Substantive testing,

computer-assisted audit
techniques and audit
programmes
Audit & Atestasi – Kelompok 4
Fadhilla Nuansa | 1506700695
Ferry Santoso Sitinjak | 1506810332
Riri Aprianti | 1506810742
Four phase of financial
statement audit
Substantive testing, computer assisted
audit techniques and audit programmes

 Substantive testing of transaction, acount balances and

disclosure

ISA 330 paragraph 4~definition substantive procedure

and test of controls

 Why substantive tests should always be performed?

“Judgment and inherent limitation”

 Planning feedback

ISA 315 paragraph 31 and A 130

Setting objective before designing a
programme of substantive tests

Designed to prove the validity of financial statement

assertions of material account balances and transaction
classes
Case Study 10.1
Powerbase plc: the substantive audit programme
Case 10.1: Introduction
 Produksi peralatan untuk industri energi

 Sistem pembelian dan trade payable terkomputerisasi

 Audit team sudah yakin/puas dengan sistem pembelian dan trade payable perusahaan.

 Interim audit untuk periode 6 bulan yang berakhir pada tanggal 30 November 2010.

 Financial press:
Case 10.1 (Cont’d)
 You asked Bill Chives, a junior member of staff who has only
recently joined your firm of auditors to prepare substantive
audit programme in the purchases and trade payable area and
you are reviewing the programmes prepared by him

 Purchases: Interim Audit

Programmes Steps
Cheque payments (a (a) Agree to invoice for goods received
sample) (b) Agree to goods received notes
(c) Check calculations and additions in invoice
Purchase daybook (a) Select entries at random, examine invoice and CN for price,
calculation, authorization, etc
(b) Check posting to trade payable
Purchase ledger (a) Test check the entries into the books of prime entry, checking
the additions and balances carried forward
(b) Enquire all contra accounts
Conclusions Note any conclusions covering any weakness and errors discovered
during the above tests for possible inclusions in management letter
Case 10.1 (Cont’d)
 Audit objectives purchase transactions:
evaluate whether the accounts affected by the
purchase/ acquisition of goods and services are fairly
presented in accordance with accounting standards

 Timing: Interim for the 6 months ended Nov 30, 2010

(ISA 330 para. A.11, A.12)
Case 10.1 (Cont’d)
 Audit objective yang penting dalam pembelian adalah bahwa transaksi pembelian
seluruhnya tercatat dalam laporan keuangan Perusahaan (Completeness).

 Audit Program yang dibuat Bill Chives

 Audit program tidak berhasil mengakomodir objective yang ingin dicapai dari audit yang
dilaksanakan.

Programmes Comments

Cheque payments Pemeriksaan validasi dan akurasi contoh pembayaran transaksi

pembelian. Tidak memenuhi audit objective Completeness.
Purchase daybook Hanya membuktikan bahwa purchase daybook didukung oleh invoice
dan atau credit notes (Occurrence). Tidak memenuhi audit objective
Completeness.
Purchase ledger Memilih sampel purchase ledger account dan melakukan tes entries ke
daybook, cash book, dll. Hanya membuktikan bahwa entry sesuai
dengan pencatatan pada daybook dan cash book. Prosedur ini tidak
dapat membuktikan bahwa akun ledger mewakili seluruh entries yang
seharusnya tercatat.
Conclusions Seharusnya berisi kesimpulan adequacy sistem pembelian, serta
akurasi (accuracy) dan kelengkapan (completeness) transaksi
pembelian.
Case 10.1 (Cont’d)
 Asumsi:
 Sudah dilaksanakan Test of Control dan pengendalian dinilai bekerja
secara efektif. Auditor yakin dengan pengendalian internal klien
untuk siklus pembelian.
 Tidak ditemukan defficiencies pada control environment Perusahaan

 Substantive Test of Transaction:

 Analytical Procedure
Case 10.1 (Cont’d)
 Substantive Test of Transaction – Test of Detail
The Use of Audit Software
 General audit software

 Software developed for use in specific industries

 Statistical analysis software

 Expert system software

Directional Testing
 Another audit technique

 Detecting over and understatement

debit tested for overstatement

credit tested for understatement

Communication of Audit Matters to Thosen Charged
With Governance ( Management Letter)

 ISA 260 – paragraph 9

“objective of communicating with those charged with
governance, one of which is:
(c) To provide those charged with governance with timely
observations arising from the audit that are significant and
relevant to their responsibility to oversee the financial
reporting process”.

 Further matters of importance relating to management

letter
Audit Management with Computer
 Risk assessment, planning and allocation of staff and
other resources to the audit assignment

 Information retrieval and analysis

 Interpretation and documentation of results

 Review and reporting activities

 Manual and checklists on computer file