Institutions to formulate standards for internal auditing,<\/p>\n
JAKARTA (JP): Bank Indonesia, the central bank, yesterday
\nassigned American and domestic institutions to formulate
\nstandards for internal bank auditing.<\/p>\n
Amir Abbas Sabrudin, a spokesman for Bank Indonesia, said
\ncooperation with the Institute of Internal Auditors of the United
\nStates and the Indonesian Accountant Association will help
\nimprove the internal auditing systems of banks in the country and
\nthe quality of their financial reports.<\/p>\n
Under an agreement signed yesterday, the American institute
\nwill standardize the internal auditing system of Indonesian banks
\nby formulating general standards on policy, professionalism,
\norganizations, management, supervision and administration.<\/p>\n
In relations to general policies, for example, the concept
\nwill have to describe the mission and authorities of internal
\nauditors as well as the scope and norms of auditing.<\/p>\n
The concept will also include the criteria for internal
\nauditors and the formulas for the planning, implementation and
\nreporting of auditing.<\/p>\n
The American institute is also required to design a curriculum
\nfor an internal auditors course.<\/p>\n
\"The internal auditing of Indonesian banks is expected to be
\nmore effective after the implementation of the auditing standards
\nto be formulated by the Institute of Internal Auditors,\" Amir
\nsaid.<\/p>\n
Accounting<\/p>\n
Under the other agreement signed yesterday, the central bank
\nwants the Indonesian Accountant Association to formulate
\nstandards for financial accounting and reporting of banks.<\/p>\n
The standards can also be used by companies which list their
\nshares on the capital market.<\/p>\n
Amir explained that the standards to be formulated by the
\nassociation will include those for the integration of the
\nfinancial reports of a company and its subsidiary or subsidiaries
\nin a consolidated report and for interim financial reports.<\/p>\n
The association is also required to formulate the standard for
\ninvestment accounting, which describes revenues from investment
\nin shares, bonds and other securities, and the standard for the
\naccounting of mergers and share acquisitions.<\/p>\n
The standards to be formulated will also explain how to
\ncalculate the earnings per share of a company and how to disclose
\ndata on transactions among companies with special relations.<\/p>\n
\"We hope the central bank's cooperation with the accountant
\nassociation will help banks and publicly-listed companies to
\nformulate their financial reports in a standardized way,\" Amir
\nsaid.<\/p>\n
According to Law No. 7\/1992, banks and publicly-listed firms
\nare required to publish their financial reports in the mass media
\nquarterly and semi-annually respectively. (riz)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/institutions-to-formulate-standards-for-internal-auditing-1447899208",
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"sponsor": "Okusi Associates",
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