Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Indonesian Institute of Accountants or Ikatan Akuntan Indonesia (IAI)

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Indonesia


    2. Name of member body:
      Indonesian Institute of Accountants or Ikatan Akuntan Indonesia (IAI)

      Or please specify name:



    3. Individual responsible for preparation:
      Mr. Moh. Hanief Arie Setianto


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      01 / 1986



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      ASEAN Federation of Accountants (AFA)



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Companies Law No. 1 / 1995 (Undang-undang Republik Indonesia Nomor 1 tahun 1995 tentang Perseroan Terbatas)
      b). the Enacting body: Ministry of Justice
      c). date the Act or Code came into force: 03 / 1996


    25. How can IFAC obtain a copy of the Act or Code?
      Unofficial translation will be sent to IFAC Secretariat


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify): The Securities Commission sets out requirements for listed entities.
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Bapepam (securities Commission) rule No. VIII.G.2 requires listed companies to prepare annual report. Rule VIII.G.7 requires using PSAK (accounting standards) set by IAI
      Private companies Board of Directors prepares annual report, including financial statement. Company law requires financial statement to use PSAK
      Governmental Government agencies have to produce financial statements in accordance with PSAP (Government Accounting Standards)
      Not-for-profit Annual report must be provided, including financial statement in accordance with PSAK
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Using auditing standards set by Indonesian Institute of Accountants (IAI) - see section 5I
      Private companies Audit required If the company meets criteria of Government Regulation No. 64/1998 (audited using standards set by IAI).
      Governmental Using auditing standard set by BPK (supreme audit office)
      Not-for-profit If receives grant or financial assistance from Government, then audit is required.
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:
      The Law does not require rotation of auditors or audit firms, however Decree of Ministry of Finance No. 359/KMK.06/2003 dated August 21, 2003 requires rotation of partners in three consecutive years and audit firms in 5 consecutive years



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

    2. the Enacting body(ies)

      1. Ministry of Finance
      2. Securities Commission

    3. the latest amendment date?

      11/1995 for Capital Market Law


    35. How can IFAC obtain a copy of the Legal authority?
      Unofficial translation of capital market law will be sent to IFAC


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      see no. 33



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Capital Market Law article 66 11/1995 IAI
      Other (please describe) private companies MOF Decree No. 423/KMK.06/2002 regarding Public Accountant Services 08/2003 IAI
      Other (please describe) government bodies Audit of State Finance 06/2004 Supreme Audit Office
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Will be sent to IFAC

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (IAI)


    44. For IAI, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      IAI, through its Public Accountants Professional Standards, sets Auditing Standards

      b. Name of standards

      Public Accountants' Professional Standards (SPAP)


    45. How many voting members does the standard-setting body have?
      10 members


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      independent, good reputation, competent, and highly dedicated


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Council of Public Accountants Compartment appoints these members


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      31 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      2,800

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      8,500.00



    52. To what entity is the standard-setting body accountable?
      SPAP Board reports to the Council of Public Accountants Compartment


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Exposure draft is sent to our members in public practice, as well as to other stakeholders to give their comments within 60 days.
      Public hearing is held to explain the draft and receive comments. Sometimes, limited public hearing is held before public hearing to discuss or clarify certain issues.


    2. accessibility of meetings (i.e., public or private)

      Meetings of the board are private meetings. When necessary, Board can ask experts to come and discuss some issues

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority vote from board members are required to approve final standards

    4. other relevant due process activities

      When necessary, standards board call for special meeting with consultative board to discuss specific issues


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      50 Day(s)


    Section 5B -- Standard-Setting (Supreme Audit Office)


    44. For Supreme Audit Office, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      The Supreme Audit Office set the standards for auditing the government bodies

      b. Name of standards

      Government Auditing Standards


    45. How many voting members does the standard-setting body have?


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    52. To what entity is the standard-setting body accountable?


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice IAI bye-laws 05/2003 IAI
      Professional Accountants in Business as above as above IAI
      Professional Accountants in the Public Sector as above as above IAI
      Other (please describe) academics as above as above IAI

      a. How can IFAC obtain copies of these documents?

      will be sent to IFAC

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (IAI)


    56. For IAI, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Before 2003, Code of Ethics is set by the Congress. The rationale was if code of ethics would bind members of IAI then Congress, where the highest power lies, was the appropriate body to impose the ethics. The only problem was hard to keep the code update all the time because congress is held every 4 years.
      Since June 2003, Ethics committee was established and was given mandate to set code of ethics.


      b. Name of standards

      Code of Ethics


    57. How many voting members does the standard-setting body have?
      9 members


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Representation of each compartments, and best person for the job


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      National Council appoints members of Ethics Committee


    61. What is the term of appointment for members?
      4 Year(s)


    62. For how many years has the standard-setting body been in existence?
      1 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      3,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      8,500.00



    64. To what entity is the standard-setting body accountable?
      Ethics Committee reports to National Council


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Due process is not set yet, but most likely will be same with accounting/auditing standards

    2. accessibility of meetings (i.e., public or private)

      all meetings are in private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Final standards are to be approved by majority of members

    4. other relevant due process activities

      none


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      10 Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      In general, education system starts with the elementary school for 6 years. Junior high school is 3 years and then senior high school for another 3 years. 9 years for elementary and junior high schools is compulsory of national education system.


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      Accountants' Title Law (UU No. 34/1954) and MOF Decree No. 423/KMK.06/2002 and No. 359/KMK.06/2003.


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Graduate from Accounting program
      Professional examinations
      Passed the Professional Accounting Program
      Practical experience
      none
      Final qualifying examination
      Pass the [Indonesian] CPA Exam
      Other (please describe)
      possess state register of accountants administered by Ministry of Finance


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      Directorate General of Higher Education of Ministry of Education

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

    2. How many voting members does the relevant body(ies) have

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain) Final examination is delivered by IAI


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      Ministry of Finance


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      Directorate General of Financial Institution of Ministry of Finance


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      According to Bapepam (securities Commission) Rule No. VIII.A.1, public accountant must be registered with Bapepam



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government MoF Decree is being prepared na Government Accounting Standards Committee
      Ministry/department as above
      Statutory authority/agency as above
      Profit entity owned by government Company Law 1995 IAI - refer to Section 9
      State governments MoF Decree is being prepared
      Local governments as above
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      none

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Government Accounting Standards Committee)


    83. For Government Accounting Standards Committee, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Government Accounting Standards Committee (GASC) was established under the auspices of Ministry of Finance. Under the new Government Financial Reporting Regime, President will establish an independent board.

      b. Name of standards

      Government Accounting Standards (GAS)


    84. How many voting members does the standard-setting body have?
      11


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Ministry of Finance appoints member of GASC


    88. What is the term of appointment for members?
      3 Year(s)


    89. For how many years has the standard-setting body been in existence?
      2 Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      350,000.00

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      8,500.00



    91. To what entity is the standard-setting body accountable?
      GASC reports to Ministry of Finance. The new board will report to the President through Minister of Finance


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)

      Meetings are in private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority votes required to approve final standards

    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      50 Day(s)


    Section 8B -- Standard-Setting (IAI - refer to Section 9)


    83. For IAI - refer to Section 9, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body



      b. Name of standards



    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Capital Market Law article 69 11/1995 Indonesian Institute of Accountants (IAI)
      Other (please describe) Other entities Company Law article 03/1995 Indonesian Institute of Accountants (IAI)
      Other (please describe) Other entities Foundation Law 2001 Indonesian Institute of Accountants (IAI)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      will be sent to IFAC

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Indonesian Institute of Accountants (IAI))


    95. For Indonesian Institute of Accountants (IAI), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Financial Accounting Standards Board was established by IAI to set accounting standards

      b. Name of standards

      Financial Accounting Standards (PSAK)


    96. How many voting members does the standard-setting body have?
      14 members


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Highly dedicated to accounting profession, competent, and represented stakeholders


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      National Council appoints members of the Board


    100. What is the term of appointment for members?
      3 Year(s)


    101. For how many years has the standard-setting body been in existence?
      20 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      129,562.00

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      8,500.00



    103. To what entity is the standard-setting body accountable?
      Financial Accounting Standards Board reports to National Council


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Exposure drafts are sent to the public to obtain comments and input

    2. accessibility of meetings (i.e., public or private)

      All meetings are not accessed by public

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority votes required to approve final standards

    4. other relevant due process activities

      none


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      50 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      The Securities Commission (Badan Pengawas Pasar Modal)


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      Capital Market Law mandated Bapepam to promulgate accounting procedure as a complement to PSAK set by IAI.
      Bapepam Rule No. VIII.G.2. regulates annual report content requirements, including financial statement using PSAK.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Bapepam only regulates the audit profession when it comes to capital market issues.

    2. accounting and auditing standard-setting

      see point a. No for auditing standards

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements





    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Jakarta Stock Exchange
      Surabaya Stock Exchange



    Section 10B -- Stock Exchange
    Jakarta Stock Exchange Details


    110. For Jakarta Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Requirements of annual report, including financial statement are regulated in Bapepam Rule No. VIII.G.2. All financial statements are being examined using that particular rule. Trend analysis also being used to examine certain figure, such as net income, operational income, etc.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      If noncompliance exist the stock exchange seeks an explanation from the company.

    3. How enforcement actions are administered.

      All communication and summary of minutes of meeting are posted in the website.


    Section 10B -- Stock Exchange
    Surabaya Stock Exchange Details


    110. For Surabaya Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      see JSX

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      see JSX

    3. How enforcement actions are administered.

      see JSX



    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      Bank Indonesia is the central bank


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      BI only regulates the auditing profession when it comes to banking area

    2. accounting and auditing standard-setting

      Banks with company legal form are subject of Company Law 1995.

    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      Under Directorate General Financial Institution, Ministry of Finance, there are Directorate Pension Fund, Directorate Insurance, and Directorate Banking and leasing.


    116. What is the source of Legal authority of the regulatory authority(ies)?


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      None of them are regulating the audit profession

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      Directorate Insurance does the monitoring compliance and enforcing accounting reports


    119. What is the source of Legal authority of the regulatory authority(ies)?


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      none

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      see point


    122. What is the source of Legal authority of each regulatory authority?


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      IAI established Quality Review Board (DRM) to conduct quality review program. It is a voluntary review and will become mandatory review in 2005.



    125. Under what authority does the organization conduct the program of quality assurance review?
      Quality assurance review is mandatory under the IAI byelaws. Quality Control Standards under the Public Accountants Professional Standards (SPAP) also requires auditing firm to have quality control mechanism and undergo quality review


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      The Public Accountants Compartments established Quality Review Board (DRM) to conduct voluntary review. DRM is chaired by a former practitioner and supported by 2 qualified staffs. By 2005, mandatory review will be conducted for all auditing firm



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Disciplinary Committee (DC) and Appeal Committee (AC)


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      7 (DC) and 5 (AC)


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Criteria of AC members are: good standing in accounting and dedicated to accounting profession, capable to act with high integrity and independent, and not serving concurringly as National, District Council, Compartments Council, Professional Standards Boards and Consultative Standards Boards

      Criteria of DC members are: possess high professional reputation and competency, dedicated to public accountant profession, capable to act with high integrity and independent, and not serving concurringly as National or Compartments Council



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Congress for AC and members meeting for DC


    134. What is the term of appointment for members?
      3 Year(s)


    135. For how many years has the body been in existence?
      10 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      10,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      8,500 (specify currency)



    137. To what entity is the body accountable?
      AC reports to Congress. Usually special session is held to deliberate the report.
      DC reports to members meeting of public accountants compartment.



    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      50 Day(s)



     

     

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    The information contained within the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaires, Part 2 SMO Self-Assessment Questionnaires, and Part 3 SMO Action Plans are based entirely on information provided to IFAC by the IFAC member or associate to which the information relates. Further, the information has been collected by IFAC for the exclusive use and benefit of IFAC and IFAC's members and associates, but is being made available through this website to the general public in the interest of transparency of the IFAC Member Body Compliance Program. While certain efforts are made to validate the information, IFAC undertakes no obligation to confirm or investigate the completeness or accuracy of any of the content of the questionnaire or action plan, now or at any time in the future. Persons accessing the questionnaire or action plan assume full responsibility for the use of the information set forth herein. IFAC does not make any express or implied warranties or representations whatsoever as to any information provided through the questionnaire or action plan, including, without limitation, that the information contained herein will be error-free. IFAC shall not be liable for any damages, including, without limitation, direct, indirect, incidental, special, punitive or consequential damages, that result in any way from your use or reliance on information provided in the questionnaire or action plan. If you need to rely on the information set forth herein for any purpose, you are urged to confirm the information set forth herein with other sources.

    * Indicates organizations that qualify to submit SMO Action Plans biennially

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