After incorporating your company in Indonesia, it is crucial to maintain the sustainability of your business.
A way companies give confidence to their shareholders is by auditing their financial statements.
In Indonesia, it is required for Limited Liability Companies to be audited by a registered public accountant. These accountants will then provide accounting and auditing services.
An audit is an independent and systematic assessment of statutory records, financial documents of an organisation and book of accounts. They are to be conducted based on the Indonesian Financial Accounting Standards (SAK) which is set by the Financial Accounting Standards Board (DSAK IAI) and the Indonesian Sharia Accounting Standards Board (DSAS IAI), for sharia-based companies.
It is performed to determine the extent the financial statements as well as its non-financial disclosure present a proper representation of the company’s financial status. In doing so, It provides credibility to the set of financial statements and confirms that it is true and fair.
This results in a boost of confidence and continued support by the shareholders or investors. Additionally, it helps to improve a company’s internal controls and system.