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.
A notation is important to the course of an audit, as an internal audit will not reach a conclusion without a problem being found.
If an inspector finds indications of notices in an agency's structure or type of performance, these notices open the way for further investigation and supervision of that performance.
So the question is, what is notisi in general and specific to an audit? How does a notation affect the internal audit and audit results of an institution or agency? And how to do and find notices in an audit?
Therefore, in this article, the author will explain the definition of notisi in general and specifically along with how to do or find notisi and examples of notisi in an internal audit company and organization.
What is Notisi
In general, a notation is a finding in an internal control that has been carried out previously in an audit. Notices can also be referred to as the findings of internal structure control 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..
An audit memorandum is an official document provided by the auditor to the auditor (audited entity). It states the purpose and objectives of the audit, the scope of the audit, the audit period, and other important information related to the audit process.
In general, audit notices are a formal means of communication between auditors and auditors. It serves to inform the auditors of their rights and obligations during the audit process.
Specific audit notices 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
Audit notices should be provided to the auditors prior to the commencement of the audit. The auditor has the right to request an explanation of the information contained in the notation.
Audit notices are important documents in the audit process. It helps ensure that the audit is conducted in a transparent and accountable manner.
How to Perform and Find Audit Notisi
There are several useful ways to conduct and find audit notices. In this case, the auditor will perform several steps to determine whether the notices found can be used as further audit material or not. Here is how to perform and find audit notices.
1. Prepare Audit Notisi Document
First, the auditor must prepare an audit noting document. This document should contain clear and complete information.
2. Deliver Audit Notices to Auditors
Second, the auditor must deliver the audit notices to the audit firm. This can be delivered in person, by mail, or by email. If the notices are delivered by mail, make sure the mail is recorded and a 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, auditors should document the audit noticing process. This documentation should include the date of the notarization, the manner in which the notarization was delivered, the explanations provided to the auditors, and the questions asked by the auditors.
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 audit notices. These regulations may be governed by laws, auditing standards, or the auditing profession's code of ethics.
By following the steps above, auditors can ensure that audit notices are done correctly and in accordance with applicable regulations. A good audit notation can help build a good relationship between the auditor and the audit firm and ensure a smooth audit process.
Sample Audit Notisi
To make it easier to understand, the author provides an example of audit notation. Here is an example of audit notation.
PT. Auditor A
Jalan Merdeka No. 10
Surabaya, Jawa Timur
Telp: (0341) 567890
Email: [alamat email]
Dear Sir.
Direktur Utama
PT. XYZ
Jalan Pahlawan No. 20
Malang, Jawa Timur
Dengan hormat,
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.
Hormat kami,
PT. Auditor Independen
[Nama Auditor]
[Auditor Position]
[Nomor Izin Auditor]
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.
This is an explanation of audit notices. Audit notices are very important in practice because audit notices can provide further explanation through audit findings that can be continued for further audit materials. Therefore, a good audit will have a good and complete audit notation.
In this case, Audithink provides complete audit notation features and comprehensive. The notations 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.
