General Standar based on State Financial Inspection Standard ( SPKN )

Scope

1. This PSP sets general standards for carrying out financial checks, performance checks, and PDTT.

2. This general standard relates to ethics; independence, integrity, and professionalism; controlling bugs; competence; consideration of non-compliance, fraud and disobedience; audit communication; and documentation examination in the implementation and reporting of examination results; relationship with professional standards used by public accountants; as well as obligations Government Internal Audit and public accountant supervision state finances.

Effective Date

3. This PSP is valid and has binding legal force from the date invited.

AIM

4. The purpose of the examiner in implementing the General Standards is as a basis to be able to implement implementation standards and reporting standards effective. Thus, this general standard must be followed by the BPK and all Examiners who carry out checks based on Inspection Standards.

DEFINITION

5. For the purposes of this standard, the terms below mean the following:

a. The Supreme Audit Agency, hereinafter abbreviated as BPK, is an institution country that has the duty and authority to examine management and state financial responsibility.

b. The examiner is the person who carries out the management inspection task and state financial responsibility for and on behalf of the BPK.

c. Subject matter is matters that are examined and / or things that are become a concern in an audit assignment, which can be in the form of information, conditions, or activities that can be measured / evaluated based on some criteria.

d. The subject matter information is the result of an evaluation or the results of the measurement of the main things against the criteria.

e. Ethics is an attitude and behavior that shows willingness and the person's ability to consciously obey the rules and norms that applies in an organization

f. The BPK Code of Ethics, hereinafter referred to as the Code of Ethics, is the norm

must be obeyed by each BPK Member and Examiner while running its duty to maintain the dignity, honor, image and credibility of the BPK.

g. Independence is an attitude and action in carrying out examination to be impartial and deemed impartial to anyone, and is not affected and is seen not to be influenced by anyone.

h. Integrity is quality, character, or condition that shows unity intact, having honesty, hard work, and adequate competence.

i. Professionalism is the ability, expertise, and commitment of professions within carry out the task.

j. Professionals are things that are related to a profession that is need special intelligence to run it.

k. Professional skepticism is an attitude that includes the mind always questioning and critically evaluating evidence examination or other matters during the examination.

l. Professional considerations are the application of collective knowledge, skills, ethics, and experience of examiners in the inspection process.

m. Quality control standards are a benchmark for assessing the extent to which the inspection process runs according to inspection standards.

n. Quality control system is a set of procedures and policies applied to ensure inspection practices are in accordance with statutory standards and provisions.

o. Competencies are education, knowledge, experience, and / or skills a person has, both about examination and about certain things or fields.

p. Competent is capable or capable in the field that is mastered.

q. Experts are people who have expertise in matters or fields certain, which is needed for inspection and is not Examiner.

r. Fraud (fraud) is an act that contains an element of intent, intention, benefit yourself or others, fraud, concealment or embezzlement, and misuse of trust that is intended for obtain illegal profits that can be in the form of money, goods / assets, services, and not paying services, carried out by one individual or more than those responsible for governance, employees, or parties third.

s. Disobedience (abuse) is behavior that is less or not feasible when compared to the behavior of people who are wise and using common sense by considering the practice of public financial governance the good one.

t. Fraud risk factors are events or conditions that indicate incentives or pressure to cheat or give opportunities for cheating.

u. Early indications of cheating are symptoms (red flags) that show possibility of fraud.

V. Predication is the whole of events, circumstances at the time of the event, and everything related or related that can bring someone who have common sense, are professional, and have a level of caution, to be sure that fraud has been, is or will occur. Prediction is the basis for starting PDTT in the form of an investigative examination.

w. Audit communication is the process used by the BPK or Examiner in obtaining data and information in order collection of proof of examination and submission of examination results to the responsible party.

x. Inspection documentation is documentation of the inspection procedure that has been done, proof of sufficient and appropriate examination obtained, and conclusions drawn by the Examiner.

PROVISIONS

Ethics

6. Members of the BPK and the Examiner must carry out checks in accordance with

ethical principles as an important element in the value of accountability and hope public to the BPK and the Examiner in carrying out the examination. Independence, Integrity and Professionalism.

7. Members of the BPK and Examiners in carrying out their duties and authorities must comply with ethical principles namely independence, integrity and professionalism which is the basic values of the BPK. (Ref. Para. A1-A2)

8. Examiners must use professional skills carefully and careful, professional skepticism, and professional judgment throughout inspection process. (Para Ref. A3-A9)

Quality Control

9. The BPK must establish a quality control standard to ensure quality of inspection results.

10. In implementing quality control standards, the BPK must determine and developing a quality control system to ensure that Check according to inspection standards and regulatory requirements legislation.

11. The quality control system consists of procedures and policies to ensure obtaining high quality examination results in accordance with the standards inspection and statutory provisions.

12. The inspector must implement a quality control system at the time of assignment

to provide adequate assurance that the Examination is in accordance with inspection standards and statutory provisions, and LHP is exactly in accordance with his condition.

Competence

13. Collective examiners must have adequate professional competence to carry out inspection tasks. Professional competence is proven by professional certificates issued by authorized institutions or other documents stating expertise. (Ref: Para. A10 - A11)

14. BPK must determine the competencies needed to ensure The examiner has the appropriate expertise to carry out the assignment examination.

15. Examiners must maintain their competence through professional education the shortest continuous 80 (eighty) hours in 2 (two) years.

Use of Experts

16. BPK can use competent experts. (Ref: Para. A12)

17. In the use of experts, the BPK must believe that these experts independent, fulfilling qualifications, competent in their fields, and must documenting that belief.

Use of Examiners Outside the CPC

18. The BPK can use examiners outside the CPC and must be independent and have the necessary competencies. Competence of outside examiners CPC is proven by professional certificates issued by the institution authorities or other documents stating expertise.

Continuing Education for Experts and Examiners Outside the CPC

19. The BPK is responsible for ensuring expert staff and examiners outside the BPK involved in the inspection process meet the requirements continuing education.

Considerations for Non-compliance, Fraud, and Disability

19. The examiner must design an examination to provide confidence adequate to detect non-compliance with regulatory requirements legislation, contracts, and other influential legal products directly and materially on the subject matter / information on the principal matters examined.

Direct and material influences can be:

a. things that cause misstatements in the financial statements;

b. things that cause performance irregularities related to economic aspects, efficiency, and effectiveness;

c. things that cause shortages of acceptance and deviation administration; and / or

d. things that cause potential state / regional losses and / or losses

state / regional finance.

21. Examiners must identify fraud risk factors and assess risks there is non-compliance with statutory provisions caused by fraud (fraud) and / or disobedience (abuse). These risks must be considered as significant risks (significant risks) and the Examiner must obtain an understanding of the controls related to these risks. (Ref: Para. A13)

22. If there is a risk of non-compliance with regulatory provisions legislation that indicates fraud and disobedience significantly affect the subject matter / information on the main subject being examined, The examiner must modify the procedure to identify the occurrence fraud and / or disobedience, and determine its impact on the main thing / information on the main subject being examined.

23. Examiners must disclose non-compliance with regulatory provisions legislation that indicates fraud, disobedience, and / or state / regional losses, as well as direct and non-compliance material on the subject matter / information on the subject matter being examined in accordance with the provisions.

24. PDTT in the form of an investigative examination is only carried out when there is

adequate predication. Predictions can come from examination findings other than PDTT in the form of investigative examinations, internal and information parties external CPC. The findings or information must be tested beforehand can be accepted as predication.

Communication Examination

25. Examiners must establish efficient and effective communication throughout inspection process, so that the inspection process runs smoothly and results examination can be understood and acted upon by the responsible party responsible and / or related stakeholders. (Ref: Para. A14)

26. The examiner must use professional judgment to determine the form, content, and intensity of communication.

27. If there is a termination of inspection, the Examiner must provide an explanation in writing to the official who gave the assignment.

28. The BPK must communicate in writing the reason for terminating the examination

to the entity being examined, the entity requesting an inspection, representative institutions, and / or law enforcement agencies.

Inspection Documentation

29. The examiner must prepare adequate inspection documentation on time at all stages of examination and providing understanding clear procedures for examinations performed, professional considerations, evidence obtained, and conclusions made.

30. The examiner must prepare inspection documentation to provide clear and adequate information. Through this documentation, the Examiner others who do not have a background in knowledge of the examination can understand the nature, time, scope, and results of the inspection procedure implemented, evidence obtained in support of findings, conclusions, and examination recommendations, and the reasons behind all significant matters needed in taking professional judgment and related conclusions.

31. The BPK must develop an efficient and inspection documentation system effective in accordance with the provisions of the legislation.

Relations with the Professional Standards Used by Public Accountants

32. In the financial audit, this Inspection Standard applies the standard audits contained in the SPAP determined by the accountant professional association public, insofar as it is not regulated otherwise in this Inspection Standard.

Obligations of Government Internal Supervision Apparatus and Public Accountants in Examination of State Finance

33. Government Internal Oversight Officials that carry out performance audits and

audits with specific objectives, and public accountants who examine finances countries based on the provisions of the law must implement all relevant provisions in this Inspection Standard.

MATERIAL APPLICATION AND OTHER EXPLANATION

Independence, Integrity and Professionalism

Independence (Ref: Para. 7)

A1. The BPK needs to pay attention to personal interference with independence check it out. Personal disorders caused by a relationship and personal views may result in the examiner limiting the scope questions and disclosures or weaken findings in all the shape. The examiner is responsible for notifying officials authorized at the BPK if they have a personal disturbance against independence. Personal disturbances from individual examiners include:

a. have a connection of blood ties up, down, or right up with the second degree with the management or entity ranks checked;

b. have financial interests both directly and indirectly directly to the entity or program being examined;

c. have worked or provided services to entities or programs checked within the last 2 (two) years;

d. has a cooperative relationship with an entity or program checked; and

e. involved both directly and indirectly in object activities examinations, such as providing assistance, consulting services, development systems, compile and / or review financial statements of entities or programs checked.

Integrity (Ref: Para.7)

A2. Integrity is manifested in an honest, objective, and firm manner apply principles, values, and decisions. Interference with integrity includes among others:

a. request and / or receive money, goods, and / or other facilities both directly and indirectly from parties related to examination;

b. hamper the implementation of the inspection task for personal gain, someone, and / or class;

c. impose personal will on the party being examined; and

d. change findings or order to change findings examinations, opinions, conclusions, and recommendations on the results of the examination not in accordance with the facts and / or evidence in the Examination.

Professional Proficiency (Ref: Para. 8)

A3. Examiners must use professional skills carefully and thoroughly in determining the type of examination to be carried out, determine scope of examination, selecting methodology, determining the type and amount of evidence to be collected, or in selecting tests and procedures for carry out inspections, as well as in conducting assessments and reporting check up result.

Professional skepticism (Ref: Para. 8)

A4. The examiner must plan, carry out, and report the examination with a professional attitude of skepticism. The examiner acknowledges that the situation certain things can cause basic things to deviate from the criteria. Attitude professional skepticism means the examiner makes critical judgments with mind that always questions the adequacy and accuracy of the proof obtained during inspection.

A5. The examiner must use professional skepticism in assessing risk the occurrence of fraud is significant to determine factors or risks that can significantly affect work examiner if fraud occurs or may have occurred.

A6. The examiner must use professional skepticism about things, between others, as follows:

a. proof of examination that is contrary to other proof of examination obtained;

b. information that raises questions about the reliability of documents and responses to requests for information used as evidence examination;

c. circumstances that indicate fraud and / or disobedience; and

d. conditions that allow the need for additional inspection procedures other than the procedures required in the inspection guidelines.

Professional Considerations (Ref: Para. 8)

A7. The examiner must use professional judgment in making decision about:

a. main things / information on main things;

b. appropriate criteria;

c. parties related to the examination;

d. level of confidence;

e. scope of inspection;

f. risk of inspection;

g. the inspection procedure to be used is related to risk examination; and

h. materiality.

A8. The examiner must also use professional judgment within evaluate the adequacy and accuracy of proof of examination obtained, and steps to achieve the overall objectives of the examination have been do.

A9. The examiner must use professional judgment in making conclusions based on proof of examination obtained.

Competency (Ref: Para. 13)

A10. Professional competencies include education and experience. Competence professionals are not only measured quantitatively for how long audit experience, because it cannot describe accurately the type of experience the examiner has. The most important element for The examiner is maintaining professional skills through commitment for learning and development in all professional life examiner.

A11. Examiner assigned to carry out inspections according to standards examination must collectively have competence:

a. educational background, expertise and experience, and knowledge about inspection standards that can be applied to the type assigned inspection;

b. general knowledge about the environment of entities, programs, and activities examined (object of inspection);

c. skills to communicate clearly and effectively, both verbally or writing; and

d. skills that require special knowledge in the field certain according to the inspection carried out.

Use of Experts (Ref: Para. 16)

A12. Experts can be used to advise the Examiner or become part of the Examining team.

Considerations for Non-compliance, Fraud, and Disobedience (Ref: Para. 21)

A13. The examiner only has an interest in the initial indication of fraud material impact on opinions or conclusions. Though The examiner discovers the initial indication of fraud, the inspector is not authorized to declare fraud has occurred because of the term fraud is the realm of law.

Communication Examination (Ref: Para. 25)

A14. The examiner communicates matters related to the inspection process, including the purpose of inspection, scope of examination, time of inspection, inspection criteria, examination findings, and difficulties or limitations encountered during the examination. Special PDTT in the form of investigative examinations,Examiners can limit communication about matters related to inspection process.

source : SPKN 

 www.bpk.go.id