9.

Issuance of an Audit Task Letter

After the program was made by the public organization, they will issue the task
letter for conduct audit by the supreme audit agency or the auditor. The supreme audit
agency itself could appoint the auditor that could be outside of them. The auditor that
appoint could be the individual or institution.
10. Financial Audit Examination
In conduct the audit, there are several things that should be done, such as:
a. Evaluate the Internal Control
Internal control was made by the public organization in order to avoid the fraud
and thief of the assets. There are several kinds of internal control, such as:
i. Organization
How the organization transfer the authority and responsibility to the
employee. How the organization could report all of the aspect and control.
ii. Separation of duties
In internal control, there should be separation of duties. If an employee
handles the two or more things, they could make a mistake of do the thief
because he could manipulate the data. Separation of duties will be prevent the
amount of manipulate of error that could be happen.
iii. Physical examination
The physical assets should be the place that restrict for everyone to enter.
The employee that could assess the physical assets should the employee that
already has authority in order to avoid the thief.
iv. Approval and authorization
All of the transaction should be approve and authorize by the employee
that could check the error and manipulate the data given.
v. Accounting
The check about the transaction, ending balance, reconciliation should be
done for the document.
vi. Personnel
The personnel should have correlation based on the procedure.
vii. Supervision
There should be the supervisor by the management for the daily
procedure.
viii. Management
The review beside of regular review should be conduct by the
management in order to check the daily procedure and system happen.
b. Conduct the Analytical Procedure
Analytical procedure could be checked the risk of misstatement that occur in the
financial statement. This procedure could check which area that not proper based on
 the trend. This procedure itself could detect the significant misstatement. And there
are six steps that should audit done while conduct analytical procedure:
i. Identify the measurement and proportion.
ii. Expectation development
iii. Perform the measurement and proportion
iv. Data analysis
v. Investigate the significant differences from the expectation
vi. Determine the influence of differences for audit plan
11. List of Findings
After conduct audit, the auditor could make the list of findings. This finding could
be the evidence while give opinion. The evidence could be the record of transactions,
observation result of auditor, or the information from the public organizations itself.
The method that commonly used in finds the evidence such as inspection,
observation, information request, confirmation, recalculation, analytical procedure or the
other technique. Should be noted that, the method choose is based on the cost of findings
and the benefit from the information.
12. Cross-Check the Findings
The list of findings will be given to the head of organization to do the cross-
check. This cross-check will invite not only the head of organization, but all of the
employees that relate to the findings.
13. Preparation of Draft Reports on Audit Results
When the cross-check did, the auditor will prepare the draft report of audit result.
The draft that made by the auditor should be same with the findings and the result of
cross-check that done before.
14. Cross-Check of Draft Reports on Audit Results
The draft report that made by the auditor will be cross-check with the head of
organization in order to make sure that everything that report suitable with the real
condition. The auditor also check the completeness of the draft before prepare as the
audit report.
15. Completion of an Audit Report
After the cross-check and check the completeness, the auditor will make the draft
become the complete audit report. This audit report is the written statement that
represents the conclusion of basic information. This audit report will be analysis of the
evidence that collected while conduct audit procedure.
16. Give the Recommendation About the Improvement of Audit Report
Based on the audit report that made by the auditor, the auditor will give some
advice and recommendation about the findings to the public organization. And this
recommendation could be used in order to improve the quality of the next financial
statement.
17. Publish the Audit Report
 After the auditor completes the audit report, they will publish. So, the
parties that need this report could use it based on their business with the public
organizations. This audit report should be open to the public. But, there is some
information that couldn’t share to public, such as the secret or contains criminal
elements.

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