Judul : Public Accounting Firm, Which Is Your Responsibility
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Public Accounting Firm, Which Is Your Responsibility
REARLY these bankers' lunch discussions were filled with topics about the responsibilities of the public accounting firm (KAP). There are companies that are audited with a predicate of Unqualified (WTP) suddenly the contents are bogus. One of them is Sunprima Nusantara Pembiayaan (SNP Finance). Creditors, investors and rating agencies are fooled, including the Financial Services Authority (OJK).
In Indonesia these cases of "polish-polish" are slightly open. In the same year, the previous period of Bank Bukopin also did not look appropriate in the audit results. After being re-audited, then the actual appearance. Its profits shrank far with the quality of credit which also fell. Then, the previous Jiwasraya Insurance (2016-2017) seemed "dashing" in profit-making suddenly shrank.
The urgency of the question now, where is the KAP's responsibility?
It is not the legacy accounting firm that audits it. They are the KAP worldwide class with local Indonesian partners. For SNP Finance audited by Deloitte Indonesia, Bank Bukopin was audited by Ernst & Young (EY), and Asuransi Jiwasraya (2016) by Pricewaterhouse Coopers (PwC). In the field, it turns out that in some cases, the results of audits by a number of KAPs do not describe the truth.
KAPs called the Big Four include Deloitte, PwC, EY, and KPMG. The four KAPs have local Indonesian partners. Different partners differ "tastes", even though the flag is the same. Before it was known as the Big Four, there was the term Big Five — plus Arthur Andersen who went bankrupt due to the Enron scandal in 2002. It was this Big Four who now controlled the big market.
The dominance of the "Big Four" must be questioned. Whether there is some kind of instruction from the Ministry of BUMN office or not, but the Big Four can always be allocated to SOEs. Naturally, the SOE Ministry office requested an audit of the Big Four KAP because the trust levels of the four accountants were very high, because their reputation was not playing games. However, the trust of the BUMN shareholders cannot be fully held by the KAP which is said to be world class.
Actually in Indonesia there are many KAPs, but indeed the integrity problem of KAP is also debated, certainly not all. On a national scale the results of examinations can be different. See, the results of the Supreme Audit Agency's (BPK) examination of the SKN BDNI were different between 2002, 2006 and 2017. Even though the object was the same. The class of CPC was difficult to hold in the tail.
Therefore, based on the report of the Financial Services Authority (OJK), the Indonesian Ministry of Finance imposed administrative sanctions on KAP Deloitte Indonesia (Satrio Bing, Eny and Rekan-SBE) and Marlina Public Accountants and Public Accountants Merliyana Syamsul. The essence of administrative sanctions is in the form of restrictions on audit services and improvements in the quality control procedures of KAP.
The SNP scandal is certainly not the same as the Enron scandal, an energy company in the United States (US) that dragged KAP Arthur Andersen. Enron announced his bankruptcy at the end of 2002. The bankruptcy of the company caused a tremendous furor. In fact, in 2001 before its bankruptcy still posted US $ 100 billion in revenue, it suddenly reported its bankruptcy to capital market authorities. The US public was shocked and Enron's resurgence was touted to be the biggest bankruptcy (at that time).
Furthermore, KAP Arthur Andersen continues to accept the negative consequences of the Enron case in the form of loss of clients, defection of affiliates who join other KAPs, and increased disclosure regarding the involvement of KAP employee Arthur Andersen in the Enron case.
Therefore, it is time for the Indonesian Ministry of Finance to tighten oversight of KAP offices, not limited to KAP with many projects but all KAP in Indonesia. It was felt so far, as there was no supervision of existing KAPs, and more stringent arrangements were needed. It is time for us not to be fascinated by the KAP which is said to be called the Big Four. And, the monopoly of BUMN companies is time to be relaxed, by giving opportunities to Big Six, Big Seven, or Big Ten. Of course, you have a good reputation with a high level of trust.
The responsibility of KAP is not light. See, the SNP victims have only been reported to be IDR 14 trillion. Investors, creditors, and communities are harmed. The financial sector market alone reaches IDR 12,000 trillion. So, the actual administrative sanctions are quite light compared to the consequences. Let us open up and clean up. l
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