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All state auditors to use standardized system soon

All state auditors to use standardized system soon

JAKARTA (JP): All government supervisory agencies will start using a standardized system on April 1 for auditing government institutions, companies and projects, says the chief of the Supreme Audit Agency (BPK), J.B. Sumarlin.

"We have designed the system, called the government auditing standard, to cover not only the financial auditing but also the accounting supervision of government institutions," Sumarlin said in his speech at a ceremony here yesterday to commemorate BPK's 48th anniversary.

He said the new standard will be used by all the government's supervisory agencies, including the inspectorate generals of ministries and the Government Audit Agency (BPKP).

Sumarlin explained that the new system will include a new accounting system for the state budget and comprehensive management of offshore loans, as well as accounting supervision of budgetary spending.

"The accounting supervision in the planned auditing system is new in that it will authorize BPK to evaluate the accountability as well as efficiency and effectiveness of state budget implementation," he said.

He said the new auditing system would allow BPK not only to match the balance between revenue and spending under the state budget and reveal any irregularities to the House of Representatives (DPR), but also to comment fully on its findings.

Another BPK official, Gandhi, told reporters that agency's current auditing system has not allowed the agency to state its opinion of the performance of government institutions.

Under the new system the agency will be permitted to go outside strict accounting principles in providing assessments of the reports which it audits.

Objectivity

Sumarlin was confident that the new standard would improve objectivity in the auditing of government accounts.

"We have designed the system in such a way that any irregularities, malfeasance and manipulation of the state budget will be easily traced," he added.

Another BPK official, Rivai Siata, told The Jakarta Post that the new system would also emphasize the independence of the agency from the government, which is guaranteed by the constitution.

He said that the new system will simplify cross-checking on auditing reports of various supervisory bodies because they will adopt similar procedures.

"With the standardized system, BPK, BPKP and other auditing boards will not overlap in auditing and supervising government institutions," he said.

Gandhi acknowledged that the new system requires a high degree of professionalism on the part of auditors.(fhp)

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