OPERATIONAL AUDIT PROGRAM FOR SMALL AND MEDIUM ENTERPRISES (SMEs)

Abstract

Small and medium enterprises or SMEs are entities that do not separate their task
as well as other entities and are dominated by management or owners. This
requires management or owner to directly control all activities in SMEs, both in
internal control and financial reporting, including policies that are made for the
entity. The policies are informal policies that usually unwritten and were
constructed by experiences in the past. Nowdays, are those policies still
significant to apply? It is important to know the answer before we can do
operational audit in SMEs. But the important question is, can we apply an
operational audit in SMEs?This paper aims to analyze the application of
operational audit program in SMEs. Results of this research show that
operational audit program can be applied in entity that meets the criteria to audit
implementation of SMEs. The criteria applied to non-raw, due to the timing of the
implementation of the audit to require consideration of the SMEs according to the
characteristics of the SMEs.