Auditing state accounts<\/p>\n
The four-day government conference on the auditing of state financial
\naccounts which opened on Thursday has disclosed the enormous
\ndifficulties encountered by the Supreme Audit Agency (BPK) in properly
\nexecuting its tasks and the inadequacy of the financial accountability
\nof the various government agencies. BPK's difficulties and constraints
\nseemed to have been caused mainly by the inadequate legislation
\nregarding its audit authority and function. But what makes the
\ngovernment financial accountability seemingly questionable is the fact
\nthat the audit of the state financial accounts has been based largely on
\nthe standards set by the government itself.<\/p>\n
Therefore, as BPK board member Gandhi observed at the conference, it
\nwould be understandable if many doubted the objectivity of the audit
\nreports because the audit standards were set by the party being audited
\n(the government) itself. The quality of the government's accountability
\nwould not seem so questionable if the BPK, which is constitutionally
\nsupposed to be on an equal footing with the government, were able to
\nexecute its audit authority properly.<\/p>\n
However, as discussions at the conference showed, the power of the
\nBPK in auditing the government accounts has been so limited that we get
\nthe impression that the Supreme Audit Agency is actually supreme only in
\na definitional sense. And, upon a closer look, we become aware that it
\nexhibits an extreme lack of substance.<\/p>\n
That is really worrisome because the BPK, as stipulated in the
\nConstitution, is responsible for auditing the financial accounts of the
\ncentral and provincial governments and state companies. The House of
\nRepresentatives also depends on the BPK-audited reports for forming its
\nopinions and making its decisions on the annual state budget accounts.<\/p>\n
Of course, auditing is not a goal in itself, but is merely a means
\nfor improving effectiveness and efficiency in achieving prescribed
\ngoals. Nonetheless, high-quality auditing is required to enforce good
\naccountability. Further down the line, the quality of audits is
\ndetermined largely by the accounting and auditing standards that are
\nsuitably designed for the public sector financial accounts.<\/p>\n
Gandhi also revealed that the BPK could perform only financial audits
\nand that they related to conformity with laws and regulations. Another
\nmore important aspect -- the operational audit -- to determine the
\neffectiveness and efficiency with which the government uses its
\nresources cannot be done due to the absence of standard government
\naccounting principles and uniform standards for the auditing of
\ngovernment financial accounts. Therefore, BPK cannot declare any
\nopinions on the financial accounts either of the various government
\nagencies or the government as a whole (state budget accounts).<\/p>\n
It is encouraging, though, to learn from the conference that the BPK
\nis finalizing new standards for the auditing of government financial
\naccounts. Because the standards are being formulated by BPK as a state
\nagency whose constitutional position is equal to the government itself
\nwe are confident that the standards will enhance an objective audit of
\nthe government accounts and will improve the accountability on the part
\nof the government. But we also realize that the standards themselves
\nwill not mean much if they are not fully enforced with the full support
\nof the government. Likewise, the willingness of the government is
\ncrucial for making the much-needed amendments to the 1973 law on
\nBPK's role and function possible.<\/p>\n
The legislation should indeed be adjusted because the BPK's task will
\nbecome increasingly challenging as the size and complexity of government
\ntransactions increase and new forms of revenues and new categories of
\npublic sector expenditures emerge.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/auditing-state-accounts-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}