PROFESSIONAL JUDGMENT: FENOMENA DI BALIK PENERAPAN IFRS DALAM ASET TETAP PADA LAPORAN KEUANGAN

Studi Fenomenologi Pada Auditor KAP di Semarang dan Jakarta

Abstract

International Financial Reporting Standards are standards focused
in fair value approach on measurement and disclosure criteria that require
the greater extent of the exerciseof professional judgment. This study aims to
understand the exercise of auditor professional judgment in International
Financial Reporting Standards (IFRS) in fair value of fixed assets, to
understand the factors that contribution in exercising professional judgment
on fair value of fixed assets and what constrains that emerge when
exercising professional judgment in fair value of fixed assets as well as
solution that can be done to overcome these problem.
This study uses qualitative research methods with a
phenomenological approach as it is meant to analyze and look for the
meaning behind the experiences of the auditor in exercising their professional
judgment. This study focused on the exercise of professional judgment on the
fair value of fixed assets. The research was conducted through interviews
with auditors who work as public accountants in public accounting firm.
Results of this study indicate that auditors exercise their professional
judgment to review the appraisal value by assessing the reasonableness of the
assumptions, methods and data used. Auditors exercise their professional
judgment by considering the factors that influenced such as consideration of
materiality, subjectivity, knowledge, and experience as well as factors such as
the audit job IFRS requirements, the nature of accounts, compliances with
IFRS, audit history, engagement management, fraud risk and going concern.
The auditor had no difficulties in using professional judgment in assessing
the fair value of fixed assets due to the existing appraisal valuation. Instead
auditor experienced problems when assessing the fair value of financial
instruments is important for future research. Finally, team work and
discussion are solution that auditors used to overcome the problem in
exercising professional judgment.