of generally accepted auditing standards (generally accepted auditing standards): 3 general standards, 3 standards of fieldwork, and 4 standards of reporting. The details can be seen in the PCAOB's AU 150 archive. This framework is no longer used as an official standard, but its concepts live on in the SA.
| No | Group | Old standard | Equivalent concept in the SA |
|---|---|---|---|
| 1 | General | Technical training and proficiency | SA 200, SA 220, and the code of ethics |
| 2 | General | Independency | Professional code of ethics |
| 3 | General | Due professional care | SA 200 |
| 4 | Fieldwork | Planning and supervision | SA 300, SA 220 |
| 5 | Fieldwork | Understanding of internal control | SA 315 |
| 6 | Fieldwork | Sufficient appropriate audit evidence | SA 500, SA 330 |
| 7 | Reporting | Conformity with accounting principles | SA 700 |
| 8 | Reporting | Consistency in applying principles | SA 700 |
| 9 | Reporting | Adequate disclosure | SA 700, SA 705 |
| 10 | Reporting | Expression of opinion | SA 700, SA 705 |
This equivalence is only a mapping of concepts, not a one-to-one translation. So, if an exam question asks for the number of classical auditing standards, the answer is 10. If it asks for the number of SA currently applicable to public accountants, the answer is 37.
What Types of Auditing Standards Exist in the Classic Framework?
The classic framework divides auditing standards into three groups: general standards, field work standards, and reporting standards. Although already superseded by the SA in public accountant practice, this framework remains useful as a concept map because the three follow the audit flow: the auditor's requirements, how the work is done, then how it is reported.
1. General Standard (General Standards)
General standards govern the requirements attached to the auditor personally before and during the audit, focusing on professional competence, ethics, and personal qualifications.
Independency
The auditor must be independent both in mental attitude and in appearance. This means the auditor must not have a financial, personal, or business relationship with the audited entity that could affect their professional objectivity and integrity.
Professional Competency
The auditor must have adequate knowledge, skills, and experience, including an understanding of accounting principles, auditing standards, and practices applicable in the audited entity's industry.
Due Professional Care
The auditor must work with professional care and diligence at every stage of the audit, from planning to reporting, including maintaining professional skepticism toward the evidence obtained.
2. Field Work Standards (Fieldwork Standards)
Field work standards govern how the audit is carried out: planning, understanding of the entity, and gathering evidence.
Planning and Supervision
The audit must be adequately planned and the work of assistants must be properly supervised.
Understanding the Audited Entity
The auditor must understand the business environment and internal control of the entity in order to plan the nature, timing, and extent of testing.
Audit Evidence
The auditor must obtain audit evidence that is sufficient and appropriate as the basis for expressing an opinion.
3. Standard Reporting (Reporting Standards)
Reporting standards govern the preparation and delivery of the audit report so that its information is clear, accurate, and reliable for its users.
Conformity with Accounting Principles
The report must state whether the financial statements were prepared in accordance with generally accepted accounting principles.
Consistency
The report must disclose if the accounting principles used are not consistent with the prior period.
Pengungkapan
Disclosures in the financial statements are considered adequate unless stated otherwise in the auditor's report.
Auditor Opinion
The report must contain a statement of audit opinion on the financial statements as a whole, or a statement that an opinion cannot be given along with the reasons.
What Are the Qualifications of an Auditor?
General standards demand certain qualifications of the auditor personally. Here are the qualifications generally required.
Education
Auditors generally have a background in accounting or finance education, with most professional auditors holding an accounting degree.
Professional Certification
In Indonesia, public accountants must hold a license as a Public Accountant and generally hold a CPA certificate. For internal auditors, the common certification is Certified Internal Auditor (CIA) or Qualified Internal Auditor (QIA).
Job Experience
Experience determines the auditor's ability to recognize patterns of irregularity. The auditor needs to understand the characteristics of various industries and entity types.
Analitical Ability
The auditor must be able to evaluate financial data, read trends, and identify anomalies indicating potential errors or irregularities.
Professional Ethics
Integrity, independence, objectivity, and confidentiality are ethical demands attached to the auditing profession and governed by the profession's code of ethics.
What Is the Difference Between Auditing Standards and Audit Procedures?
Both are equally important but operate at different levels. Standards answer “how well must the audit be carried out”, while procedures answer “what is done today”.
| Aspect | Audit Standards | Audit Procedure |
|---|---|---|
| Properties | Normative, binding | Practical, operational |
| Issuing Body | Professional body | Auditor or audit team |
| Flexibility | Fixed, applies to all engagements | Tailored to the entity and audit objective |
| Example of | The auditor must obtain sufficient and appropriate evidence | Confirming receivable balances with the 30 largest customers |
What Are the Provisions of Internal Auditing Standards?
Internal audit has its own provisions, separate from financial statement auditing standards. Here are the main points of those provisions.
Independency
Internal auditors must be independent both organizationally and individually, free from interference by any party within the organization that could affect their judgment. Organizational independence is generally achieved through a direct reporting line to the audit committee or board of commissioners.
Competency
Internal auditors must have adequate knowledge, skills, and experience, and are required to maintain them through continuing professional education.
Audit Planning
Each engagement must be planned by setting objectives, scope, methodology, and resource allocation. Planning must take into account risks and the existing internal controls.
Audit Execution
The audit is carried out according to plan by gathering sufficient and relevant evidence to support each finding and recommendation.
Audit Reporting
The report includes an assessment of the effectiveness of internal control, risk management, and organizational governance, and is delivered to the appropriate parties such as management, the board of directors, or the audit committee.
Evaluation
Internal auditors monitor management's follow-up on audit recommendations and report the results of that monitoring to the appropriate parties.
Applying all of these provisions consistently across every engagement is easier when the workflow is documented in a single system. The functions, features, and how to choose such a system are explained in Audit Software: Definition, Functions, Features, and How to Choose Software for Auditing.
See also:
- What is opinion not expressing an opinion? - Definition and basis of awarding
- Complete Guide to the external Auditor profession: duties, roles and salary
FAQ About Auditing Standards
What is an auditing standard?
An auditing standard is an official guideline governing how an audit must be planned, carried out, and reported so its results are consistent, objective, and accountable. This standard is set by a professional body, not by the auditor or the entity being audited.
How many auditing standards are there?
There is no single number, because it depends on context. The classic framework divides them into 3 groups: general standards, field work, and reporting. Meanwhile, the Auditing Standards (SA) applicable to public accountants in Indonesia are organized by number, not by group.
What auditing standards apply in Indonesia?
It depends on the type of audit: SA from IAPI for financial statement audits by public accountants, SPKN from BPK for state financial examinations, SAIPI from AAIPI for government internal audit, IIA standards for corporate internal audit, and ISO 19011 for management system audits.
What is the difference between auditing standards and audit standards?
The two are often used interchangeably. Historically “auditing standards” referred to the old SPAP framework with ten standards in three groups, while “Auditing Standards (SA)” is the official name of the standard currently applicable to public accountants in Indonesia.
Who sets auditing standards?
A professional body. In Indonesia, the Indonesian Institute of Certified Public Accountants (IAPI) sets the SA, BPK sets the SPKN, and AAIPI sets the SAIPI. At the international level there is IFAC, which oversees the development of auditing standards, as well as AICPA in the United States.
What types of auditing standards exist in the classic framework?
Three groups: general standards (independence, professional competence, due professional care), fieldwork standards (planning and supervision, understanding of the entity, audit evidence), and reporting standards (conformity with accounting principles, consistency, disclosure, auditor's opinion).
What is the difference between auditing standards and audit procedures?
Auditing standards are normative and binding on every engagement — a professional body's guideline on how well an audit must be carried out. Audit procedures are practical and operational: concrete steps for gathering evidence, tailored to the entity and the audit objective.
What qualifications must an auditor have?
A background in accounting or finance education, professional certification (CPA for public accountants, CIA or QIA for internal auditors), work experience in audit, analytical skills, and professional integrity and ethics.
Read also — compliance, legal, and quality audit:
- Customs Audit: Purpose, Types, Scope, and Real Case Examples
- What Is Legal Audit? Definition, purpose, and implementation process
- The importance of Audit of procurement of goods and services for the organization
- Internal Quality Audit: 2 Stages of Implementation, Examples, and Benefits
Apply Auditing Standards Consistently with Audithink
Keeping every engagement following the same standard — from risk-based planning, evidence documentation, to follow-up monitoring — is hard to maintain when everything is managed manually. Audithink, internal audit management software for companies and state-owned enterprises in Indonesia, helping internal audit teams standardize the audit workflow according to standards in one integrated platform.
See Audithink's features or schedule a demo to see how it works.
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