After a while, Brekdak as head of the Accounting Department, realized that the system of record that had been working for the last 2 years at PT. Suka Maju experienced a misstatement due to an error in adopting an estimate from the accounting records that turned into a straight-line method. With the changes of used in the depreciation estimation method, cause the company's performance to decline and how were errors found in the recording of the financial statement accounts. As a professional auditor who found these errors during an audit, what suggestions and recommendations can you make based on the provisions of the accounting standards in Indonesia?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 4TP: Assume you are employed as the chief financial officer of a corporation and are responsible for...
icon
Related questions
Question

After a while, Brekdak as head of the Accounting Department, realized that the system of record that had been working for the last 2 years at PT. Suka Maju experienced a misstatement due to an error in adopting an estimate from the accounting records that turned into a straight-line method. With the changes of used in the depreciation estimation method, cause the company's performance to decline and how were errors found in the recording of the financial statement accounts.

As a professional auditor who found these errors during an audit, what suggestions and recommendations can you make based on the provisions of the accounting standards in Indonesia?

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Auditing: A Risk Based-Approach to Conducting a Q…
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning