Board of Directors BoD

24 of determining and reporting on the degree of the correspondence between the quantifiable information and established criteria.” Boyton and Johnson 2006: 6 state that The Report of The Committee on Basic Auditing Concept of The American Accounting Association Accounting Review, Vol.47 stated auditing as : “Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and event to ascertain the degree of correspondence between those assertions and established criteria and communicating the result to interested users.” Definition of auditing according Agoes 2008: 3 are: “suatu pemeriksaan yang dilakukan secara kritis dan sistematis, oleh pihak yang independen, terhadap laporan keuangan yang telah disusun oleh managemen, beserta catatan-catatan pembukuan dan bukti-bukti pendukungnya, dengan tujuan untuk memberikan pendapat mengenai kewajaran laporan keuangan tersebut .” Meanwhile, according to Mulyadi 2010: 9, the definition of auditing is: “suatu proses sitematik untuk memperoleh dan mengevaluasi bukti secara objektif mengenai persyaratan-persyaratan tentang kegiatan dan kejadian ekonomi, dengan tujuan untuk menetapkan tingkat kesesuaian antara persyaratan-persyaratan tersebut dengan kriteria yang telah ditetapkan, serta penyampaian hasil-hasilnya kepada pemakai yang berkepentingan .” Based on the description above definition of auditing, it can be concluded that auditing is a process of examination of the systematic of the evidence relating to the events of economic business recorded in the financial statements of the auditee to 25 achieve the degree of correspondence and compare it with the standards and criteria that exist with goal to provide opinion on the fairness of the financial statements and then communicating the results to the users of financial statements auditee.

b. Objectives of Audit

Public Accountants Professional Standards SPAP, PSA 02 SA 110, IAI, 2001: 110.1, stated that the purpose of the audit of financial statements by an independent auditor general is to express an opinion on the fairness, in all material respects, the financial position , results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles. Meanwhile, according to Boynton et. al. 2006: 231 specific audit objectives are the assertions of management, managements assertions as a guideline auditor to plan the audit evidence collection. The five managements assertions outlined in Generally Accepted Auditing Standards GaAs are as follows: 1. Existence and Occurance 2. Completeness 3. Right and Obligation 4. Valuation or Allocation 5. Presentation and Disclosure