Institut Akuntan Publik Indonesia
Member | Established: 2007 | Member since 2014
The IAPI regulates public accountants and is legally empowered to set auditing and ethical standards for the public accountancy profession. The IAPI is also responsible for administering the Certified Public Accountants exam and for setting ethical requirements for public accountants. Membership with the IAPI is mandatory for all public accountants. The IAPI was once a part of the IAI, first as a department, then as an association member between 2007 and 2012. In 2012, the IAI eliminated association membership and, as consequence, the IAPI’s membership with the IAI ended and the IAPI became an independent organization. In addition to being an IFAC Member, IAPI is also a member of the ASEAN Federation of Accountants.
Statements of Membership Obligation (SMO)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
SMO 1: Quality Assurance
Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) has been conducting QA reviews of its members since January 2011. Reviews are conducted by ad-hoc teams of partners and managers of Indonesian accounting firms, whom IAPI supports with training programs to enhance their skills and knowledge.
As part of IAPI’s initiative to update standards in the jurisdiction as issued by the IAASB, IAPI plans to adopt quality management standards by 2021. IAPI’s QA system includes guidelines on quality review which were set in August 2017.
To support its members, IAPI organizes CPD around QA-related topics and has also highlighted results of reviews for its members. IAPI has also developed its own quality review software to be used by its members. Educational opportunities to allow students and non-members to understand all aspects of quality assurance and local reviews are also offered by IAPI. . CPD programming around the quality management standards are being considered.
Due to the ongoing pandemic, QA reviews are being moved online. The only impact will be the number of reviews conducted as a trail run is conducted by IAPI and the regulators. The plan is to increase the number of online reviews as the system is being implemented.
A joint QA review will benefit the profession in Indonesia reducing overlaps between all bodies involved. IAPI is encouraged, in collaboration with other stakeholders, to ensure that the resulting system is in line with the international best practices formulated in SMO 1.
SMO 2: International Education Standards
The Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) is one of four bodies responsible for setting IPD and CPD requirements for accountancy professionals in the jurisdiction. IAPI is responsible for administering exams, offering CPD, monitoring CPD, and coordinating with its I&D committee to report members who fail to comply with CPD regulations.
To support the development of its education program, the IAPI reviews the existing curriculum and syllabus on a regular basis to incorporate developments in international standard setting. To support the development of its members, the IAPI facilitates CPD by conducting technical and non-technical workshops, hosting seminars and short courses, and organizing local conferences. In addition, the IAPI informs members about various CPD opportunities by posting information on its website and in e-newsletters. The IAPI actively supports an initiative to reach an agreement with the IAI and IAMI to develop a common translation of the IESs to achieve efficiency and ensure a common approach to translating the IESs.
SMO 3: International Standards on Auditing
The Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) is responsible for the adoption of auditing standards in Indonesia. It adopted the 2016–2017 ISA and has translated them into Indonesian Language. The IAPI’s current focus is reviewing and translating the most recent version of ISAs and other IAASB pronouncements, expose them for public consultation, seek the approval of the standards, and disseminate the standards to members. The updates to the standards have been published as an exposure draft. IAPI plans to conclude this update in 2021 in order for the standards to be effective in 2022.
IAPI recognizes that it is a long process to get standards updated; however, the process is stringent and meticulous to ensure the public is aware of the updates. This also involves buy-in from the regulators and other stakeholders in the jurisdiction. As all entities are required to follow standards set by IAPI, the body is continuously in conversations with various regulators and supervisory bodies over updates to the standards. As part of the local standard-setting process, IAPI also participates in regional and international standard-setting activities.
The IAPI has been providing technical support to its members, including developing implementation guidelines, incorporating topics related to ISAs into its initial professional development and continuing professional development materials, and disseminating information from the IAASB through printed materials and the IAPI website. In addition to distributing the implementation guidelines to members, the IAPI is working with the Pusat Pembinaan Profesi Keuangan/Center for Supervision of Financial Service PPPK to disseminate the guidelines to local universities.
Since being admitted as an Associate, IAPI has ensured that when updates to the ISA are available, it is aware and active in pursuing updating the standards in Indonesia, However, the one area that IAPI is recommended to improve is reducing the time gap between the issuance of ISAs and their adoption as the Indonesian Public Accountant Professional Standards. In this instance, IAPI is to continue developing a due process that allows for timely adoption of international pronouncements to minimize the time lag.
SMO 4: Code of Ethics for Professional Accountants
Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) education division is responsible for conducting CPD programs and informational sessions on ethical requirements and the Code. IAPI’s ethical programs and courses are also available to all exam candidates, university students, and the public.
To support members, IAPI has disseminated updates and the new Code to its members and prior to the adoption of the new Code, had offered various CPD and information sessions on ethical requirements. CPD on ethics is offered every month to all members. Some CPD courses are conducted with both IAI and IAMI and are sponsored by the regulators. In 2020, IAPI conducted extensive training on the NOCLAR standards, with the support of the regulators.
IAPI’s CPD requirements include mandatory courses on ethics, which allows members to obtain their license to practice from the MOF. Members are also required on an annual basis to take the ethical oath as part of renewing their membership.
It is commendable that the three PAOs have come together to develop a joint Code of Ethics. This is a major sign of progress not only for IAPI but the profession since IAPI was admitted in 2014. Going forward, the IAPI is encouraged to continue developing a due process that allows for timely adoption of international pronouncements and to consider participating in the IESBA’s public consultations and consider contributing to the international standard-setting process.
SMO 5: International Public Sector Accounting Standards
Although the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) has no legal responsibility for the adoption of public sector accounting standards, it regularly updates its members on announcements by the IPSASB and participates in the Government Accounting Standard Committee, which is responsible for the adoption of Government Accounting Standards in Indonesia. In addition, the IAPI makes IPSASs available on the IAPI website, and offers continuing professional development on the implementation of public sector accounting standards.
SMO 6: Investigation and Discipline
The Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) is one of three bodies responsible for I&D of accountancy professionals in Indonesia. The IAPI’s Komite Disiplin dan Investigasi/Investigation and Discipline Committee (KDI) is responsible for ensuring that the I&D system for its members is in line with SMO 6 requirements and for conducting the investigation and discipline of members. The Komite Kehormatan Profesi/Appeals Committee, which is independent from the KDI but operates within the IAPI, is responsible for hearing appeals by members who have been sanctioned by the KDI. IAPI’s system, based on an assessment conducted in 2020, is aligned with the requirements of SMO 6. IAPI reported reviewing 8 cases in 2019 and 5 cases in 2020.
IAPI reports that have been ongoing discussions to establish a combined I&D system to eliminate overlaps in work conducted by the respective bodies. More time is required for these discussions as the bodies focus on the joint-QA review system.
IAPI has demonstrated that, within the scope of its authority, it is committed to meet the SMO 6 best practices and has brought its I&D system in line with SMO 6 requirements. At the jurisdiction level, IAPI is encouraged to raise awareness about best practices in investigation and discipline of professional accountants of other stakeholders and to work jointly to establish an I&D system for all professional accountants in the jurisdiction that is fully in line with the international bet practices for I&D systems as formulated in SMO 6.
SMO 7: International Financial Reporting Standards
Although the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) does not have responsibility for setting accounting standards in Indonesia, it is represented by IAI’s Financial Accounting Standard Board. The IAPI’s activities are focused on providing continuing professional development programs through seminars on accounting standards for its members, and these seminars are also open to the public. The IAPI reports that it also supports the IAI in its standard-setting activities including joint CPD events and liaises with industry associations to promote the adoption of full IFRSs.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.