In an internal audit such as performance and financial audits and other internal structures, there will be a finding on the structure or performance that needs to be improved. These findings are called notifications.
An important finding for the course of an audit, because an internal audit will not reach the meeting point without a problem found.
If an inspector finds indications of findings on a structure or type of performance of an agency, then this notice opens the way for further investigation and supervision of that performance.
So the question is, what is a general and specific notice on an audit? How does a finding affect the internal audit and audit results of an institution or agency? And how to do and find a notice on an audit?
Therefore, in this article the author will explain the definition in general and specific, how to do, and examples of the findings on an internal audit of companies and organizations.
What is Notisi
In general, the notice is the result of findings in an internal audit that has been done before in an audit. The findings of the audit can also be referred to as the findings of internal structure supervision activities that have been carried out previously.
So if an audit has been carried out, there will be findings that can contain causes, factors, or other findings that contain consequences, criteria, and recommendations contained in the findings for inspector or auditor..
A notice is an official document given by the auditor to the auditor (audited entity). The findings state the purpose and objectives of the audit, the scope of the audit, the duration of the audit, and other important information related to the audit process.
In general, the audit findings are a means of formal communication between the auditor and the auditor. The findings serve to inform auditors of their rights and obligations during the audit process.
The specific findings should contain clear and complete information, such as:
- Auditor's name and identity
- Name and identity of the auditor
- Audit objective
- Audit scope
- Audit period
- Information on required documentation
- Auditory rights and obligations
- Auditor signature
The findings must be submitted to the auditor prior to the start of the audit. The auditor has the right to request an explanation of the information contained in the findings.
The findings are an important document in the audit process. These findings help ensure that audits are conducted in a transparent and accountable manner.
How to Perform and Find Audit Notisi
There are several useful ways to perform and find audit notices. In this case, the auditor will conduct several stages to determine whether the findings can be used as further audit material or not. Here's how to perform and find an audit notice.
1. Prepare A Notice Document
First, the auditor must prepare a document of the findings. This document must contain clear and complete information.
2. Deliver Audit Notices to Auditors
Second, the auditor must submit the findings to the auditor. This notice can be delivered in person, by mail, or by email.
If the findings are submitted by mail, make sure the letter is recorded and proof of receipt is obtained.
3. Provide Explanation to Auditoran
Third, the auditor must provide an explanation to the auditee about the information contained in the memorandum. The auditor has the right to request an explanation of the audit objectives, audit scope, audit timeframe, required documentation, and their rights and obligations.
4. Answer Auditoran Questions
Fourth, auditors must answer audit questions clearly and completely. Auditors must be open and transparent in answering audit questions.
5. Get Auditory Approval
Fifth, the auditor must obtain audit approval to conduct the audit. This consent can be given in writing or verbally.
6. Document the Audit Notisi Process
Sixth, the auditor must document the findings process. This documentation must include the date of submission of the findings, the manner in which the notice was submitted, the explanations given to the auditor, and the questions asked by the auditor.
7. Save Audit Notisi Document
Seventh, auditors should keep audit noting documents securely. This document should be kept for the period specified by applicable regulations.
8. Comply with Applicable Regulations
Eighth, auditors must comply with applicable regulations related to the findings. This regulation may be regulated by law, audit standards, or audit professional code of ethics.
By following the steps above, the auditor can ensure that the findings are carried out correctly and in accordance with applicable regulations.
The findings of good performance can help build a good relationship between the auditor and the auditor and ensure the smooth running of the audit process.
Sample Audit Notisi
To make it easier to understand, the author provides examples of audit findings below:
PT. Auditor A
The Free Path. 10
Product Categories: Belt Buckle > Belt Buckle
Phone: (0341) 567890
Email: [email protected]
Dear Sir.
President Director
PT. XYZ
Street Hero No. 20
Suitable For:
With respect,
Subject: Audit Notisi
Based on [specify the legal basis of the audit], we as independent auditors intend to conduct an audit of the financial statements of PT. XYZ for the financial year [specify the financial year].
The purpose of this audit is to:
- Provide an opinion on the fairness of the presentation of the financial statements of PT XYZ in accordance with the Financial Accounting Standards (SAK) applicable in Indonesia.
- Identify and report potential fraud risks and irregularities in PT XYZ's business processes.
- Provide recommendations to improve the effectiveness of the internal control system of PT. XYZ.
The scope of this audit includes:
- Review of transactions and account balances in the financial statements.
- Testing of PT XYZ's internal controls that are relevant to the process of preparing financial statements.
- Perform other audit procedures necessary to achieve the audit objectives.
The period of this audit is planned for [specify audit period], starting on [specify audit start date] and ending on [specify audit end date].
During the audit process, we ask for cooperation from PT XYZ to:
- Provide necessary documentation, such as ledgers, journals, invoices and contracts.
- Provide explanations to questions asked by the auditor.
- Facilitate auditor access to PT XYZ premises and personnel.
As an auditor, PT XYZ has the right to:
- Obtain information on the progress of the audit.
- Request explanations for audit findings.
- Respond to audit findings in writing.
Audit findings and recommendations for improvement will be submitted to PT XYZ in the form of an audit report.
Thus we convey this audit notisi.
Sincerely,
PT. Independent Auditor
[Name Of Auditor]
[Auditor Position]
[Auditor License Number]
Attachment:
- List of required documentation
- Audit schedule
Note that:
- This sample audit notation is illustrative only and can be customized to suit the needs of the audit.
- Auditors must ensure that audit notifications are made in accordance with applicable regulations.
Thus the explanation related to the findings of the performance audit. The results of the audit findings are very important in practice because the results of the audit findings can provide further explanation through the findings in the auditor that can be continued for further audit materials.
Therefore, a good audit will have good and complete audit findings.
In this case, Audithink provides complete audit notation features and comprehensive.
Notice on Audithink can help you in conducting a digital audit of a company or organization. Contact us for scheduling an app demo and more information.
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