FINANCIAL AUDIT ON FIXED ASSETS ACCOUNT OF PT. POLIM AS OF 31 DECEMBER 2013

Abstract

This research report titled “ Financial Audit on Fixed Assets account of PT.Polim for the year ended 31 December 2013”. The overall objective of the research is to assess whether or not the records of fixed assets account PT.Polim have been in line with the standards of financial reporting in Indonesia. The reason to do this research is that the importance of a proper records of property and equipment affect the overall amount of assets in the balance sheet of the company. Research method being conducted is the audit fieldwork for the account. The auditor gain information about how the company run its business and operated in the industry. Then, auditor obtain the statement of financial position and conduct the audit procedure applicable for the account. Auditor also do some inquiry related to the nature of account and the issue arise. Throughout the audit fieldwork, auditor believe that all fixed assets reported in the company's financial statements as of 31 December 2013 is exist. All transactions related to acquisitions and disposals of fixed assets have been recorded correctly in accordance with the applicable rules of PSAK 16. Auditor has also ensre that all fixed assets as reported in the financial statements as of 31 December 2013 is the property of the company and the company has the authority to use these assets for its business purposes. Auditor figure out that management recorded the fixed assets in accordance with the regulations set forth in PSAK 16 and determination of useful life in acccordance with Indonesian Income Tax Law (UU PPh) no. 36 of 2008. Yet, all fixed assets are recognized by PT.Polim been presented properly in the correct section, the non-current assets section in the financial statements as of 31 December 2013. Based on analysis and result of evaluation, auditor has purposed an adjustment journal entry to correct the amount in the statement of financial position. Since the miscalculation occur by the accounting system error, auditor also provide advice relating to the improvement of the company's accounting system to prevent any greater error to occur.