Audit Objectives To obtain reasonable assurance whether the Financial Statements are free of material misstatement To express the opinion whether the F/S are fairly presented in accordance with the Indonesian GAAP

Audit Scope Examination of the historical financial statements in accordance with Auditing Standards established by the Indonesian Institute of Accountants AUDIT

Audit Scope (continued) AUDIT AUDITING STANDARDS SPAP AUDIT is performed in accordance with the AUDITING STANDARD

Audit Process PLANNING FIELDWORKSUMMARIZING AUDITOR’S OPINION

Audit Result AUDITOR’S OPINION QUALIFIED UNQUALIFIED DISCLAIMER ADVERSE

Audit Planning Framework Audit Process Client’s Expectations Identified Business Risks Identified Fraud Risks Identified Other Audit Risks DEVELOP AUDIT STRATEGY/PROGRAM AUDIT MATERIALITY LEVEL AUDIT TIME TABLE & ESTIMATED HOURS AUDIT WORK PROGRAM Interim F/S ENGAGE. TEAM STRUCTURE & JOB ALLOCATION STRATEGY/ PLAN FOR SIGNIFICANT ISSUES

Audit Planning Documentation  Minutes of Meeting  Audit Engagement Letter (AEL)  Estimated Audit Time and Chargeable Audit Fees Audit Process Administrative Document Strategic Planning Document  Audit Planning Memorandum (APM)  Audit Work Program

Audit Planning Documentation (cont’d)  Fraud Risk Identification Form  Going Concern Assessment Form  Litigation, Claim & Assessment Form Audit Process Risk Tool Document

Audit Fieldwork Framework Audit Process SIGNIFICANT PROCESS IDENTIFICATION WALKTHROUGH EFFECTIVE DESIGN ? TEST OF CONTROL SUBSTANTIVE TEST EFFECTIVE IMPLEMENTATION ? YES NO YES MINIMUM AUDIT PROCEDURES AUDIT WORK PROGRAM

Audit Fieldwork (cont’d) Audit Process TEST OF CONTROL FRAMEWORK SIGNIFICANT CYCLE WALKTHROUGH DIVIDED INTO SEVERAL PROCESS DEFINE CONTROL’S ATTRIBUTES OF EACH PROCESS COMPLIANCE TEST OF CONTROL’S ATTRIBUTES DOCUMENT SAMPLING

Audit Fieldwork (cont’d) Audit Process SUBSTANTIVE TEST FRAMEWORK YEAR-END FINANCIAL STATEMENTS MATERIAL ACCOUNT IDENTIFICATION MATERIAL AMOUNT? SUBSTANTIVE TEST NATURE ACCOUNT DESCRIPTION YES NO AUDIT WORK PROGRAM MATERIALITY LEVEL

Audit Fieldwork (cont’d) Audit Process SUBSTANTIVE TEST FRAMEWORK (Cont’d) SUBSTANTIVE TEST AUDIT WORK PROGRAM F/S ACCOUNT DEFINE AUDIT OBJECTIVES RELATE TO F/S ASSERTIONS DETERMINE AUDIT PROCEDURES

AssertionDefinition ExistenceAn asset or liability exists at a given date. Rights and Obligations An asset or liability pertains to the client at a given date. CompletenessNo material unrecorded assets, liabilities, transactions, or events, or undisclosed items. Audit Fieldwork (cont’d) Audit Process FINANCIAL STATEMENT ASSERTIONS

AssertionDefinition OccurrenceA transaction or event took place that pertains to the client during the period. ValuationAn asset or liability is recorded at an appropriate carrying value. MeasurementA transaction or event is recorded at the proper amount and revenue or expense is allocated to the proper period. Audit Fieldwork (cont’d) Audit Process FINANCIAL STATEMENT ASSERTIONS (Cont’d)

AssertionDefinition Presentation and Disclosure An item is disclosed, classified, and described in accordance with the applicable financial reporting framework. Audit Fieldwork (cont’d) Audit Process FINANCIAL STATEMENT ASSERTIONS (Cont’d)

Audit Fieldwork (cont’d) Audit Process AUDIT OBJECTIVES F/S ASSERTION AUDIT PROCEDURES AUDIT OBJECTIVES F/S ASSERTION AUDIT PROCEDURES AUDIT WORK PROGRAM CONTENT

Audit Fieldwork (cont’d) Audit Process ADDITIONAL AUDIT PROCEDURES  Related Party Transactions Analysis (by using Related Party Transactions Practice Aid)  Related Party Transactions Identification  Perform Audit Procedures for assuring the proper accounting and disclosure of related parties transaction  Work of Expert Analysis (by using Work of An Expert Form)  Perform Minimum Procedures for using the work of expert as our audit evidence

Audit Fieldwork (cont’d) Audit Process WORKING PAPER (WP) DOCUMENTATION STANDARD  Tickmark Standard  Indexing Standard

Audit Summarizing Audit Process  Summary of Audit or Client’s Adjustment or Reclassification  Subsequent Review Analysis  Financial Statements Review Tool  Audit Summary Memorandum (ASM)  Findings and Recommendation Report (Management Letter)  Management’s Representation Letter  Disclosure, Securities & SPAP Checklist Documentation: