Institut Akuntan Publik Indonesia
Associate | Established: 2007 | Associate
The Institut Akuntan Publik Indonesia (IAPI) regulates public accountants and is legally empowered to set auditing and ethical standards for the public accountant 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 is an independent organization established on May 24th, 2007 through the Extraordinary General Members Meeting of IAI-Compartment for Public Accountants. The IAPI used to be part of the Ikatan Akuntan Indonesia, first as a department and 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.
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
The IAPI, which is one of three bodies responsible for the quality assurance (QA) review of auditors’ work in Indonesia, 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.
In 2012, the IAPI revised its Quality Review Guidelines to bring them closer in line with the revised SMO 1 requirements. In 2015, the IAPI conducted another review of its system and identified areas that did not meet SMO 1 requirements. To address the gaps in its system, the IAPI plans on linking its QA system with its I&D system and publishing QA activities and results of the reviews on its main website. The IAPI also plans on organizing continuing professional development around Indonesia to raise member awareness of QA topics and to highlight results of the reviews.
Starting March 2016, the IAPI plans on developing new guidelines to introduce a self-assessment approach to QA for firms and auditors. QA reviews are currently conducted only by external reviewers. This process is ongoing and no timeline has been established for its completion.
To eliminate overlaps in respective responsibilities of different agencies involved in QA reviews of auditors in the jurisdiction, the IAPI is currently working with the Pusat Pembinaan Profesi Keuangan/Center for Supervision of Financial Service Professions of the Ministry of Finance of the Republic of Indonesia and Otoritas Jasa Keuangan/Financial Service Authority to develop a three-party QA review system.
SMO 2: International Education Standards
The IAPI is one of four bodies responsible for setting initial and continuing professional development (IPD and CPD) requirements for accountancy professionals in Indonesia. The IAPI reports that it is working to ensure that the requirements for its students and members are in line with those of IESs.
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.
One of the challenges facing the IAPI as well as the Institut Akuntan Indonesia/Indonesia Chartered Accountants (IAI) is providing access to their respective examinations, especially for graduates living in Eastern Indonesia. To deal with this, The IAPI is planning to develop a computer-based CPA exam and to establish additional test centers around the country to attract a higher number of exam participants.
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.
The IAPI should consider the revised IESs in its review of the implementation and effectiveness of its system and, in that process, review its existing requirements against those of the revised IESs. The IAPI is encouraged to consider participating in the international standard-setting process by providing comments on IESBA Exposure Drafts and contributing to public consultations.
SMO 3: International Standards on Auditing
The IAPI is responsible for the adoption of auditing standards in Indonesia. It adopted the 2010 ISAs and other IAASB pronouncements in 2012 and has translated them into Bahasa Indonesia. The IAPI’s current focus is to review and translate 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. Although the IAPI had originally planned to complete the adoption and translation of all standards by 2015, the process has been delayed to 2016.
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 Professions of the Ministry of Finance of the Republic of Indonesia to disseminate the guidelines to local universities.
The IAPI is encouraged to consider ways to reduce the time gap between the issuance of ISAs and their adoption as the Indonesian Public Accountant Professional Standards. The IAPI is also encouraged to consider participating in the international standard-setting process by responding to IAASB Exposure Drafts.
SMO 4: Code of Ethics for Professional Accountants
The IAPI is one of two bodies responsible for setting ethical requirements for accountancy professionals in Indonesia. The IAPI’s Professional Standards Board has adopted a Code of Ethics based on the 2008 IESBA Code of Ethics for its members. The IAPI reports that it is in the process of updating the existing Code to align it with the 2014 IESBA Code of Ethics.
The IAPI and the Ikatan Akuntan Indonesia/Institute of Indonesia Chartered Accountants (IAI) are collaborating on the unification of the Ethics Codes in Indonesia to ensure unified ethical requirements for all accountancy professionals. The IAI’s Code focuses on Part A and Part C of the IESBA Code, while the IAI refers to IAPI’s Code for Part B.
The IAPI is encouraged to consider developing support materials for actions it currently undertakes to support its members in understanding national ethical requirements and to ensure compliance of its members with the Code. The IAPI is encouraged 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 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 public sector 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 IAPI is one of four bodies responsible for the investigation and discipline (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.
In 2014, the KDI updated the existing I&D mechanisms and procedures to align the system with the requirements of the Public Accountants Act of 2011 and IAPI’s Articles of Association (revised 2013). When it conducted a review of its I&D system in 2015, the IAPI identified areas that do not comply with SMO 6 requirements. The areas include the consideration of public interest and liaising with outside bodies on serious offences.
Following the review, the IAPI acted to address the gaps. The IAPI is working with the Pusat Pembinaan Profesi Keuangan/Center for Supervision of Financial Service Professions of the Ministry of Finance of the Republic of Indonesia and Otoritas Jasa Keuangan/Financial Service Authority to form a three-party QA review system. This process will include joint reviews of all entities that are regulated by the three regulators and publishing reviews and sanctions on the IAPI website. This process is ongoing and no timeline has been established for its completion.
SMO 7: International Financial Reporting Standards
Although the IAPI does not have responsibility for setting accounting standards in Indonesia, it is represented in Ikatan Akuntan Indonesia/Institute of Indonesia Chartered Accountants’ (IAI) Financial Accounting Standard Board. The IAPI’s activities are focused on providing continuing professional development programs in the form of 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 and liaises with industry associations to promote the adoption of full IFRSs.
The IAPI is encouraged to consider developing specific actions it will undertake to support the IAI in the implementation of accounting standards.
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