Independent Financial Statements Audit Service by Experienced Auditors in Indonesia
Financial statements audit service in Indonesia from an experienced Indonesian registered public accountant to achieve assurance of the company's financial statements and compliance with Indonesian Law and Regulation.
Indonesian Law and Regulation Related to Financial Statements Audit
The financial statements audit for business entities (limited liability companies) incorporated in Indonesia, in general, are regulated under:
- Limited Liabilities Companies Law (Law No. 40 the year 2008)
- Regulation of Minister of Trade No. 25 the year 2020
With reference to the Indonesian Law of Limited Liability Companies, there is a certain condition where companies' financial statements are required to be audited:
- The Company’s business activities are related to the mobilization and/or use of public funds (banking and financial service institutions);
- The Company issues promissory notes (debt securities instruments) to the public;
- The Company is a Publicly Owned Company (Public Listed Companies);
- The Company is a state-owned company (Persero);
- The Company’s assets and/or total business turnover (revenue) reach a minimum value of Rp50,000,000,000 (fifty billion Rupiah); or
- It is required by the prevailing laws and regulations.
The Ministry of Trade Regulation of the Republic of Indonesia also required financial statements audit for certain conditions as follows:
- Limited Liability Companies (Perseroan Terbatas) having fulfilled one of the following criteria:
- Classified as a public or listed company;
- A line of business in managing public funds (banking and financial service institutions);
- Issuing debt securities instrument;
- Having total assets of at least IDR 25 billion; or
- A company which is a debtor whose annual financial reports are required to be audited;
- Foreign companies which have domicile and run their business within the Republic of Indonesia, including their branch offices, subsidiaries, etc; or
- State-Owned Companies (PERSERO), Public Service Companies (PERUM), and Region-Owned Companies.
The Audit Regulation and Standards We Follow
Our firm, KAP Agus Ubaidillah & Rekan conducts the practice with regards to the requirements of Public Accountants Law (Law No. 11 the year 2011) and Indonesia Capital Market Law (Law No. 8 the year 1995). The Public Accountant Law required Public Accountants to conduct audit services in Indonesia in accordance with the Standards on Auditing established by the Indonesian Institute of Certified Public Accountants. The Indonesian Auditing Standards are adopted from the International Standards on Auditing which is set by the International Audit and Assurance Standards Board.
Auditor Responsibility to Financial Statements
Our audit objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance, in the context of an audit, is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Indonesian Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit.
In performing audit services in Indonesia we also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern.
- If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Our audit service in Indonesia also includes the procedures to evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Our Audit Service Experiences
Our audit service experiences in Indonesia include audits of the financial statements of companies in the stages to go public or initial public offering in Indonesia, raising funds from investors, obtaining funds from banks, or for matters of performance and funding from donors in Indonesia and internationally.
Audit Service Industry
Our Audit service in Indonesia has experience with many sectors, including aviation, cargo, consumer goods, cryptocurrency, engineering, procurement and construction, energy & power, education, food and beverages, forestry and plantation, government, healthcare, information technology, manufacture, marine industry, mining, not-for-profit, property and real estate, retails, sports and entertainment, trading, shipping, services, and professionals.
About KAP Agus Ubaidillah and Rekan (TGS AU Partners)
KAP Agus Ubaidillah & Rekan is an accounting firm which is registered under the Ministry of Finance Republic Indonesia with business license KMK No. 386/KM.1/2012. KAP Agus Ubaidillah & Rekan is an independent member of TGS Global. Our audit offices are located in Jakarta, Bekasi (West Java), and Malang (East Java). Please have a look at the details about our firm on the following page.
The Advantages of TGS Global Network
TGS Global is an international network of accounting firms and advisory firms with offices in more than 60 countries and 5000 personnel. The network brings the value that each of our clients has the advantage of gaining access to world-class professional and global business networks, customers, and potential sources of funding. TGS monitors each member firm to operate with the highest compliance of professional standards (including audit) through its annual quality review process.