3 Requirements that Must Be Fulfilled to Become an Auditor

Maintaining the quality of the auditor’s performance and audit results are required to meet the provisions of the auditor’s professional standards. Audit standards emphasize the professional quality of auditors and the way auditors take judgment and decisions when conducting audits and reporting. If you want to be an auditor or want to use audit services in a company, you need to know the requirements for becoming an auditor. Before discussing the requirements, you should be familiar with what is contained in the audit.

Get to know the audit

a. Internal Audit

An activity designed to add value and improve agency operations independently is an internal audit task. Internal audit is useful to help an agency achieve objective objectives systematically. Through a detailed approach in assessing and improving the effectiveness of the organization’s risk management, control, and process processes.

Internal audit as an intermediary to increase the effectiveness and efficiency of an organization. By providing insights and recommendations based on analysis and allegations sourced from data and business processes. Internal auditors are usually known as employees formed to carry out internal audits.

According to IAI (Indonesian Institute of Accountants) in SPAP (Public Accountant Reporting Standards), the definition of internal audit is:

“An independent assessment activity within an organization to test and evaluate the activities of the organization as a provider of assistance to management”. (1998: 322)

2. External Audit

External audits in the business dictionary are defined as audits conducted by external ( independent ) bodies that meet the requirements. Which has the purpose of determining whether accounting records are accurate and complete. In addition, whether prepared in accordance with the provisions of PSAK. Also, does the report prepared from the data present the financial position and financial results of the business fairly.

An external audit is defined as a periodic check on the books and records of an entity conducted by a third party independently. Which aims to ensure that the records have been checked properly, accurately and in accordance with the concept. The concept here is related to established concepts, principles, accounting standards, legal requirements. In addition, it provides a true and fair view of the financial situation of the body.

In addition, an external audit is interpreted as a review of the financial statements of a government or business, by someone not affiliated with the company. External audits play a major role in the oversight of corporate and government finances. This is because, they are carried out by individuals outside the company and provide impartial opinions. External audits are usually conducted regularly by businesses, and are usually required annually by law for the government.

Types of Auditors

In terms of the audit group, the audit is divided into:

a. Internal Auditor

The task of the internal auditor is to help top management oversee assets and oversee the company’s operational activities. Internal auditors work for the company they are auditing. Then, the task of the internal auditor is to audit the company’s management including the compliance audit.

b. External Auditor

External auditors usually work for institutions / public accounting firms (third parties). Which status outside the company structure and work independently and objectively. Results from external auditors are usually in the form of financial audit reports .

c. Tax Auditor

The duty to obey the taxpayer audited according to the applicable tax laws is the duty of the tax auditor. In Indonesia, it is carried out by the Directorate General of Tax (DGT) under the auspices of the Ministry of Finance of the Republic of Indonesia.

d. Government Auditor

An agency tasked with assessing the reasonableness of financial information of government agencies on the implementation of programs and the use of government-owned assets. Audits of government agencies are usually carried out by the State Audit Board (BPK) or the State Audit Agency for Development and Finance (BPKP).

Requirements to become an Auditor

If you want to be an auditor or your company needs an auditor, then you must know the requirements to become an auditor. In general the requirements for becoming an auditor are:

  1. Have sufficient technical expertise and training as an auditor
  2. Having independence in every mentality
  3. Use his professional expertise carefully and thoroughly as an auditor.

Audit activities aimed at assessing whether or not management’s accountability reports are credible. A good assessment is carried out objectively by people who are experts (competent) and careful in carrying out their duties.

  • Competent

To guarantee competence, an auditor must have expertise in the field of auditing and have sufficient knowledge of the area being audited. Auditors’ competence is shown by their educational background and experience. Ideally an auditor has an educational background (formal or certification) in the field of auditing . Whereas in experience, it is usually shown from the length of the auditor’s career in the field of auditing, or variations he conducted an audit.

If an auditor assigns an inexperienced person, that person must be supervised by an experienced senior. Auditors who audit financial statements must have an educational background, understand the preparation of financial statements and applicable accounting standards. Likewise with auditors who audit operations and compliance, which must have knowledge of the operational activities being audited. This is related to how it is implemented, as well as the evaluation criteria. If the auditor is not capable or does not have the ability, the auditor must use appropriate experts.

  • Independence

Independent, which is free from influence both on the management responsible for preparing the report and on the users of the report. This is done so that the auditor is free from the influence of the subjectivity of the parties concerned. So that the implementation and results of the audit can be held objectively.

Independence here includes independence in reality ( in fact ) and in appearance ( in appearance ). Independence in reality, shown by a mental attitude that is not affected by any party. Meanwhile, independence in appearance is shown by external circumstances which can influence other people’s opinions on auditor independence. For example a Public Accounting Firm becomes a consultant at a company or helps a company prepare its financial statements. With respect to such companies, the relevant Public Accounting Firm may not provide audit services

  • Careful and thorough

The auditor in carrying out the task must use his expertise carefully, well planned. In addition, using an appropriate approach, and provide opinions based on sufficient evidence and studied in depth. The audit institution must carry out adequate quality control, the organization is well organized. In addition, it is also included in ongoing training, the implementation of its activities is supervised properly, and the results of its work are adequately reviewed.

Accuracy is something that must be applied by auditors in carrying out their duties. Because, the results of audits carried out will affect the attitude that will rely on his decision on the results of audits performed. Then, the auditor must consider that one day he must be responsible for the results of the audit. In addition, including if he did not find the actual error in the report being audited, but failed to reveal it.

As a business owner, you must have a good financial record since the beginning of the business. Good accounting records are not only needed for the standard audit process, but also for other business purposes. For example, applying for credit at a bank, and paying taxes. Therefore, you need to make good financial statements so that you can get a reasonable opinion without exception from the auditor.

To make it easier for you to make accurate financial reports, you can use accounting software such as Journals . Journals are solutions that help your business accounting processes wherever and whenever. You only need to input business transactions, and the Journal will process them into accurate financial reports. Many other features that will facilitate the work and success of your business.

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *