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
26
c. Types of Audit
According to Boynton et. al. 2006: 8-9, there are three types of audit, namely financial audit, compliance audits, and
operational audits. Types of audits are generally demonstrate as key characteristics included in the definition of auditing. An
explanation of the types of audits will be described as follows:
1. Financial Statement of financial statements financial statement
audits related to obtaining and evaluating evidence about the reports of entities with a view to be able to give an opinion
whether these reports have been presented fairly in accordance with predetermined criteria, namely the principles generally
acceptable accounting or Generally Accepted accounting Principles GAAP. In addition, the audit logic developed for
the financial statement audit is the basis by which the auditor of further developing compliance audits, operational audits, as
well as a number of attestation services and assurance services.
2. Audit Compliance Audit compliance compliance audits
related to the activity to obtain and examine the evidence to determine whether financial or operating activities of an entity
complies with the requirements, conditions and specific rules. The criteria set out in the audit of this kind comes from various
sources. For example, management can issue a policy or
27 provisions concerning conditions of employment, participation
and pension programs, as well as conflicts of interest.
3. Operational Audit activities related to obtaining and evaluating
