Key Audit Matters Implementation on Public Sector Audit Report: Case Study of the Audit Board of Indonesia

DOI

10.2991/assehr.k.210531.047How to use a DOI?

Keywords

Audit, Audit Opinion, Financial Audit, Key Audit Matters, Public Sector Audit

Abstract

The Audit Board of Indonesia’s (BPK’s) opinion is recognized as one of the assessments of the performance of state financial management performed by the Indonesian government, both from the central government and regional government. Government financial reports have different functions and characteristics from private financial reports. This affects the characteristics and functions of public sector audits. This study examined whether ISA 701 concerning Key Audit Matters (KAM) issued by the International Auditing and Assurance Standards Board (IAASB) is applicable to BPK opinion, as an effort to overcome the information gap between auditors and users of audit reports. This study did not aim to find the best solution to overcome the information gap between auditors and readers of audit reports. This study elaborated standards with common practice used by leading public accounting firms to implement these standards, and then adjusted to the nature and characteristics of audits applied to the public sector. This study also found that ISA 701 provides constraints, which then become opportunities, in its application. The conclusion of this study is that KAM is applicable to public sector audits, by making adjustments according to the nature and characteristics of the audited object.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nathalya Tampubolon
AU  - Robert P. Tobing
PY  - 2021
DA  - 2021/05/31
TI  - Key Audit Matters Implementation on Public Sector Audit Report: Case Study of the Audit Board of Indonesia
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 374
EP  - 379
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.047
DO  - 10.2991/assehr.k.210531.047
ID  - Tampubolon2021
ER  -