Presentation of financial statements remains a burden and responsibility of the management of the organization. Internal review is necessary to meet the demands of the organization as an internal effort to ensure on transparency and accountability of financial management. Internal review is also expected to be a preparation phase (pre-audit), prior to external audit by a public accounting firm.
Internal review can be performed in the project/program or the organization level. Review in the project/program level will be conducted on Fund Accountability Statement. While an review in the institution/organization level will conduct to the consolidated financial statements in accordance with PSAK No. 45.
The result of internal review will include:
1. Correction and Adjustments Journal
2. Restatement of Financial Statements
3. Management Letter
As befits an audit, internal audit include the types of operational review, compliance review and financial statements review.
Stages of internal review are a. Assignment Planning, b. Assessment of the Internal Control System, c. Conducting Tests and Examination and d. Reporting.