IAI cannot halt malpractice among public accountant<\/p>\n
JAKARTA (JP): The Indonesian Association of Accountants (IAI)
\nsaid yesterday that malpractice was common among public
\naccountants, but insisted it could do nothing to stop it if
\nclients collaborated with their accountants.<\/p>\n
IAI's chairman, Soedarjono, said the association could only
\nexpel members for unethical practice if clients reported
\nmalpractice or complained.<\/p>\n
\"Unless the client makes a big fuss about it, there is really
\nnothing we can do,\" he said.<\/p>\n
Soedarjono is also chairman of the Development Finance
\nComptroller. He was answering questions on the IAI's authority
\nover its members.<\/p>\n
Sources have said accountants were known to have fabricated
\nfinancial reports -- often with their clients' consent -- to
\nmislead those who use the reports.<\/p>\n
The sources said a company might issue three different
\nfinancial statements: one for its shareholders, so management can
\nget shareholders' approval; one for the tax office, allowing it
\nto pay less tax; and one for its creditor banks, to get bigger
\nloans.<\/p>\n
Soedarjono said IAI could only expel a member if he or she
\nwere found guilty of malpractice.<\/p>\n
The association could only do this after a thorough
\ninvestigation by the association's Board of Controllers, with
\napproval from the higher-level Board of Advisors.<\/p>\n
\"Although the association can't revoke (a member-) public
\naccountant's practicing license, our recommendations influence
\nthe Ministry of Finance's decision to issue -- or revoke -- a
\nlicense to practice,\" he said.<\/p>\n
Exams<\/p>\n
Soedarjono said yesterday the association was planning to hold
\nspecial exams to regulate the quality and professional capability
\nof registered accountants who work as public accountants.<\/p>\n
The Ministry of Finance's director for accounting and
\nassessment services, Kartomo Wirjobroto, said it was important to
\nstandardize the quality of local public accountants so they can
\ncompete against foreign professionals when Indonesia joined the
\nregional free trade areas (ASEAN and the Asia and Pacific
\nregion).<\/p>\n
\"Accounting is a very popular profession and almost all
\nmember-economies in the World Trade Organization (WTO) insist
\nthat the sector be opened soon,\" he said.<\/p>\n
Kartomo said this was why the government, and IAI, considered
\nit necessary to conduct the exams, \"so Indonesian public
\naccountants are compatible with foreign ones when they are
\nexposed to global competition\".<\/p>\n
He said exams were also important to protect the public from
\n\"accountants of low quality, lack of professional standards, no
\ndedication and questionable integrity\".<\/p>\n
Those eligible to sit the exams are university graduates of
\naccountancy who are registered at the Ministry of Finance, who
\nmay or may not be practicing as public accountants.<\/p>\n
Kartomo said the exams would be held twice a year, in March
\nand September, in Jakarta, Surabaya, Medan and Ujung Pandang. But
\nthis first year, they would only be in Jakarta, in September.<\/p>\n
\"Those who pass will be given the title 'certified public
\naccountant'. We hope to achieve a quality similar to that of the
\nCPA accreditation in the United States,\" he said. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/iai-cannot-halt-malpractice-among-public-accountant-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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