Recent fraud cases disgrace accountants<\/p>\n
JAKARTA (JP): The chairman of the Association of Indonesian
\nAccountants, Soedarjono, acknowledged yesterday that his
\norganization must address integrity problems plaguing the
\naccounting profession in Indonesia.<\/p>\n
Soedarjono told newsmen after a meeting with Vice President
\nTry Sutrisno that the integrity of accountants has come under
\nincreased scrutiny as a result of several well publicized cases
\nof project price mark-ups, bad credits and manipulation of
\nfinancial reports.<\/p>\n
"Some accountants are alleged to have collude with businessmen
\nin manipulating financial reports," added Soedarjono.<\/p>\n
He also said that some accountants may have helped investors
\nmark up the costs of their projects in attempts to secure larger
\nloans.<\/p>\n
"The price mark-ups have enabled some borrowers to receive
\nmuch larger loans than they required for their projects," added
\nSoedarjono, who is also chief of the Government Audit Agency
\n(BPKP).<\/p>\n
Soedarjono acknowledged, however, that it was difficult for
\nthe association to prove such allegations because of a lack of
\ntransparency in the country's information system.<\/p>\n
"Under the existing accounting principles, it is extremely
\ndifficult to detect the alleged manipulation," he said, adding
\nthat collusion is often detected only when the problems it
\ncreates surface and are brought to the attention of the public.<\/p>\n
"In Singapore, you can get full access to comprehensive price
\ninformation by paying only 10 or 15 dollars. That is rather
\nimpossible here," he pointed out.<\/p>\n
The association's executive board reported to the Vice
\nPresident on the results of the organization's national meeting
\nrecently held in Bandung, as well as the planned congress of the
\nASEAN Federation of Accountants in Bali on Oct.5.<\/p>\n
Radius Prawiro, former coordinating minister for economic and
\nfinancial affairs, also joined the meeting with the Vice
\nPresident and acted in his capacity as chairman of the
\norganization's Advisory Board.<\/p>\n
Soedarjono said that Indonesian accountants should work harder
\nto improve their professional image so they cam compete with
\nforeign counterparts in the global marketplace.<\/p>\n
Eventually foreign accountants will be free to work in
\nIndonesia under the World Trade Organization's global trading
\nsystem. Indonesian accountants should prepare now to face future
\ninternational competition, Soedarjono said.<\/p>\n
At present, foreign accountants are allowed only to offer
\ntheir services in cooperation with local accounting offices.(hen)<\/p>",
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"sponsor": "Okusi Associates",
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