Types of Government Sector Audit, Authority of Government Audit, Auditing Duties
Types of Government Sector Audits and Government Audit Authorities - According to Law No. 15 of 2004, government sector audits consist of financial audits, performance audits, and audits with a specific purpose.
1. Financial Audit is an examination of financial reports that aims to provide adequate assurance, whether the financial statements are presented fairly, in all material respects in accordance with generally accepted accounting principles in Indonesia or a comprehensive basis of accounting other than generally accepted accounting principles in Indonesia. Indonesia.
The objective of an audit of financial statements is to express an honest opinion regarding the financial position, results of operations and cash flows in conformity with generally accepted accounting principles. The auditor's report is a medium that expresses the auditor's opinion, or under certain conditions, disclaims an opinion. Financial audit consists of several elements as follows.
The financial report segment, DIPA, is the difference between the realization and the budget.
Internal controls regarding compliance with applicable laws.
Internal control or supervision over the preparation of financial statements and over the safeguarding of assets, including the safeguarding of PADAE.
Compliance with applicable regulations and allegations of fraud.2. An audit with a specific purpose is an inspection that is not included in the financial audit and performance audit. This examination produces a conclusion. Audits with specific objectives can be in the form of examinations, reviews, or agreed procedures. Audits with specific objectives include audits of other matters in the financial sector, investigative audits, and audits of internal control systems.
3. Performance Audit, also known as performance audit, Value for Money (VFM) audit, management audit, operational audit or 3E audit, is an objective and systematic audit of various types of evidence to assess the performance of the entity being audited in terms of economy, efficiency , and effectiveness, with the aim of improving the performance of the entity being audited and increasing Government accountability. In conducting a performance audit, the auditor also tests compliance with statutory provisions and internal controls. This examination produces findings, conclusions, and recommendations. Through performance audits, the level of government accountability in the decision-making process by the responsible party will increase thereby encouraging oversight and then corrective action.Performance/operational audit has the following characteristics:
be constructive and not critical
does not prioritize finding fault with the auditee
give early warning, don't be late
objective and realistic
up-to-date data, ongoing activities
understand management efforts (management oriented)
Providing recommendations instead of following up on recommendations
The benefits of a performance/operational audit include:
The costs of activities will be smaller or more economical
Work results (productivity) will increase
Inappropriate plans, policies, etc. can be corrected
The work atmosphere becomes healthier
Performance audits include economic and efficiency audits , as well as program audits.
1. Economic and Efficiency Audit
Economic and efficiency audits are conducted to determine:
Does the entity acquire, protect and use its resources sparingly and efficiently.
What are the causes of waste and inefficiency?
Has the entity complied with applicable laws and regulations regarding savings and efficiency?
Audit Program audit includes determination of:
The level of achievement of the desired program results or benefits that have been determined by law or other authorized bodies.
The effectiveness of the entity's activities, program implementation, activities or functions of the agency concerned.
The level of compliance of the audited entity with the applicable laws and regulations relating to the implementation of its programs/activities.
Who is Authorized to Conduct Government Sector Performance Audits?
Institutions authorized to carry out inspections within the government environment consist of internal examiners and external examiners.
1. The internal examiner is played by the BPKP, the Inspectorate General of each department, and the Regional Government Inspectorate. This institution is incorporated as the Government Internal Supervisory Apparatus (APIP). The scope of the audit carried out by this internal examiner is an audit of performance, an audit with a specific purpose and a review of government financial reports.
2. The external examiner is played by BPK RI. The scope of the audit conducted by BPK includes audits of government financial reports, performance audits and audits with specific objectives. Further information about BPK, its responsibilities and authorities, is contained in the regulation of Law No. 15 of 2006 concerning BPK RI.