AUDITING 2 INDIVIDUAL ASSIGNMENT

SPKN 2017

(Regulation of BPK RI Number 1 Year 2017)

The State Financial Examination Standard (abbreviated as SPKN) is a benchmark for examining the management and responsibility of state finances. The State Financial Examination Standard is stated in the form of Inspection Standard Statement (PSP). The State Financial Inspection Standards are used by the Supreme Audit Agency as a guideline in auditing financial statements.

In order to audit (checking) duty, BPK have been arranged audit standard for the first time at years 1995 which called Government Audit Standard (SAP). Nowadays, the constitutional and policy in audit keep moving continuesly so it causing at years 2007 BPK  arranging audit standard which called as State Financial Audit Standards (SPKN).  Thus, there are 3 sub-standars in audit standard based on UU Number 15 Years 2004 as the following :

1.      General Standard 

2.      Audit Implementation Standard 

3.      Audit Report Standard

The development of international audit standard in nowadays change from rule-based standards into principle-based standards. So that’s why SPKN 2007 is not appropriate anymore implement in this era. At beginnning years of 2017, BPK success finishing the amandment or correction for SPKN 2007 and applied as Regulation of BPK number 1 years of 2017. The content in this new regulation (BPK number 1 years of 2017) almost same with SPKN 2007 in which consist of :

a.       First attachment about Conceptual Framework

b.      Second attachment PSP 100 about General Standard

c.       Third attachment PSP 200 about Audit Implementation Standard

d.      Fourth attachment PSP 300 about Audit Report Standard

The first attachment is audit conceptual framework in which disscussion detail about general representation, elements, the principle, the development, and the relationship among conceptual framework, state regulation, audit standard and others certainty. In general representation of state financial audit there are disscuss regulation about mandate, independency, authority, definition, scope, types, benefit, transparency and accountability of state financial. Then next, the elements of state financial audit disscussing about the parties, subject matter and the information about it, audit criteria, audit evidence, audit result report, continuation controll of audit result.

Thus, the principle of state financial audit consist about ethics code, quality controll, management and skill of audit team, audit risk, materiality, audit documentation,and audit communication. Conceptual framework is not applying the certainty and audit procedures because it is regulated in audit standard but developed according with the conceptual framework and state regulation.

Declaration of audit standard (PSP) 100 is about general standard for doing the financial audit, performance audit, and PDTT. This general standard related to :

a.       Ethics

b.      Independency

c.       Integrity

d.      Professionalism

e.       Quality control

f.       Competence

g.      Consideration of non-compliance ,Fraud, and disobedience

h.      Audit communication and documentation

i.        examination in the implementation and reporting of examination results

j.        relationship with professional standards used by public accountants as well as obligations Government Internal Oversight Apparatus and public accountants in the examination state finances.

The detail explanation can be viewed at page 23 in SPKN 2017 (Regulation of BPK number 1 years 2017).

Declaration of audit standard (PSP) 200 is about audit implementation standard which  regulates the responsibilities of the auditor in carrying out the audit which includes :

1.      Planning

2.      Collecting evidence

3.      Development inspection findings

4.      Supervision

The purpose of implementing this standard is to planning the quality checks to be implemented efficiently and effectively, then designing and carrying out inspection procedures to obtain sufficient and appropriate evidence. The detail explanation can be viewed at page 41 in SPKN 2017 (Regulation of BPK number 1 years 2017).

Declaration of audit standard (PSP) 300 is about audit report standard which regulate the mandatory to making the audit result report for financial audit, performance audit, and PDTT. The audit result report (LHP) has several functions like in the following :

a.       Communicate the results of the examination to the party authorized parties based on applicable laws and regulations

b.      Avoid misunderstanding of the results of the examination

c.       Making results examination as material for carrying out corrective actions by the parties responsible

d.      Facilitate follow-up monitoring for determine the effect of the corrective action that should be taken.

The purpose of the Auditor implementing this reporting standard is to make a conclusion of the audit results based on the above evaluation proof of examination obtained and communicate the results of the examination to the parties concerned. The detail explanation can be viewed at page 56 in SPKN 2017 (Regulation of BPK number 1 years 2017).

In the final explanation of this regulation there are also provided the example illustration of all audit opini (unqualified, qualified, adverse, and disclaimer). This regulation can access in the legal website of BPK in www.bpk.go.id.