An audit is not just about checking but also preparing several tools and tools that are suitable and should be there when conducting an audit. One of these tools is called audit work papers or KKA for short.
Audit working papers are used to assist the audit process as well as being the main tool in checking every data recorded in work or financial reports.
So that the work or financial report can later be compared with the results in the audit work papers. In this article, we will explain the meaning and definition of audit working papers and their function in the auditing process.
Definition of Audit Working Paper
In general terms, Audit Working Papers or in English called Audit Working Paper, is a document created by auditor. to document the information and evidence obtained during the audit process.
Audit working papers are supporting evidence for the auditor's opinion on the fairness of the audited entity's financial statements.
In short, audit working papers are the records created and collected by the auditor during the audit process. It is the main evidence on which the auditor's opinion on the fairness of the audited entity's financial statements is based.
Kertas kerja audit adalah elemen penting dalam proses audit dan harus dibuat dengan cermat dan teliti. Kertas kerja yang baik dapat membantu auditor dalam memberikan opini audit yang berkualitas dan meningkatkan kepercayaan pengguna laporan keuangan terhadap kewajaran laporan keuangan.
Audit working papers are not just a record, but also a vital tool for auditors to build a solid and reliable audit opinion.
Purpose and Function of Audit Working Papers
There are several purposes and functions of working papers in the audit process. Here are the main functions of working papers in the audit process.
1. Support the Auditor's Opinion
The KKA is the strong evidence on which the auditor's opinion on the fairness of the financial statements is based. Auditors use KKA to demonstrate that they have conducted a thorough and competent audit, and considered all relevant evidence before providing their opinion.
2. Documenting the Audit Process
The KKA contains a detailed record of all stages of the audit, from planning to completion. It is important to show other parties, such as regulators or users of the financial statements, how the auditor conducted the audit and reached its conclusions.
3. Improving Audit Quality
A good KKA helps auditors improve audit quality in several ways:
- Ensure all relevant evidence has been appropriately considered and analyzed.
- Assist auditors in identifying and addressing potential audit issues.
- Improve audit consistency and objectivity.
4. Improving Auditor Accountability
Audit working papers are evidence of auditor accountability for their work. They can be used to explain to others the basis for the auditor's opinion and demonstrate that the auditor has met professional auditing standards.
From the main functions of the working paper, it can be concluded that an audit working paper must be made carefully and thoroughly. This is because the contents of the working paper concern copies of each report received to be double-checked by the auditor.
Good working papers can assist auditors in providing quality audit opinions and increase the confidence of users of financial statements in the fairness of financial statements.
Audit Working Paper Characteristics
Audit working papers (KKA) are important evidence that underlies the auditor's opinion on the fairness of the audited entity's financial statements. The quality of the KKA is key in producing a quality audit.
The following are the characteristics of a good and correct audit working paper in general.
1. Completeness
The KKA should contain all relevant information and evidence obtained by the auditor during the audit process. It is important to demonstrate that the auditor has considered all available evidence before rendering an opinion.
Examples of information contained in KKA include:
- Audit program
- Audit evidence
- Audit analysis
- Audit report
- Other supporting working papers.
2. Accurate
The KKA must be free from errors and reflect the true state of affairs. Auditors must be thorough in recording and documenting information and evidence obtained.
The impact of inaccuracies in KKA is as follows:
- Raises doubts about auditor credibility
- Leads to an incorrect auditor's opinion
- Provides a loophole for irresponsible parties to manipulate information.
3. Organized
The KKA should be well organized for easy understanding and use. Auditors should use a consistent and logical system of organizing and naming the KKA.
An example of a well-organized KKA:
- Make it easy for auditors to find the information they need
- Assist auditors in tracking audit progress
- Improve the efficiency and effectiveness of the audit process.
4. Clear
The KKA should be written clearly and concisely, using language that is easy to understand. Auditors should avoid excessive use of technical terms and explain information in a way that is easily understood by those without an audit background.
Example of a clear KKA:
- Make it easy for other auditors to understand the audit process
- Helps interested parties to understand the auditor's opinion
- Increase transparency and accountability of the audit process.
5. Consistent
fKKA must be consistent with the audit program, audit reportand other information obtained during the audit process. The auditor must ensure that there are no contradictions or discrepancies between the information contained in the KKA and other information.
An example of the application of Consistency in KKA is as follows:
- Enhance auditor credibility
- Strengthen the auditor's opinion
- Indicates that the auditor has conducted a thorough and competent audit.
Types of Audit Working Papers
Audit working papers (KKA) come in many forms and types, each with its own functions and uses in supporting the audit process. Here are some commonly used types of KKA.
1. Audit Program
- Contains the audit plan to be carried out, including the audit objectives, audit procedures, and audit tests to be performed.
- The audit program is prepared prior to the audit and serves as a guide for auditors during the audit process.
2. Audit Evidence
- Contains information and evidence obtained by the auditor during the audit process. Audit evidence may include:
- Copies of documents: Such as invoices, receipts, contracts, and financial statements.
- Auditor's note: Such as observations, interviews, and audit test results.
- Data analysis: Such as financial ratio analysis and trend analysis.
3. Audit Analysis
- Contains the auditor's analysis of the information and evidence obtained. Audit analysis may include:
- Explanation of audit findings.
- Risk assessment of material misstatement.
- Development of audit conclusions.
4. Audit Report
- It contains the auditor's opinion on the fairness of the financial statements, as well as other important information obtained during the audit process. The audit report is the final result of the audit process and is addressed to interested parties, such as the management of the audited entity, the board of directors, and users of the financial statements.
5. Other Supporting Working Papers
- In addition to the types of KKA above, auditors can also create other supporting KKA, such as:
- Audit memo: Contains notes and internal communications between auditors.
- Correspondence working paper: Contains correspondence between the auditor and relevant parties, such as management of the audited entity and external experts.
- Reconciliation working paper: Contains a reconciliation between the data obtained by the auditor and the data contained in the financial statements.
This is an explanation of the meaning and definition of working papers in auditing, starting from general understanding, to functions and types. Audit working papers are very important for auditing activities and for auditors in communicating what needs to be addressed in a report.
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