OPERATIONAL AUDIT PROGRAM FOR SMALL AND MEDIUM ENTERPRISES (SMEs)

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