AUDIT REPORT 3B-D4 (ANDIKA, HARIMAN, FAHRUL, ISMAIL, ROGAS, ALI)

AUDIT REPORT

GROUP BY :

Andika Faizal Rezky (46110010)

Muh. Hariman Suwadi (46110029)

Muh. Fahrul (46110030)

Ismail (46110048)

Rogasianus Pasanda (46110049)

Mochd. Ali Bin Azis (46110052)

PT. Charoen Pokphand Indonesia Tbk

Address:
Head Office & Factory
Jalan Ancol VIII No. 1
Ancol Barat
Jakarta 14430
Phones – (021) 6919999 (Hunting)
Fax. – (021) 6917325, 6907324
Telex. – 42659 POKPHAND IA
Cable. – POKPHAND JAKARTA
E-mail. – charoen@idola.net.id
PO.BOX – 83 JKT

PT Charoen Pokphand Indonesia Tbk (the "Company") is a producer of animal feed, Day Old Chicks and processed foods in Indonesia. The Company was founded in 1972 with the first major animal feed factory in Jakarta to produce quality animal feed.

Currently, the Company has focused its efforts on agro-business activities that include poultry business, from producing quality animal feed, breeding fast growing and disease resistant and produce high quality processed chicken products.

The meaning of Audit

            Audit is a systematic process undertaken by an independent and competent auditors by gathering and evaluating audit evidence has been collected and aims to establish the correspondence between the statement with the criteria established by stating an opinion or opinions about the fairness of the financial statements of the company.

1. Type of audit (audit of financial statements, audit compliance, operational audits)
2. Type of auditor (independent auditors, government auditors, internal auditors)

Audit of financial statements (financial statement audits)

            Audit of the financial statements relating to the activities of obtaining and evaluating evidence about the entity reports in order to be able to give an opinion on whether these reports have been presented fairly in accordance with the established criteria, the accounting principles generally accepted.

Independent auditor

Independent auditor is the auditor professionals who provide services to the general public, especially in the field of audit of financial statements made ​​by his client. The audit is intended primarily to meet the needs of users of financial information such as lenders, investors, prospective creditors, potential investors, and government agencies (especially the tax authorities)

Audit Report

            The audit report is a formal tool of a auditor to communicate the conclusions reached regarding the audited financial statements to interested parties. Standard form of audit reports (standard unqualified audit report) - is a report issued by an auditor when auditing all conditions are met, no errors found significant misstatement that lay not repaired, as well as the auditor's report contains the opinion that the financial statements are presented fairly in accordance with GAAP / FRS.

1.      Report.

Auditing standards require each report titled report, and also listed in the title the word independent. For example, the proper title is "independent auditors 'report,'" the report of the independent auditor, "or" opinion of the independent accountants. "

2.      Address the audit report.

This report generally addressed to the company, the shareholders or the board of directors of the company.

3.      Introductory paragraphs.

The first paragraph of the report suggests three things: First, make a simple statement that the CPA firm has conducted the audit. Secondly, this paragraph states that the audited financial statements, including balance sheet date as well as the inclusion of the accounting period income statement and cash flow statement. Third, introductory paragraph stating that the financial statements are the responsibility of management and the auditor's responsibility is to express an opinion on these financial statements based on the audit.

4.      Scope paragraph.

The scope paragraph contains factual statement of what the auditor during the audit process

5.      The opinion paragraph.

The last paragraph in the audit report provides a summary of the auditor's standard form based on the results of the audit process has been done.

6.      KAP name.

The name will identify the CPA firm or practitioner which has been carrying out the audit process

7.      Date of the audit report.

Exact date to be included in the audit report the date on which the auditor completed the audit procedures on-site examination of the most important

Type Auditors Opinion

            The financial statements-balance sheet, profit and rubies, retained earnings statement, and statement of cash flows-have been complete. All three aspects of the general standard GaAs / SPAP has followed in the audit assignment. Sufficient audit evidence has been collected, the financial statements have been prepared in accordance with generally accepted accounting principles. There is no situation in which the auditor feels the need to add an explanatory paragraph or modify the sentence in the audit report. An audit process has been carried out with satisfactory results and financial statements are presented fairly, but auditors found it necessary to provide additional information.

Auditors concluded that the overall financial statements have been presented with reasonable indeed, but  audit has been restricted material or any deviation from generally accepted accounting principles at the time of preparation of the financial statements. Auditor concludes that the financial statements are not presented fairly (adverse), the auditor can not give an opinion as to whether the financial statements are presented fairly (disclaimer), or the auditor is in a position that is not independent (disclaimer).

Five Categories of Audit Reports

1.      Unqualified opinion

2.      Unqualified opinion with explanatory language

3.      Qualified Opinion

4.      Adverse opinion

5.      Disclaimer opinion

Stages of Audit of Financial Statements

1.      Receive and retain clients

Early stages of an audit of financial statements involves a decision to accept (or reject) the opportunity to be the auditor of new clients or to continue as auditor for existing clients.

2.      Audit plan

The second phase of the audit requires the development of an audit strategy for the audit and determining the scope of the audit. Planning is important that an audit engagement can be run successfully. Audit planning involves critical elements of business and industry understanding, materiality, audit risk, audit assertions and evidence, as well as consideration of value-added services.

3.      Carry out audit testing

The third phase of the audit is to perform audit testing. This stage is also called as the implementation of field work (field work), because testing is usually done on the client's permission. The main purpose of this phase is to obtain evidence regarding the client's economic conditions, internal control effectiveness, and fairness of the financial statements of the client

4.      Report findings

And the fourth stage is the last stage of the audit report findings. Essential elements of any communication regarding the audit is the audit findings. The audit report is an important part of every engagement.

Example audit report