This Paper discuss about operational audit (audit operasional).

Audit performance audit covering economy, efficiency and effectiveness is essentially an extension of the conventional audit (conventional audit) which includes compliance auditing and financial auditing. One of the things that distinguishes the performance audit and audit is in the conventional audit reports.

In a conventional audit, the audit is in the form of opinion (opinion) auditors are independent and objective about the fairness of financial statements in accordance with the criteria established standards, without providing repair recommendations. While the performance audit, not only provides conclusions about or based on the audit stage has been done, but also equipped with recommendations for future improvements. Audits of management performance and commented on how they perform their duties economically, efficiently and effectively is not a new topic today, but until now the results of performance audit is always stored and considered only as a course in organizational considerations.

The growing discontent and the increasing demands for accountability from the management of public companies resulted in the need to consider the possibility of a performance audit as a mandatory.

Traditionally the performance audit has been conducted through an internal audit department of an entity. The results of this audit is only saved by the entity without any further action. Internal auditors were asked to review an area of the entity and report back to management about how economically, efficiently and effectively managed the area during the period examined. Management seemed reluctant to disclose these results to the members of these entities or the general public. This is a big question, should the results or conclusions derived from this audit is submitted or disclosed to the people concerned and also to the general public, so they can assess how the performance of the management.


Auditing is a profession and as well as other professions, he was dynamic, not static. He will develop and adapt itself to the needs of users of the profession. Current dissatisfaction with the results of financial audit occur everywhere, even in developed countries though, resulting in what is called the “expectation gap” that is the difference between what is done by auditors and what is desired by the user of the audit report. This happens because the audit of financial statements by auditors only express an opinion on the accounts of the financial statements alone. Whereas users of financial statements information to ensure that the audited accounts accurate, fair, no cheating, and can be used for future projections.

Blair (1990) clarify the functions that are not performed by the audit, the audit is not a guarantee of continuity of the company in the future. The results of the audit is not an opinion on the economic, efficiency or effectiveness of management does not also guarantee that no fraud or breach of rules. This comment is very interesting, because it is a reflection of how public expectations accounting services should be done. When this came the desire from some users of financial statements information that an accountant should comment on management performance during the period of observation, as well as accuracy of reporting for financial statements of the company.


Operational audit is a systematic process to evaluate the efficiency and effectiveness of an organization’s activities in the process to achieve these goals, and frugality are organizations operating in manjemen control and report to the people the right of the results of these evaluations and recommendations for improvement.

  • The process of systematic

As the financial audit, operational audit regarding a series of steps or procedures are logical, structured, and organized. These aspects include good planning, and acquisition and objectively evaluate the evidence relating to the audited activity.

  • Evaluate the organization’s operations

Evaluation of these operations must be based on several criteria established and agreed upon. In the operational auditing, the criteria are often expressed in the form of performance standards set by management. However, in some cases, standards may be set by a government agency or by the industry. These criteria are often less clearly defined than the criteria used in the audit of financial statements. Operational audits to measure the degree of correspondence between actual performance and criteria.

  • Efficiency, effectiveness, and economic

Efficiency is used to assess whether the best use of resources an organization that is used to achieve its intended purpose, while effectiveness is used to assess how well the policies of the organization to achieve goals. Efficiency and effectiveness are two closely interrelated with each other, could have a policy that the organization is very efficient but not effective vice versa. Economical means getting the quality and quantity of physical resources and human beings who deserve the proper time and lower costs.

  • Reporting to the people the right

Internal auditors usually report to management or the individual or entity requesting the audit of how efficient, effective or economically any part or the work programs have been implemented. The findings of performance audits is very rarely disclosed to all parts of the organization any more to the general public. Whereas the results of this audit can be very needed by the parties other than management, such as the wider community who directly or indirectly related to the company. Meanwhile, the board or audit committee is a party receiving a copy of the operational audit reports.

  • Recommendations repair (By default the Third Report of Audit and Performance Reporting Standards)

Results from operational audits can be very useful recommendations for the management to determine and assess the policies and activities of the company if it is on time or needed repairs that would affect the company’s survival.


Management audit report can be used as supplementary information from the company’s financial statements. There are several benefits to be gained if this performance audit reports to be provided by the company’s mandatory.

  1. Providing the company will more transparent so that outside parties can follow the development of companies with better firms.
  2. Management audit will trigger the company to be careful in managing the company.
  3. Interests of society (especially investors) more protected so that the investment and business climate will be more conducive.


According Widjayanto Nugroho (1985:23-24) there are some limitations of operational audit:
1. Time
Time becomes a very limiting factor, because the auditor must provide information to management quickly, or at least time to solve the problem at hand. Operational audits should be done regularly to ensure that important issues do not become chronic in the company.

2. Auditor expertise
Many complained of a lack of knowledge of the operational auditors karea impossible for an auditor to know and master the various business disciplines. Operational auditors only more expert in the field of audit than in the field of business.

3. Cost
Cost is also a limiting factor, because it was of course the audit costs should be less than the amount that can be saved. Therefore, the auditor should ignore the small problems that may be costly if further investigation.


1. Choosing auditee

As in many other activities within an entity, the operational audit of the budget constraints affected by bias or kehemaatan. Therefore, the resources for the operational audits should be used with the best. Auditee election began with a preliminary study or survey of the candidates in the auditee entities to identify activities that have the highest potential for audit in terms of improving effectiveness, efficiency, and effectiveness of operations. In essence, the study is a preliminary screening process produces aka auditee ranking of candidates. The starting point of this preliminary study is to gain a comprehensive understanding of the organizational structure of the entity and the characteristics of its operations. In addition, auditors must also understand the industry where the entity operates and the nature and extent applicable government regulations. Furthermore, attention is focused on activities, units, or functions to be audited. Understanding of the auditee candidates obtained by:

  • Reviewing the background of the archive data every auditee
  • Review the facility to ensure the auditee how auditee achieve its objectives
  • Learn about the relevant documentation such as auditee operations manual of policies and procedures, flow charts, performance standards and quality control, and job descriptions
  • Interviewed the manager of the activity areas of a particular problem (often called the entry interview)
  • Applying analytical procedures to identify trends or unusual relationship
  • Conduct examination (or testing) a mini audit to confirm or clarify understanding of the auditor of potential problems

Understanding the auditor of each auditee should be documented through a questionnaire that was filled with complete, flow charts, and narrative notes.
Based on this understanding, the auditor prepares a report or memorandum of preliminary studies, which summarizes all the findings and include recommendations about what should be audited auditee. This report is only used by the internal auditing department and is not intended for management.

2. Planning an audit

A careful audit planning is very important both for effectiveness and efficiency of operational audits. Planning is especially important in this type of audit is very diverse because of operational audits. The main basis of the audit planning is the development of audit programs, which must be made in accordance with the auditee situation encountered in the preliminary study stage of the audit. As the financial audit, audit program contains a set of procedures designed to obtain evidence relating to one or more goals. The evidence reviewed usually based on sample data. Thus, in planning the audit considered gharus techniques using statistical sampling. In addition, auditors should also determine if the techniques of computer assisted (computer assisted techniques) would be cost-efficient.

Planning audit also includes the audit team selection and scheduling of work. This audit team must be composed of auditors who have the technical skills needed to meet the audit objectives. Jobs must be scheduled in consultation with the auditee to have the maximum cooperation from the auditee personnel during the audit.

3. Conducting audits

During perform the audit, auditors extensively seeking the facts related to the problems identified in the auditee during the preliminary study. Implementation of the audit is the audit phase of the most time consuming operations in the audit. This stage is often referred to as conduct in-depth audi (in-depth audit).

In an operational audit, auditors rely heavily on the submission of questions and observations. The usual approach is to develop a questionnaire for the auditee and use it as a basis for interviewing auditee personnel. From the filing of the question, the auditors expect to get opinions, comments, and suggestions about solving the problem. Effective interview is very important in the operational audit. Through observation of the auditee personnel, the auditor will detect inefficiencies and other conditions that contribute to this problem.

Auditors also have to use the analysis in the operational audit. For this purpose, the analysis must involve the study and accrual of performance measurement in relation to certain criteria. These criteria can be developed internally by entities such as productivity and budget targets set or, these criteria can come from other entities or industry standard form derived by the auditors of the audit, previous audits of similar activities. This analysis can provide the basis for determining the extent to which the auditee meets specified goals.

Work performed, findings, and recommendations should be documented in working papers. as in the audit of financial statements, working papers is a major supporter of the auditor’s report. Auditor a responsibility (in-charge) is usually responsible for reviewing the working papers both during and upon completion of the examination. Review during the audit is useful in monitoring progress, while at the end of the audit review to ensure the quality of work as a whole.

4. Report findings to management

Operational auditing is similar to the types of other auditing because the end product of this audit is the audit report. However, there are many unique situations related to the reporting of operational audits. For example, in contrast to the standard language contained in the auditors in the audit report on financial statements, the language in the audit report for each operation varies auditee. The report should include:

  • A statement of the purpose and scope of the audit
  • General description of the work performed in the audit
  • Summary of findings
  • Improvement recommendations
  • Auditee comments

The concept of this report is usually made by the auditor in charge. The concept was then discussed with the manager of the audited units. This discussion meet several important goals: (1) gives the auditor an opportunity to test the accuracy ketpatan findings and recommendations, and (2) allow the auditor to get auditee comments for inclusion in the report. This initial concept further revised as necessary, so that the final draft can be prepared.

In some cases, recommendations are probably only suggest the need for further studies on the problem at hand. Inclusion is the auditee comments are optional. usually, the comments are included only if the auditee does not accept the findings and recommendations.

Auditors findings basically produce constructive criticism. At the time of writing the report, auditors should be sensitive to the reaction of the recipient. If the language is not really attack, then the response of the recipient kemungkina report will be more positive. Usually, a copy of the operational auditing reports sent to senior management and the audit committee. If long and detailed report, the report can be started with a complete overview (executive summary) of the findings and recommendations.

5. Follow up

Last stage or stages of follow-up (follow-up phase) in the operational audit is a stage for auditors to follow up the auditee responses to audit reports. Ideally, policy should require that the entity audited unit managers to report in writing during a specified period of time. However, this follow-up should also include determining the feasibility of the actions taken by the auditee to implement recommendations. 440 IIA standards of practice states that internal auditors should follow up to ensure that appropriate action has been taken based on the reported findings. The failure of auditors to receive the proper response should be communicated to senior management.


A. General Standards

1. General Standard First (Requirement ability or Keahlihan)

“The staff assigned to perform the audit should collectively have sufficient professional skills for the task required”

With this standard, all organizations or agencies responsible for auditing that any audit carried out by staff who collectively have the knowledge and skills adequate to the task of the audit. Staff should have an intimate knowledge of government auditing, the unique circumstances of the audit, and the relation with the nature of the type carried out.

2. Second General Standard (Independence)

“In all matters related to audit work, organization or institution and the auditor’s audit both the government and public accountants, must be independent (in the organization and personally), free from interference ilndependensi private and outside the private external), which may affect independence, and should be able to maintain the attitude and appearance of an independent “

With this second general standards, organization or institution and its auditors audit responsibility to maintain independence so that opinions, conclusions, or the consideration of audit recommendations considered by impartial third parties who have knowledge about it.

3. Third General Standard (Use carefully proficiency and thorough)

“In the implementation of the audit and the preparation of its report, the auditor must use professional skills carefully and thoroughly”

4. Fourth General Standard (Quality Control)

“Any organization or institution to carry out audits audits in accordance with the SAP system must have adequate internal controls, and quality control system should be reviewed by other parties who are competent (external quality control)”

B. Audit Field Work Standards and Performance

1. First Field Work Standards (Planning)

“Work must be adequately planned”
In planning the examination, examiners should define the purpose of inspection, and examination of the scope and methodology to achieve goals such examination. The purpose, scope, and methodology of inspection is not determined separately. Examiner to determine these three elements together. Planning is an ongoing process during the examination. Therefore, the examination should consider making adjustments to the objectives, scope and methodology of the examination during the examination performed.

2. Employment Standards Officer Second (Supervision)

“Staff should be supervised (supervised) with good”
Supervision involves directing the activities of inspectors and others (such as experts who are involved in the examination) so that objectives can be achieved examination. Elements of supervision include providing instruction to staff, providing the latest information about significant problems encountered, the implementation of Review for the work performed, and the provision of fieldwork training (on the job training) are effective. Supervisors must make sure that the staff really understand about the inspection work to be done, why the work to be done, and what is expected to be achieved. For experienced staff, supervisors can give the main points of the scope of work inspections and submit details to the staff. For the less experienced staff, supervisors should provide guidance on analyzing techniques and how to collect data.

3. Third Field Work Standards

The third implementation of the standard statement is: “The evidence is sufficient, competent, and relevant must be obtained to be an adequate basis for the findings and recommendations of examiners”.
In identifying sources of potential data that can be used as evidence of inspection, inspectors should consider the validity and reliability of the data, including data collected by the audited entity, data compiled by inspectors, or data provided by third parties. Similarly, the adequacy and relevance of such evidence.

4. Fourth Field Work Standards (Documentation Examination)

Statement of the fourth implementation of the standards is: “The Coroner must prepare and maintain inspection documentation in the form of paper checks. Examination of documents relating to planning, implementation, and reporting inspection should contain enough information to allow an experienced examiner, but did not have a relationship with these checks can ensure that the examination of documents could be evidence that supports findings, conclusions, and recommendations examiner “

C. Performance Audit Reporting Standards

1. First Reporting Standards (Forms)

“Auditors must make a written audit reports to communicate the results of any audit”
The need to implement the accountability of government programs require that the audit reports are presented in written form. Written report serves to:

  • Communicate the audit results to government officials, the authorities based on laws and regulations in force,
  • Create audit avoid misunderstanding,
  • Create audit hasl as material for corrective action by relevant agencies,
  • Facilitate the follow-up to determine whether appropriate corrective actions have been carried out

2. Second Reporting Standards (Content Report)

The second reporting standard statement is: “Report results of the examination should include”:

1. statement that the examination conducted in accordance with Inspection Standards
2. objectives, scope, and methodology of investigation
3. results of inspection findings, conclusions, and recommendations
4. response officials responsible for the results of the examination
5. reporting of confidential information (if any)

3. Third Reporting Standards

The third reporting standard statement is: “The report should hasilpemeriksaan timely, complete, accurate, objective, convincing, and clear, and short as possible”.

4. Fourth Reporting Standards (Publishing and Distribution Report Inspection)

Statement of the fourth reporting standard is: “The report submitted to the examination results of representative institutions, entities examined, the party has the authority to regulate the audited entity, the person responsible to follow up the results of the examination, and to other parties authorized to receive reports examination results in accordance with the provisions of legislation in force “.

Relations in Audit Operations Support the Effectiveness of Internal Control System

Operational audit role in supporting the internal control system is operational audit can find out the effectiveness and efficiency of a system of internal controls on a function (eg sales function) of a company. As described above, the operational audit objective itself is to provide an assessment of the effectiveness and efficiency and frugality of a company’s operations section, which is the expected result of the internal control system is good.

This relationship can also be seen from the statement of Abdul Halim (2003:198) about some basic concepts of the Internal Control System, namely:
“Internal Control System is expected to achieve the audit objectives, both financial audits, operational audits and audit compliance and Internal Control Systems are not intended to provide absolute assurance in which each Internal Control System must have a weakness”.



To see that the financial statements are often misleading to assess the state of a company, can be seen from the fact the closure of Bank Unibank. Banks that stood since 1967 was in March 1999 by Bank Indonesia is included in the bank category A. This bank has fulfilled Capital Adequacy Ratio (CAR) set by Bank Indonesia. In 1997 the bank recorded a profit Rp13 billion. In the year 1998 as the culmination of banking and monetary crisis that hit Indonesia, the bank suffered substantial losses of Rp436 billion. In 1999 the bank recorded a profit of Rp55 billion. In the year 2000 earnings performance was not bad. However, no complete information, then (for the general public) suddenly the bank was closed by the government. At first glance this bank note a fairly good performance. This also can be seen from the category of banks acquired by Unibank. People do not know or are not informed with sufficient information about the bank’s performance. If the performance is viewed from the bank’s financial statements have looked pretty good, but we do not know how economical, efficient and effective bank’s work. The result is quite clear, re-disadvantaged communities with the bank closure.


Some time ago a lot of mass media reported that poor performance of most SOEs. Of the five SOEs studied by several local public accountant and a loss of efficiency in the foreign registration Rp24, 5 billion and the potential losses that amounted to Rp7, 3 trillion and USD 698 million. This finding is of course very suffocating because the image of public companies that operate as they please without regard to economic feasibility, efficiency and effectiveness are clearly illustrated. Five SOEs are PT. PELINDO II, PT. JASA MARGA, PT. PTPN IV, PT. GARUDA INDONESIA and PT. TELKOM. Community truly disadvantaged. There are two types of loss felt by society, first, the people who use services such as public companies have to pay for inefficiency by company management. Second, the wider community because after all these SOEs financed from state funds that in fact it is public money collected from taxes. Communities also have to pay inefficiencies that enjoyed by a group of people from the public company. Habit to reveal to the public performance of such companies is a good start for people to obtain information other than financial reporting information. It is expected that the company management does not blindly run company. But because the information disclosed by the ministry of state enterprises is a “project” Letter of Intent with the IMF, the continuity of the delivery company’s operational performance information is still questionable because it could be merely meet the LoI. Actually the theoretical side, this activity is called performance audits. Types of audits that have been conducted by the Public Accountant Office in cooperation with the Foreign Office is a public accountant is not as popular during the financial audit of performance audit (performance audit). This performance audit of the author’s knowledge has been done in Australia with the Australian Auditing Standards 33 AUP in effect since 1993. How true that a performance audit?


Auditing of the performance management aims to provide comments on the implementation of their obligations, would have been done economically, efficiently and effectively. And then the auditors make recommendations on performance management. These recommendations will be followed up by management, and the results will be reviewed again and see whether in accordance with the established and in accordance with the recommendations that have been given.
Performance audit is more than just the traditional financial audit, in recent years, public accounting firm in addition to audit the financial statements, also may be required to conduct a review of management performance was audited, the audit entity during the period.
The purpose of the performance audit is to provide a recommendation that the existing resources in an audited entity may be controlled and used better, and can increase efficiency, frugality, and can improve management performance.
If the general public and business community to consider and feel you need an audit to evaluate the performance of public and private companies in the future, the performance audit are needed as well as for public companies in Indonesia, it was time for a performance audit used as an imperative (mandatory), so that resources that there can be properly maintained and properly allocated


Boynton, Raymond N, Johnson and Walter G Kell. 2001. Modern Auditing: 7th Edition. New York: John Wiley and Sons, Inc..

Effendi, Antony. 2004. Operational Audit Role in Supporting the Sales Effectiveness.

Nurbachtiar. 2002. Audit Performance: A requirement for Public Companies. UGM: Journal of Accounting and Finance Public Sector.

Leave a Reply

Your email address will not be published. Required fields are marked *