...CHAPTER 21 AUDITING INTERNAL, OPERASIONAL, DAN PEMERINTAHAN AUDITING INTERNAL Definisi Auditing Internal Auditing internal adalah aktivitas pemberian keyakinan serta konsultasi yang independent dan objektif, yang dirancang untuk menambah nilai dan memperbaiki operasi organisasi. Auditing internal membantu organisasi mencapai tujuannya dengan memperkenalkanpendekatan yang sistematis dan berdisiplin untuk mengevaluasi serta meningkatkan efektivitas proses manajemen risiko, pengendalian, dan pengelolaan. Evolusi Auditing Internal Auditing internal dimulai sebagai fungsi klerikal yang dilakukan oleh satu orang, yang terutama terdiri dari pelaksanaan verifikasi tagihan secara independent sebelum melakukan pembayaran. Setelah bertahun-tahun, auditing internal berevolusi menjadi aktivitas yang sangat professional yang mencakup penilaian atas efisiensi dan efektivitas semua tahap operasi perusahaan, baik yang bersifat keuangan maupun non keuangan. Standar-Standar Praktik IIA telah menetapkan standar praktik yang mengikat para anggotanya. Standar umum yang berkaitan dengan masalah-masalah berikut ini : a. Indepenensi b. Keahlian professional c. Ruang lingkup pekerjaan d. Pelaksanaan pekerjaan audit e. Pengelolaan departemen auditing internal Hubungan dengan Auditor Eksternal Biasanya terdapat hubungan yang erat antara auditor internal dan auditor independent dari luar entitas. Pekerjaan auditor internal bisa menjadi pelengkap, tetapi bukan pengganti...
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...to the casual observer) that the U.S. Economy is near implosion. The meltdown of 2008 was child’s play compared to what is lurking on the horizon. While the government artificially stimulates the economy by printing new money and propping up the stock market to make things appear rosy, economists are sounding the alarm to get ready for the biggest economic collapse in the history of America. It is not about pessimism or optimism, it is about the facts. The truth is that America is bankrupt at every level and no amount of bailouts, stimulus packages, budget cuts, or tax increases will get us out of the debt hell we have created. So, what is really going on with our economy and how did we get in this mess? What options do we have? What are the consequences of those options? Economics 101: Deficit vs. National Debt Deficit is basically the shortcomings in the budget for any given year. If the government has $300 billion in available funds and it spends $350 billion, it has a deficit of $50 billion. At the end of that year, what happens to the $50 billion owed? It gets rolled over into the long-term shortcoming, which is the national debt. The latter debt is ideally to be paid by using revenue from corporate and income taxes plus other fees imposed by the government. The U.S. national debt then, is the sum of all outstanding debt owed by the federal government. It includes the money government borrowed, plus the interest it must pay on this debt. Putting Deficit and...
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...Article Review – The U.S. Debt and How It Got So Big Week three’s article review focuses on an article written by Kimberly Amadeo, an U.S. economy expert. This article explains the public debt of the United States; who owns the debt, how the debt is financed, three components that increase the debt, and what effect debt has on the economy. The U.S. debt is the total sum of all outstanding debt owed by the Federal Government, it is the largest in the world exceeding $18 trillion, and is tracked using a national debt clock. Nearly two-thirds of the public debt is owed to the people, businesses and foreign governments, the rest is owed by the government to itself, and is held as Government Account securities. Public debt is “the total amount of money owed by the federal government to the owners of government securities; equal to the sum of past government budget deficits less government budget surpluses” (McConnell, Brue, Flynn’s, Macroeconomics: Brief Edition, 2e, February 7, 2012, p192). The debt is an accumulation of Federal budget deficits. In efforts to stimulate economic growth, current and past administrations have created enormous budget deficits. President Obama added the economic stimulus package, the Obama tax cuts and roughly $800 billion a year in military spending since 2008. The national debt grew rapidly even before the 2008 financial crisis. President Bush added the EGTRRA and JGTRRA tax cuts and the War on Terror, which ballooned the national debt from $6-$9 trillion...
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...The U.S. debt and its budget surplus and deficit(s) has been an on-going discussion way back from the foundation of America. America started borrowing money during the American Revolution. It wasn't officially considered a national debt until the Independence and the declaration of the U.S. Constitution. By the year of 1835, they were completely debt-free due to several budget surpluses and an effective budget planning. However, the budget surplus didn't last that long as the borrowing of money started again right after a year. The U.S. borrows money from Federal Reserve, U.S. Individuals and Institutions, Social Security Trust Fund, and other foreign nations and governments by issuing bonds for sale through the U.S. Treasury. Throughout history, some of the key reasons for the accumulation of the national debt was due to wars such as; WWI, WWII, Cold War, etc., drastic tax-cuts, The Great Depression, economic recessions, military and defence spending, welfare programs, bail-outs of big corporations, etc. America is forced to borrow money every time when their expenses are more than their revenue. This borrowing of money ultimately puts a debt on the U.S. and its citizens. The majority of the U.S. debt is owned by Federal Reserve and other U.S. individuals and institutions like; Social Security Fund, etc. whereas the second largest holder of the U.S. debt is China followed by Japan. Both China and Japan own 1.1+ trillion of U.S. debt each. The major borrowing of the debt started...
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...In week four, we discussed how deficits, surpluses, and debt in relation to the macroeconomic health of the United States. A government deficit is when federal spending is greater that the tax revenue received for that year. Each year the deficit is added to the current debt, the Treasury must sell bonds to raise the money to cover deficit. At first, the deficit spending does boost economic growth. As we have read in the previous weeks, government spending does have a positive effect on the economy; it lowers interest rates, increasing the money supply available, and creates jobs, which lowers the unemployment rate. However, if the deficit is added to the national debt this is very damaging to the economy because the government can let the value of the U.S. dollar fall, this would make the debt repayment cheaper and less expensive. This will have a negative effect on foreign government and how investors view the strength of our Treasury bonds, and they will be reluctant to purchase Treasury bonds, this will cause an increase in the interest rates. When creditors become concerned about a country's ability to repay its debt, they demand a higher interest rate to provide a greater return on this higher risk investment. Treasury bills, notes and bonds are used to finance budget deficits, if foreign government and investors do not purchase them, the U.S. will have difficulty raising money to continue to finance the deficit On the other hand, a budget surplus is the opposite...
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...of the United States. Explain why these are crucial challenges and how they can be overcome. Your response must make references to short term fluctuations as well as long-term economic growth prospects. As I see it, the U.S. national debt is one thing that will have a huge impact on the future economic well being of the United States. As of July 19, 2015, the U.S. national debt equals $18,158,174,556,882.73 (U.S. National Debt Clock), which is 101.53% of the gross domestic product (Trading Economics, 2015). From an individual’s perspective this exorbitant national debt will potentially lead to higher taxes, reduced benefits (for example Social Security), and higher interest rates. The national debt has continued to increase approximately $2.05 billion dollars per day since September 2012 (Trading Economics, 2015). If the U.S. government doesn’t find a way to curb the current expansionary fiscal policy, the United States could find itself in a situation similar to Greece over the past few weeks. As a healthcare provider and someone who sees the firsthand effects of the current system on patients and healthcare organizations, I am very interest in healthcare reform and its impact on the Federal budget deficit. With healthcare expenditures in the U.S projected to reach 34% of the GDP by 2040, the case for healthcare reform is a no-brainer, and President Obama’s monetary policies sought to remedy this. However, the Affordable Care Act in its current form is not the answer...
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...our decision making. A couple of the implications that the US has been dealing with lately are The U.S. health system, that national debt, and the separation among the social classes. The health system suffers from a large uninsured population, financial barriers to care, a shortage of primary care providers, and potentially important gaps in the quality of care. Our health care system is literally losing “patients,” killing more than 500 per day from errors, accidents and infections in hospitals alone, not to mention the mortality and suffering from millions of procedures that never needed to be done in the first place. A report by the Institute of Medicine Health suggests a third or more of health costs are wasted. The cost of these unnecessary, harmful early elective deliveries was estimated in a study in the American Journal of Obstetrics and Gynecology to be nearly $1 billion per year (Forbes). If we cannot get the healthcare situation under control, we will just keep piling up the debt here in the US. Now I will elaborate more on the national debt here in the US. As of February 29, 2016, the official debt of the United States government is $19.1 trillion. This amounts to $59,196 for every person living in the U.S. and $153,511 for every household in the U.S. If the U.S. does not get this under control then we could face the consequences of reduced future national income and living standards, reductions in spending on government programs, higher marginal tax rates...
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...Fiscal Policy Paper Deficit can affect multitudes while a surplus creates positive results for those on the receiving end. A debt requires the liability to be paid or the liability may be repossessed or rendered bad credit to the individual. While Americans face issues with debt, surplus, and even deficit it is important to know that the United States deals with it first hand as well. Several areas the three topics affect include tax payers, unemployed, Social Security, Medicare, imports, exports, and the GDP. A synopsis of Team B’s discussion of the topics follows. Tax Payers Taxes are imposed on the United States by three categories; federal, state, and local government. Tax payers are taxed on their income, payroll, property, sales, imports, estates and gifts, as well as various fees. Tax payers are required to file tax returns whether it be for a business, corporation, or individual. Tax payers are affected by the U.S. deficit when there is a shortfall in revenue which is the result from the National Debt increasing. Additionally when there is a surplus tax payers are affected as well. Future Social Security and Medicare Users Social Security Administration figures that by the year 2040 the SS trust fund will be used up causing utilizing one of three options: borrowing, increasing revenue, or lowering benefits. The Medicare program is estimated to be much closer to crisis than the SS trust fund. In contrast to current Medicare and Social Security benefits budget...
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...government in the U.S economy extends far beyond its activities as a regulator of specific industries or gatekeeping. The government is also responsible for managing the overall pace of economic activity, with its objective of maintaining high levels of employment and controlling price stability (inflation). It has two main tools for achieving these goals: fiscal policies, which is done through taxes and spending and monetary policies, through which it manages the supply of money. In this paper, I will discuss the why high deficits of today will reduce growth rate of the economy in the future, look at the history of our nation’s debt and deficits, different elements that causes of deficit and why the cause actually matters, what role the fiscal and monetary policies have to lead to higher or lower budget deficits and how deficits affect the overall long-term economic growth and debt of the U.S. Let us first begin by learning the difference between the terms debt and deficit. In economics, the term deficit means a shortfall in revenue of a fiscal year. It is when the government’s revenue called receipts, which are collected taxes (payroll, corporate, excise, income and social insurance), fee revenues and tariffs that are called receipts are lower that what is spent called outlays. In other words, the federal budget deficit is the yearly amount by which spending exceeds revenue. The term debt is described as an accumulation of deficits so the national debt is the total amount...
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...Fiscal Policy ECO/372 June 1, 2015 Alan Beideck Fiscal Policy The United States deficit, surplus, and debt influences the economy in a number of ways, and it creates an impact on taxpayers, social security and Medicare users, unemployed workers, and students. These issues also affect the countries financial reputation, exports, imports and the Gross Domestic Product (GDP). The U.S. economy is experiencing a budget deficit and outstanding debt, and the outlook is not good for taxpayers. If these two items do not get under control, future generations will be left to pick up the pieces and will have to try to find a way to maintain and control the budget. Taxpayers Taxpayers are the people that pay and contribute to state revenue. Government deficits affect taxpayers by increasing taxes and interest. "Inflation also affects the deficits by affecting the size of social security payments, federal pension payments, and interest on the federal debt. The deficit and surplus are sensitive to the business cycle" (Deficits, Surpluses, And Debt, 2015). "If the government use surplus it would "give tax cuts to taxpayers, increase income transfers, pay down national debt and spend it on goods and services" (Deficits, Surpluses, And Debt, 2015). Future Social Security and Medicare users The Social Security program began in 1935 and benefits have always been paid on time, even with modified laws over the years. Benefits are expected to continue to be paid on time through...
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...tax payers and future social security and Medicare users because they create a deficit, surplus, and debt. The purpose of this paper is to discuss how this deficit, surplus, and national debt affect all have impacts on these citizens. To understand how a deficit, surplus, and national debt affect the economy, it is important to understand what each term means. First there is a deficit which is a lack of funding to cover a cost. A surplus is just the opposite of a deficit. An extra fund left over after the cost of something is paid for in full is called a surplus. Any long term running deficits, in actual currency terms, is considered debt. The United States (U.S.) has accumulated a large amount of debt, increasing its deficit more every year. Surprisingly, national debt has plagued us since George Washington’s presidency, a whopping $75,463,476.52 in 1791 (Steinbring, J., 2011). The U.S. deficit leaves very little in terms of money flow for the government. When deficits are added to current debt, the federal government needs a way to pay to some of it off. This is where fiscal policy comes into the picture, resulting in increased taxes for Americans (Accumulating Money, 2015). Even during times of government surplus, Americans are still required to pay taxes to cover our country’s ever increasing debt (Accumulating Money, 2015). In addition, if national debt...
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...difference between the national deficit and the national debt? What is the size of both as of 2010? Provide the current figures for the U.S. federal government debt, personal debt (such as credit cards), and our trade deficit. Which of these will have the most negative economic impact on future generations? Please explain your answer. The main difference between deficit and debt is the kind of concept each one is. Deficit is described as a shortfall of earnings under payments that is regarded as a flow concept; while, debt is described as accumulated deficits less accumulated surpluses that is regarded as a stock concept. Deficit (flow concept) has got a period of time linked to it. Therefore a deficit is decided during a period of time like a business quarter or a financial year. Debt (stock concept) is explaining something at a given time like a given day. As of 2010, the U.S. had a countrywide deficit of 1,293 billion bucks along with a national debt of 13.5 trillion bucks. The present U.S. federal government debt is 15.5 trillion bucks, personal debt is 9.9 trillion bucks, and trade deficit is 1,299 billion bucks. I think the most damaging economical effect on generations to come would be public debt. I have this stand since national deficits aren't always harmful and may really be great for an overall economy particularly if an economy is in an economic downturn because it results in the economy is growing. Moreover, if one is to look at government debt they may observe...
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...Ask an American citizen about the financial status of the U.S. government. He or she would most likely have an awareness of the current debt crisis that afflicts our nation’s government, once thought to be impervious to economic decline. Fewer, however, would be aware of the extent to which the U.S. government bears financial burdens and the ways that the debt crisis impacts us as individuals. Overdraft, a documentary directed by Scott Galloway and sponsored by the Travelers Institute, seeks to explain how government spending shapes our wellbeing and provides potential solutions for reducing the national debt. The propositions offered in this movie prompt Americans to consider the ways that they can enact change to prevent the debt crisis from worsening. According to Overdraft, our current national debt amounts to over $14 trillion, and on our current fiscal path, this total will steadily increase. Several factors are responsible for producing this debt, including unpaid tax cuts, two expensive wars, and the recent economic downturn, which resulted in “the lowest revenues… and highest expenditures as a share of our national income in the past sixty years” (Overdraft). Our government’s lack of foresight in managing the national budget is not solely responsible for the current state of affairs, however. In fact, the recession of 2007-2009 was primarily a product of the collapse of the housing economy, the participants of which include the majority of middle class Americans...
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...states, “Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction” ( “Primary Documents in…”). Interesting, almost 149 years later, and with many Americans in debt today, the above words, can only suggest one thing; perhaps slavery or involuntary servitude is not dead but has only taken on a more disguised form. Although the above may be true, some believe debt is not slavery but a financial hardship brought about by one's own actions. With statics showing that the American public holds the bulk of the seventeen trillion dollar, deficits (The Debt to…); and that only 32 percent of Americans actually budget (Jacobe), one can come to believe this is true. That it is the public’s fault for not budgeting. For this reason, it is necessary that we diligently research and investigate past and present evidence to educate ourselves on the national debt crisis, so that we could shed some light on the root cause. First all, we will need to understand eccentric statistics on how many Americans are actually affected by debt today. According to Michael A. Fletcher of The Washingstonpost.com, three out five workers’ mortgages, credit card balances and installment loans are outpacing the amount of money they are able to save for retirement. In addition, Bill Fay of Debt.org acknowledges, that the more than 160 million Americans with...
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...increasing trade deficit, in addition to little national saving, the United States is dependent on large inflows of money from other countries. In other words, by running a current account deficit, the United States need to run a surplus on the financial and capital account in order for their balance of payments to balance out. This current capital inflow is allowing the United States to invest more than they save, and consume more than they produce, yet, this deficit makes the United States a debtor nation. Economist argue that there are some concerns associated with having a current account deficit and being a debtor nation. As of now, foreign investors have big confidence in the U.S. economy, as the U.S. dollar is seen...
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