Auditor External's Report

 

The Definition

            Auditor Report is a report which from a company has been audited by auditor independent.             Auditor will give their opinion about financial statement from that company.

 

The Importance Of Company has been Audited

1)      Provide additional to independent clarity on the thoroughness and assurance of financial statements   in the company.

2)      Knowing the fraud in the company

3)      Provide a basis for creditors in lending money

 

Audit Report Framework (Auditor external)

1)   Title

The auditor's report must include the title, "Report of Independent Registered Public    Accounting Firm.

 

2)   Address

The auditor's report must be addressed to the shareholders and the board of directors, or equivalents for companies not organized as corporations. The auditor's report may include additional addressees.

 

3)   Responsibility of Auditor & Management of the Company

 

a.     Management’s Responsibility of the Company

                      

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with company. generally accepted accounting principles; this includes the maintenance, implementation, and design of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

 

b.    Responsibility of Auditor

Auditors responsibility is to express  their opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with  generally accepted auditing standards. Those standards require that auditor plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.

 

The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

 

 

4)   Scope of Audit

This paragraph describes the scope of the audit conducted by the Auditor by explicitly mentioning that the audit was done as per the generally accepted auditing standards in the country. It refers to the ability of the auditor to perform an audit and provides assurance to the shareholders and investors that audit was done as per auditing standards. It should include that the audit examination of the Company’s financial reports was done, and there are no material misstatements. The Auditor shall assess the internal controls and perform tests, inquiries, and verifications of the Company’s accounts. Any limitations on the scope of work done by the auditor are provided in this section of the Auditors report.

 

5)   Opinion of Auditor

            It is the primary paragraph of the Audit report content. The Auditors give their opinion on the          financial reporting by the Company. There are four different types of opinions:

a.       Unqualified Opinion: An unqualified opinion, also called a clean opinion, is issued when the auditor determines that the financial records are free of any misrepresentations. An unqualified opinion is the best opinion given to the Company and the management. The unqualified opinion represents that the financial reports are in accordance with Generally Accepted Accounting Principles (GAAP)

b.      Disclaimer of Opinion: In cases when the auditor is unable to complete the audit of the Company due to details not provided by the Company, it will give a disclaimer of Opinion. It means that the status of the financial condition of the Company cannot be determined.

c.       Qualified Opinion: The Auditor gives a qualified opinion in case the financial records are not maintained in accordance with GAAP, but the auditors do not find any misrepresentation in the financial reports. A qualified opinion highlights the reason for the audit report being qualified. A qualified opinion is also given in the case when adequate disclosures are not made to the financial statements.

d.      Adverse Opinion: Adverse opinion on the financial report is the worst type of financial report issued to the Company. An adverse opinion is given in case the financial reports do not conform to the GAAP, and the financial records are grossly misrepresented. The adverse opinion may refer to the onset of fraud in the Company. In this case, the Company has to correct its financial reports and financial statements. The Company will have to get the statement re-audited as investors and lenders would require the Company to give financial reports free of any errors and misrepresentation.

 

6)   Basis of Opinion

This paragraph gives the basis on which the opinion was based. It should mention the facts of the grounds in the report.

 

 

7)   Signature of Auditor

            The partner of the auditor must sign the audit report content at the end.

 

8)   Place of Signature

It gives the city in which the audit report was signed

 

9)   Date of Audit Report

Let us look at a brief understanding of each heading in the audit report.

 

10)                      Date of Signature

It gives the date on which the audit report was signed.

                               

 

Example of Audit Report (Auditor external)

 

 

1)  (Unqualified Opinion)

 

 

INDEPENDENT AUDITOR’S REPORT

 

No : D1999/DAD/2021

Date : January 1, 2021

 

To Board of Directors and Board of Commusaris

PT. Dian Jaya Indonesia

Jl. Kelambir V No, 12A Medan

 

We have audited PT Dian Jaya Indonesia's balance sheet as of December 31, 2019 and 2020 and its earnings statement, retained earnings calculation, and cash flow statement for the year ended that date. Financial statements are the responsibility of the company's management.

 

Our responsibility is on the statement of opinion on the financial statements based on the audit process that we conducted.

 

We conduct auditing based on auditing standards set by the Indonesian Institute of Accountants. These standards require us to plan and carry out auditing so that we can exercise sufficient confidence that financial statements are materially free and misrepresentation. An audit process includes examination on the basis of testing, evidence material supporting the amount of amounts and disclosures in financial statements. The audit also includes an assessment of the accounting standards used and significant estimates made by the company's management, as well as an assessment of the presentation of the overall financial statements. We believe that our audit provides an adequate basis for expressing an opinion.

Menurut pendapat kami, laporan keuangan yang kami sebut di atas tersaji secara wajar, dalam semua hal yang material, posisi keuangan PT. Dian Jaya Indonesia per 31 Desember 2015 dan 2016, dan hasil usaha, serta arus kas untuk tahun yang berakhir pada tanggal tersebut sesuai dengan prinsip akuntansi yang berlaku umum.

 

 

Accounting Firm, 31 January 2021

Pinem

 

Pinem, SE., MMSI

 

 

Auditor’s reason gave (Unqualified Opinion)

The company already follows the general standards in the work alliance. The audited financial statements are presented in accordance with the accounting principles in Indonesia that are consistently stipulated in the previous report, There is no material uncertainties about future developments that cannot be foreseen or satisfactorily resolved.

 

2) (Qualified Opinion)

 

 

 

INDEPENDENT AUDITOR’S REPORT

 

 

No : D1999/DAD/2021

Date : January 1, 2021

To Yth Direksi dan Dewan Komusaris

PT. Sari Mantap Indonesia

Jl. Gaperta Ujung 130

Medan, Sumatera Utara

 

We have audited pt's financial position statements. Sari Mantap Indonesia as of December 31, 2020 as well as income statements, equity change statements and cash flow statements for the year ended on that date. Financial statements are the responsibility of the company's management. Our responsibility is on the statement of opinion on the financial statements based on your audit.

 

We conduct audits based on auditing standards set by the Indonesian Institute of Accountants. These standards require us to plan and carry out audits in order for us to have sufficient assurance that financial statements are free from material misstatements. An audit includes examination, on the basis of testing, evidence that supports the amount and disclosure in financial statements, audit also includes the interpretation of accounting standards used and the assessment of the evidence made by management, as well as an assessment of the presentation of financial statements as a whole. We believe that our audit provides an adequate basis for expressing an opinion.

 

The Company does not include lease obligations of fixed assets and liabilities in the attached balance sheet, and in your opinion, must be realized in order to be second! generally accepted accounting principles. If the lease obligation of im business is realized, fixed assets will increase by Rp. 100 000 000, , long-term liabilities of Rp 100,000 000, . Additional net income will be reduced by Rp. 10 000 000 and earnings per share will be reduced by Rp. 1,000, for the year ended that date.

 

In our opinion, except for the uninspired impact of lease obligations as described in paragraph above, the financial statements we mention above present reasonably, in all material respects, pt's financial position. Sari Mantap Indonesia as of December 31, 2001. and business results, as well as cash flow for the year ended on that date in accordance with generally accepted accounting principles.

 

Accounting Firm, 31 January 2021

 

Pinem

 

Dian Sari Islamy Pinem, SEL , Ak., CPA., CA

Reg Neg D1280484

 

Auditor’s reason gave (Qualified Opinion)

 The Auditor believes that the financial statements contain an deviation from generally accepted accounting principles that have a material impact but do not affect the financial statements as a whole.

 

 3)  (Adverse Opinion)

 

 

INDEPENDENT AUDITOR’S REPORT

 

No : D1999/DAD/2021

Date : January 1, 2021

 

Kepada Yth, Direksi dan Dewan Komusaris

PT. Islamy.Com

Jl. Kelambir V No 57, Medan.

 

We have audited pt's balance sheet. Islamy.Com December 31, 2019 and 2020 and income statement. equity change report. and cash flow statements for the year ended on that date. Financial statements are the responsibility of the company's management. Our responsibility is on the statement of the financial statements based on our audit.

 

We conduct audits based on auditing standards applied by the Indonesian Institute of Accountants, the auditing standard requires us to plan and carry out audits so that we obtain adequate assurance that the report is free from material misstatements. An audit includes examination on the basis of testing, evidence supporting the amount of amount and disclosure in the financial statements. The audit also includes an assessment of the accounting standards used and significant estimates made by management, as well as an assessment of the presentation of the overall financial statements. We believe that our audits provide an adequate basis for expressing opinions. As noted in its financial statements, the company lists factory and equipment estimates on operational values and calculates their depression based on those values.

 

Due to deviations from generally accepted accounting principles in Indonesia as outlined above, on December 31, 2019 and 2020, Higher inventory balance of Rp150 000 000 and Rp210 000 000 with the calculation of depreration costs into factory overhead based on revaluation value greater than the cost of fixed assets and fixed assets minus accumulated depreciation presented higher Rp111000,000 and Rp222 000000 compared to when presented on the basis of the base price.

 

In our opinion, due to the impact of what we describe in the paragraph above, the financial statements we mentioned above do not present reasonably in accordance with the generally accepted accounting principles, pt's financial position. Islamy.Com December 31, 2019 and 2020, business results, changes in equity and cash flow for the year as of that date.Kantor Akuntan Publik 31 Januari 2021

 

Dian

 

Drs. Dian Sari Islamy Pinem, MM

Reg Neg D 251115 NIAP : 09 0001.08

 

 Auditor’s reason gave  Adverse Opinion

The Auditor shall provide additional paragraphs to be able to explain the abnormalities of a financial statement above, which is accompanied by the impact of the resulting abnormality, on an audit report.

 

 

 

  

4) (Disclaimer of opinion) 

 

INDEPENDENT AUDITOR’S REPORT

 

No : D1999/DAD/2021

Date : January 1, 2021

 

 

To Board of Directors and Board of Commusaris

PT.Aldebaran tbk

Jl. Gagak Rimang, Jakarta.

 

We have been tasked to audit pt's financial position statements. December 31, 2020 and earnings statement. retained earnings statement, and cash flow statement for the year ended on that date. Financial statements are the responsibility of the company's management. The Company does not perform physical calculations of inventories in 2020 listed in the financial statements amounting to Rp. 950 000 000 as of December 31, 2020. Furthermore, evidence supporting the acquisition price of fixed assets purchased before December 31, 2020 is no longer available in the company's archives. Company records do not allow the implementation of other audit procedures on inventory and fixed assets.

 

Since the company does not carry out physical inventory maintenance and we cannot implement audit procedures to reassure us of the quantity of inventory and the cost of principal and the fixed acquisition price of aktva, the scope of your audit is not sufficient to allow us to express an opinion, and you do not express an opinion on the financial statements.

 

 

Accounting Firm, 31 January 2021

Elsa

Elsa SEI , Ak , CPA., CA

Rep. Nep D11

 

 

Auditor’s reason gave (Disclaimer of opinion)

no GAAP is not carrying out physical calculations of inventory and we cannot implement audit procedures to reassure us of inventory quantity and cost of principal and price of acquisition of fixed assets.