According to Law No. 40 Year 2007, audit is required for companies that meet the following criteria:

1. Companies with total assets and/or revenues exceeding fifty billion rupiah (IDR50,000,000,000).
2. Companies whose shares are listed in the Indonesian stock exchange.
3. Companies that issue debt instruments.
4. State-owned companies.
5. Companies that collect or manage public funds (such as banks and insurance companies)

Other than the above, certain institutions require audit of financial statements, these may include:

1. Banks and other financial institutions that require their debtors to submit audited financial statements.
2. Private and Government institutions that require companies participating in a bidding process to submit their audited financial statements.

No, on the tax returns taxpayers are given the options whether to base their tax returns on audited or in house books. However, if the taxpayers’ books are audited for any purposes, tax returns have to be based on the audited books.

Objective of audits are to obtain reasonable assurance about whether the financial statements are free from material misstatement and whether they are prepared in accordance with generally accepted accounting principles in Indonesia (Indonesian GAAP).

Currently, the Indonesian GAAP constitutes Indonesian Financial Accounting Standard (SAK), Accounting Standards for Non-public Accountable Entities (SAK ETAP), Accounting Standards for Micro, Small and Medium Size Entities, and Accounting Standards for Standar Akuntansi Keuangan Entitas Mikro Kecil dan Menengah (SAK EMKM), and Syariah Accounting Standards (SAK Syariah).

Our audits will be conducted in accordance with the auditing standards established by the Indonesian Institute of Certified Public Accountants (IAPI), called Professional Auditing Standards for Public Accountants (Standar Profesional Akuntan Publik or “SPAP”).