Wednesday, June 26, 2019

state financial audit standards


Isna Kamillia Insani
C1I016017


STANDARD STATEMENT OF EXAMINATION OF 100 GENERAL STANDARDS
PRELIMINARY
Scope:
 1. This PSP sets general standards for carrying out financial checks, performance checks and PDTT.
 2. This general standard relates to ethics
Effective date
This PSP is valid and has binding legal force from the date of promulgation.
Purpose
The purpose of the examiner in implementing the General Standards is as a basis for effective implementation of standards and reporting standards. Thus, this general standard must be followed by the BPK and all Examiners who carry out checks based on the Inspection Standards.
DEFINITION
The Supreme Audit Agency, hereinafter abbreviated as BPK, is a state institution that has the duty and authority to examine the management and responsibility of state finances.
PROVISIONS
Ethics
 BPK members and Examiners must carry out checks in accordance with ethical principles as an important element of the value of accountability and public expectations to the BPK and the Examiner in carrying out the examination.
Independence, Integrity and Professionalism
 BPK members and auditors in carrying out their duties and authorities must adhere to ethical principles, namely independence, integrity and professionalism which are the basic values ​​of the BPK. (Ref. Para. A1-A2)
 Examiners must use professional skills carefully and thoroughly, professional skepticism, and professional judgment throughout the inspection process.
Quality Control
The BPK must establish a quality control standard to ensure the quality of inspection results.
In implementing quality control standards, the BPK must establish and develop a quality control system to ensure that inspections are in accordance with inspection standards and statutory provisions.
The quality control system consists of procedures and policies to ensure the acquisition of high quality inspection results in accordance with inspection standards and statutory provisions.
The quality control system consists of procedures and policies to ensure the acquisition of high quality inspection results in accordance with inspection standards and statutory provisions.
Competence
Collective examiners must have adequate professional competence to carry out inspection tasks. Professional competence is proven by professional certificates issued by authorized institutions or other documents that state expertise. (Ref: Para. A10 - A11)
The BPK must determine the competencies needed to ensure that Examiners have the appropriate expertise to carry out audit assignments.
 The examiner must maintain his competence through the shortest continuous professional education of 80 (eighty) hours in 2 (two) years.
Considerations for Non-compliance, Fraud, and Disability
The examiner must design an audit to provide adequate confidence to detect non-compliance with the provisions of the laws, contracts, and other legal products that have a direct and material effect on the main points / information on the subject matter being examined.
The examiner must identify fraud risk factors and assess the risk of non-compliance with the provisions of laws and regulations caused by fraud and / or abuse. These risks must be considered as significant risks (significant risks) and the Examiner must obtain an understanding of the controls associated with these risks. (Ref: Para. A13)
 If there is a risk of non-compliance with the provisions of legislation that indicates fraud and disobedience that significantly influences the main points / information on the main matter being examined, the Examiner must modify the procedure to identify the occurrence of fraud and / or disobedience, and determine its impact on the main thing / information principal examined.
Communication Examination
The examiner must establish efficient and effective communication throughout the inspection process so that the inspection process runs smoothly and the results of the examination can be understood and acted upon by the parties responsible and / or relevant stakeholders. (Ref: Para. A14).
The examiner must use professional judgment to determine the form, content, and intensity of communication.
If there is a termination of the examination, the Examiner must provide a written explanation to the official who gave the assignment.
MATERIAL APPLICATION AND OTHER EXPLANATION
Independence, Integrity, and Independence Professionalism
The BPK needs to pay attention to personal interference with the independence of its examiners. Personal disturbances caused by a relationship and personal views may result in the examiner limiting the scope of the question and disclosing or weakening the findings in all its forms. The examiner is responsible for notifying the authorized official at the BPK if he has a personal disruption to independence.
Integrity
. Integrity, among others, is manifested in an honest, objective, and firm attitude in applying principles, values, and decisions.
Professional Proficiency
The examiner must use professional skills carefully and carefully in determining the type of examination to be carried out, determine the scope of the examination, select the methodology, determine the type and amount of evidence to be collected, or in selecting tests and procedures to carry out the examination, and in evaluating and reporting the results examination.
Professional skepticism
The examiner must plan, carry out, and report on the examination with a professional attitude of skepticism. The examiner acknowledges that certain conditions can cause the principal to deviate from the criteria. A professional attitude of skepticism means that the examiner makes critical judgments with thoughts that always question the adequacy and accuracy of the evidence obtained during the examination.
 The examiner must use professional skepticism in assessing the risk of significant fraud to determine factors or risks that can significantly affect the work of the examiner if fraud occurs or may have occurred.
Professional Considerations
The examiner must use professional judgment in making decisions about:
a. main things / information on main things;
b. appropriate criteria;
c. parties related to the examination;
d. level of confidence;
e. scope of inspection;
f. risk of inspection;
g. the inspection procedure to be used relates to the risk of inspection;
h. materiality.
The examiner must also use professional judgment in evaluating the adequacy and accuracy of the proof of examination obtained, and the steps to achieve the overall objectives of the examination.
The examiner must use professional judgment in making conclusions based on the evidence of the examination obtained.

Competence
Professional competencies include education and experience. Professional competence is not only measured quantitatively by how long the examination experience is, because it cannot accurately describe the type of experience the examiner has.
Use of Experts
Experts can be used to give advice to the Examiner or be part of the Examining team.
Considerations for Non-compliance, Fraud, and Disability
The examiner only has an interest in the initial indications of fraud that have a material impact on opinions or conclusions. Even though the Examiner finds early indications of fraud, the Examiner is not authorized to declare fraud has occurred because the term fraud is the legal domain.
Communication Examination
The examiner communicates matters related to the inspection process, including the purpose of the examination, the scope of the examination, the time of examination, the inspection criteria, the examination findings, and the difficulties or limitations encountered during the examination.
STANDARD STATEMENT OF EXAMINATION OF 200 EXAMINATION STANDARDS OF EXAMINATION
PRELIMINARY
Scope
  This PSP regulates the responsibilities of Examiners in carrying out Examinations which include planning, collecting evidence, developing audit findings, and supervising.
  Planning relates to the examiner's responsibility in connecting the audit topics to be carried out with BPK's strategic planning and drawing up plans for each audit assignment.
Effective date
This PSP is valid and has binding legal force from the date of promulgation.
Purposes
The purpose of the Examiner in implementing this standard is to:
a. plan quality checks so that they can be carried out efficiently and effectively.
b. design and carry out inspection procedures to obtain sufficient and appropriate evidence.
DEFINITION
For the purposes of this standard, the terms below mean the following:
Strategic planning is the process of drafting the vision and mission prepared by the BPK every 5 (five) period and contained in the Strategic Plan (Renstra) document. The Strategic Plan contains the BPK's vision and mission to be achieved in a 5 (five) year period, and among other things it contains priority audit policies and strategies.
  PROVISIONS
Planning
 The BPK and the Examiner must plan the examination properly.
The BPK must make a strategic plan to fulfill the implementation of audit tasks and stakeholder expectations.
Relationship between BPK Examination and Strategic Planning
The BPK must be guided by the BPK Renstra in preparing the annual audit plan. In examining performance and PDTT, the Examiner must determine the principal matters to be examined. The examiner must determine the factors that are the basis for consideration in determining the principal matter. (Ref: Para. A1-A2)
Assignment Planning
 The examiner must clearly state the purpose of the examination of information on the subject matter or subject matter to be examined.
The examiner must ensure the clarity of each inspection assignment carried out. (Ref: Para. A3)
 The examiner must obtain an understanding of the entity and / or the main thing / information on the subject matter being examined that is needed to identify the problem, determine the materiality, risk, type and source of evidence, and auditability. (Ref: Para. A4-A6)
Proof of acquisition
 The examiner must design and carry out appropriate inspection procedures to obtain sufficient and appropriate examination evidence. (Ref: Para. A19)
 The examiner must implement procedures that have been designed to obtain sufficient and appropriate audit evidence for the risk of fraud that has been identified.
The examiner must determine the overall response if an initial indication of fraud / indication of fraud is found in the examination.
Development of Findings
 The examiner must develop the audit findings if there is a discrepancy between the conditions and criteria.
 The examiner must consider the elements of the findings which consist of conditions, criteria, consequences, and causes in developing audit findings. But the elements needed for an audit finding depend on the purpose of the examination.



MATERIAL APPLICATION AND OTHER EXPLANATION
Relationship between BPK Examination and Strategic Planning
An understanding of the Strategic Plan is needed to provide strategic direction in the preparation of the annual audit plan, determination of assignment expectations, and objectives of the examination.
The factors that form the basis for determining the main things include public expectations and materiality of a basic matter.
Assignment Planning
 Information that needs to be understood together includes the main things / information on the main things to be examined, the scope and purpose of the examination, access to the data needed, reports that will be produced, the inspection process, the parties that can be contacted during the examination, and the roles and responsibilities of all parties related to the examination.
Understanding of the entity and / or principal / information on the main subject being examined can be obtained from the knowledge that the Examiner has on the entity and / or the main thing / information on the main subject being examined and the results of the information collected during the examination.
Proof of acquisition
The examiner can obtain data and information by conducting observations, interviews, surveys and measurements, among others. In determining the method of obtaining data, the examiner uses professional judgment. If needed, the Examiner can use experts to help design methodologies for obtaining data and information. (Ref: Para. 25, 28)
Adequacy of evidence is based on the auditor's conviction that the evidence produces reliable conclusions.
Development of Findings
The elements of the examination findings are called complete as long as the purpose of the examination has been fulfilled. The audit findings clearly linked the purpose of the examination to the element of findings.
If there is an ineffectiveness of internal control or non-compliance, fraud, and / or material impropriety but does not directly support the purpose of the inspection, the Examiner must discuss the matter in stages to decide whether or not a special examination is related or not.
Supervision
Supervision is carried out in stages and is intended to ensure the achievement of the objectives of inspection and the achievement of quality checks in accordance with inspection standards.
 The nature and extent of supervision, as well as a review of the results of the Examiner's work may vary depending on a number of factors, such as the number of personnel in the Examining Team, the importance of inspection work, and the experience of the Examiner.
STANDARD STATEMENT OF EXAMINATION OF 300 EXAMINATION REPORTING STANDARDS
PRELIMINARY
Scope
 This PSP regulates the obligation of the Examiner to prepare LHP for financial audits, performance checks and PDTT.
Effective date
 This PSP is valid and has binding legal force from the date of promulgation.
Purpose
The purpose of the Examiner in implementing this reporting standard is to:
 a. form a conclusion of the examination results based on an evaluation of the proof of examination obtained;
 b. communicate the results of the examination to the parties concerned.


DEFINITION
 The terms in this standard are as follows:
 LHP is a written report from the inspection process that contains the results of the analysis of the testing of evidence obtained during the examination.
PROVISIONS
Necessity of Compiling Reports
 The examiner must prepare the LHP in writing to communicate the results of the examination.
The examiner must arrange LHP in a timely, complete, accurate, objective, convincing, clear and concise manner. (Ref: Para. A1- A7)
LHP element
LHP must fulfill the report element according to the type of examination. LHP elements include:
a. A statement that the inspection is carried out in accordance with inspection standards;
b. Objectives, scope, methodology;
 c. Conclusion;
 d. Examination findings;
e. Inspection recommendations;
f. Response of the responsible party;
 g. Signing of LHP
Examination Findings
The examiner must disclose the findings in the LHP if there is a discrepancy between the conditions and the criteria. (Ref: Para. A13)
 The examination findings that contain early indications of fraud are presented in the LHP without explaining in detail the alleged fraud. However, the Examiner focuses more on the explanation of the impact of the findings on the main points / information on the main objectives according to the purpose of the examination.
Inspection Recommendations
 The examination recommendations must be constructive and useful to correct weaknesses found in the examination. (Ref: Para. A14-A15)
The inspector must provide recommendations on performance checks. In examinations other than performance checks, if the Examiner can adequately develop audit findings, the Examiner can make recommendations. Especially in PDTT in the form of investigative examinations, the Examiner does not provide recommendations.
Reporting Confidential Information
If certain information is prohibited from being disclosed to the public, the LHP must disclose the nature of the information that is prohibited from being disclosed and the provisions prohibiting disclosure of such information.
Publishing and Distribution Reports
 The BPK must submit LHP on time to representative institutions, responsible parties, and other parties who are authorized to receive LHP in accordance with statutory provisions.
In the event that the inspection is classified information, the distribution of the LHP can be limited.
 Information obtained through PDTT in the form of an investigative examination is confidential information.
MATERIAL APPLICATION AND OTHER EXPLANATION
Necessity of Compiling Reports
On time
LHP must be on time so that the information delivered is maximally useful.
Complete
 The LHP must complete all information from the evidence needed to fulfill the purpose of the examination.

Accurate
 LHP must be accurate in presenting information, supported by sufficient and appropriate evidence.
Objective
LHP must be objective. The examiner must pay attention to the following matters: a. The examiner must present the LHP in a balanced and impartial manner; and b. The examiner must present the LHP in accordance with the facts found in the field.
Convincing
 LHP must be convincing. To be sure, LHP must present a logical relationship between the objectives of the examination, criteria, findings, conclusions, and recommendations (if any).
Evidence
 LHP must be clear, which is easy to read and understand. The examiner must write a report in clear, unambiguous language, as simple as possible, and wherever possible avoid the use of technical terms.
Compact
 LHP must be concise, that is, it does not contain information that is not necessary or not in accordance with the purpose of the examination.
Recommendation
 Recommendations are only given to those responsible. Recommendations must be able to encourage improvements to the weaknesses found, but not beyond what is the limit of their responsibilities.
Recommendations must clearly state what must be improved and who is authorized to carry out the recommended improvements. Recommendations must be submitted in line with the objectives, findings, and conclusions of the results of the examination.

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