An annual audit of financial statements is conducted 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).
A limited review is conducted to enable the auditor to express a conclusion whether, anything has come to the auditor’s attention that causes the auditor to believe that the interim financial information is not prepared in accordance with generally accepted accounting principles in Indonesia (Indonesian GAAP).
A special audit is an examination and evaluation of a firm’s or individual’s financial information for use as special purposes, such as evidence in court, investigation of fraud committed by company’s officers or staff, and other purposes.
Financial due diligence is an audit in the context of mergers and acquisitions, which objective is to provide assurance that investor has been presented with a true and fair view of a target company’s financial performance and position.
You can expect that our audit process is a short and efficient one. We do our best to eliminate unnecessary processes. This is why we are able to charge you with more reasonable audit fees than our competitors.
While we make sure that we comply with professional standards, we make our audit process as simple as possible.
Our audit process is as follows:
Our auditors and clients agree on our audit plan and discuss on significant issues that may arise.
We collect data, communicate with clients about the data, and prepare our audit workpapers.
we communicate with clients about the audit results and prepare the audit reports.
we have final discussion with client about the audit adjustments and audit report.
FAQ’s about Auditing in Indonesia
What kind of companies that normally audit their financial statements?
Companies that according to Law No. 40 Year 2007 meet the following conditions:
Companies with total assets and/or revenues exceeding fifty billion rupiah (IDR50,000,000,000).
Companies whose shares are listed in the Indonesian stock exchange.
Companies that issue debt instruments.
Companies that collect or manage public funds (such as banks and insurance companies)
Companies whose shareholders or creditors require annual audits
Companies participating in a bidding process that require audited financial statements
Other specific purposes.
Do the Indonesian Tax Authorities require tax returns to be attached with 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.
What basis are used in auditing financial statements?
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”).
Kantor Akuntan Publik Jimmy Budhi & Rekan is reputable public accounting firm and auditing firm Indonesia supported by a registered public accountants serving businesses and non-profit entities in Indonesia. We were established in 2003 and we are registered with Ministry of Finance of the Republic of Indonesia, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan/OJK), the Supreme Auditors of the Republic of Indonesia (BPK), and the Central Bank of Indonesia (Bank Indonesia).