TOP AUDIT FIRM IN INDONESIA

Add credibility to information presented to shareholders & give investors assurance to make decisions with confidence. Get professional audit services in Indonesia from our qualified auditors.

Indonesia Audit2022-12-23T17:53:27+08:00

INDONESIA AUDITING SERVICES

Here are the audit services in Indonesia that we provide:

Tax exemptions in Singapore

  • Annual Financial Audit

  • Special Purpose Audit

  • Certification for Subsidy Claim Audit

  • Fixed Assets Certification

  • Claim Certification

  • Shares Certification

  • Personal Income Certification

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WHY COMPANY AUDITS IN INDONESIA ARE IMPORTANT

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.

Reasons-for-company-audit-1

WHY COMPANY AUDITS IN INDONESIA ARE IMPORTANT

Other than analysing the credibility of the financial statements, audits also analyse the material misstatement risks that are present within them.

Here are some differences between an audited and unaudited companies are listed below:

Audited Companies Unaudited Companies
  • Able to create reliable financial reports, for internal or external purposes
  • Able to determine the proper allocation of its resources or the different levels of productivity of each product sold by the company
  • Able to manage financial affairs because they would not be able to analyse the status of their assets and liabilities
  • Reliable in the marketplace due to an inability to consistently produce and distribute high-quality goods and services
  • Unable to create reliable financial reports, for internal or external purposes
  • Unable to determine the proper allocation of its resources or the different levels of productivity of each product sold by the company
  • Unable to manage financial affairs because they would not be able to analyse the status of their assets and liabilities
  • Unreliable in the marketplace due to an inability to consistently produce and distribute high-quality goods and services

AUDIT EXEMPTION IN INDONESIA: ARE YOU QUALIFIED?

It is mandatory for every limited liability company in Indonesia to have their financial statements audited if they fulfil one of the following criteria.

Companies with a total asset value exceeding 50 billion rupiah (estimated $3.4 million USD)

Public companies

Companies that issue debt instruments

State-owned enterprises

Companies that collects or manages public funds – e.g. banks and insurance companies

All companies are required to keep all records for a minimum of 10 years from the end of its reporting period.

Requirements for group company audit exemptions

5 REASONS WHY YOU SHOULD CONDUCT A COMPANY AUDIT

Although you may be exempted from an audit, there are many benefits of engaging an audit firm in Indonesia.

Here are the benefits of auditing your business:

  • Strong internal controls

    Internal audits evaluate your internal control activities, which comprise of physical control of assets & records, adequate documentation, proper procedures for authorisation, independent internal verification, and segregation of duties

  • Process Efficiency

    Internal audits in Indonesia help to identify gaps in your business operations, procedures and your governance processes while providing appropriate recommendations on how to solve the misstatements.

5 reasons why you should audit
5 reasons why you should audit 2

  • Security

    Internal audits review through your business’s cybersecurity environment to check for any vulnerabilities and if they are secured to your security standards. Auditors will provide and recommend on the possible ways to mitigate the issues raised.

  • Integrity

    Internal audits analyse and review your financial statements and verify their accuracy and integrity – this helps to avoid financial losses.

  • Improved Compliance

    Such audits in Indonesia check the laws, regulations, and industry standards with which your organisation needs to comply and whether the company is adhering to these guidelines.

CONSEQUENCES OF LACK OF AUDIT IN INDONESIA

There are consequences for companies who did not conduct their audits – whether internal, which is conducted by their employees, or external, which is conducted by third-party auditors.

Reduced business performance as there is no identification of underperforming areas

Lack of action taken to solve the underlying issues within the company

Lack of initiation of new policies to address process-driven issues

Possible loss of income due to legal issues

May experience lawsuits or press criminal charges

consequences of lack audit

HOW TO RESPOND TO AN AUDIT IN INDONESIA?

After engaging audit services in Indonesia, an audit report will be given. Here are some of the ways you can respond to it:

HOW TO RESPOND TO AN AUDIT IN INDONESIA

  • Address Concerns

    Not every business must comply with the recommendations provided by the auditing team. However, a company must always ensure that it remains legally compliant, and it can do this through the use of information provided by audits.

  • Appeal to the Authorities

    If your company lacks the necessary resources required to fulfil the recommendations, you can proceed to appeal this recommendation and request for an extension if necessary. Failure to comply with the recommendations may be regarded as a breach of conduct protocol and companies can face severe penalties.

  • Open Audits

    Companies which are subject to open audits are especially recommended to comply with proposals stated in the audit report because the general public will know more about the details of the company in question.

AUDIT FAQs

Extend your understanding about audit in Indonesia and the services that audit firms provide with these top 4 questions that we got asked most.

What are auditing services?2022-07-15T12:10:32+08:00

Auditing services are professional services that provide compliant financial statements and ensure that the finances are in order before communicating to key stakeholders.

When do I need to submit the audited financial statements in Indonesia?2022-07-15T12:10:17+08:00

The audited financial statements must be submitted within 6 months from the end of the financial year.

How long does an audit usually take in Indonesia?2022-07-15T12:10:00+08:00

Depending on volume and complexity of transactions, an audit can take a few weeks or up to months.

How often do companies need to be audited?2022-07-15T12:09:42+08:00

Every company must have its financial statements and accounting records audited at least once a year. Only companies which fulfil the criteria for audit exemptions do not have to be audited.

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