2011年-世界发展银行全球_Indonesia___Accounting_and_Auditing_31页_1mb

Summary of the Indonesia ROSC Report on Accounting and Auditing

Core Content

This report, Reports on the Observance of Standards and Codes (ROSC) Indonesia (Accounting and Auditing), provides an assessment of the current state of accounting and auditing standards and practices in Indonesia, focusing on the corporate sector. It outlines the progress made since the 2005 ROSC and identifies areas needing improvement to align with international standards and strengthen the financial reporting environment.

Main Viewpoints

• Progress Since 2005: Indonesia has made considerable strides in improving the quality of corporate financial reporting, enhancing institutional frameworks, and moving towards convergence with IFRS and ISA.
• Accountancy Reform: The country is working towards becoming a model for accountancy reform in developing nations, with a focus on institutional strengthening, training, and alignment with global standards.
• Institutional Challenges: Despite progress, there are still challenges in the institutional framework, particularly in terms of legal support, standard-setting, and enforcement mechanisms.
• Need for Alignment: There is an urgent need for accounting and auditing standards to be fully aligned with international standards to support increased investor confidence and financial transparency.

Key Information

I. Introduction and Background

• The report is part of a joint World Bank and IMF initiative aimed at improving compliance with international standards.
• It evaluates the accounting and auditing environment in Indonesia, focusing on the quality of corporate financial reporting.
• The report references IFRS, ISA, and international good practices as benchmarks.
• Indonesia has experienced macroeconomic and political stability over the past decade, with growth rebounding after the 2009 global financial crisis.
• Investment climate has improved, but infrastructure remains a challenge. Reforms such as the amended Income Tax Law and Investment Law have been implemented.
• The need for improved accounting and auditing standards is highlighted due to increased activity in secondary markets and the importance of transparency for investor confidence.

II. Institutional Framework

A. Statutory Framework

• The accountancy profession is governed by The Use of Accountant Title No. 34 (1954), which is outdated and only allows certification based on accountant certificates.
• The MoF has issued regulations that form the basis of establishing and operating institutions, but a modern legal framework is needed for stronger institutional support.
• A new draft law on public accountants has been prepared, which would provide stronger legal backing and an Oversight Committee to recommend to the Minister and handle appeals.

B. The Profession

• IAI Membership: IAI has three categories of membership (regular, extraordinary, honorary), with only regular members required to fulfill all obligations.
• Membership Requirements: Regular members must hold a Bachelor’s degree in accounting, complete IAI-approved training (PPAk), and register with the MoF.
• IAPI: The Indonesian Institute of Public Accountants (IAPI) is a separate entity that focuses on the audit profession and has been established to set ethics and audit standards.
• IAI Structure: IAI includes four associate organizations: IAPI, IAM (management accountants), academic accountants, and public sector accountants.
• Membership Numbers: As of December 2009, IAI had 8,185 registered members, 343 junior members, and 73 corporate members.
• Professional Distribution: Most public accountants are concentrated in urban centers, indicating a need for broader professional development and outreach.

III. Accounting and Auditing Standards

• The Indonesian Financial Accounting Standards Board (DSAK) under IAI is responsible for developing and disseminating accounting standards.
• There has been a significant increase in National Accounting Standards (PSAK) that are now IFRS convergent.
• Accounting standards for non-public interest entities (SAK ETAP) were issued in late 2009 based on IFRS for SMEs.
• The audit profession is regulated by IAPI, which has been established to focus on audit standards and ethics.

IV. Auditing and Enforcement

• Audit Requirements: All listed companies, non-bank financial institutions, and banks are required to be audited by a certified public accountant (CPA).
• Audit Committees: Listed companies are required to establish audit committees, which are accountable to the board of commissioners and include independent members.
• Rotation Requirements: Audit partner and firm rotation are mandated by MoF and Bapepam-LK, with stricter requirements for listed banks (3-year partner rotation, 5-year firm rotation).
• International Practice: These rotation periods are shorter than international best practices, such as the IFAC Code of Ethics requiring a 7-year rotation for public interest entities.

V. Policy Recommendations

• Legal Framework: Develop a modern legal framework to support the institutional and professional development of accountancy.
• Standard-Setting: Strengthen the capacity of IAI to function as a leading member body of IFAC and enhance IAPI's role within IAI.
• Training and Education: Implement broader training programs on the practical application of new accounting and auditing standards.
• Curriculum Development: Continue to develop accountancy curricula and teaching in universities to align with international standards.
• Monitoring and Enforcement: Improve the effectiveness of monitoring and enforcement mechanisms to enhance investor confidence in financial reporting.
• Professional Development: Increase the number of public accountants to meet the needs of a growing economy and improve the quality of the profession.

Conclusion

The Indonesia ROSC report emphasizes the importance of aligning the country’s accounting and auditing standards with international benchmarks to support a resilient and transparent financial system. It highlights the need for legal reforms, institutional strengthening, and professional development to ensure that Indonesia becomes a model for accountancy reform in the developing world.