Control of public auditors tightened

Control of public auditors tightened

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) will tighten its control of public accountants by blacklisting the errant ones, Bapepam's chairman, I Putu Gede Ary Suta, said yesterday.

At the signing of a memorandum of understanding between the Jakarta Stock Exchange (JSX) and the Indonesian Accountants Association, Putu said that accountants play a crucial role in maintaining the public's trust in the capital market.

"Public accountants must realize that they play a key role in creating market integrity because any product they make will become an important reference for the investing public," Putu noted.

He suggested that the association establish a special commission to review financial reports of publicly listed companies audited by its members.

"By reviewing the reports, the association could help boost market integrity, which in turn will increase the investing public's confidence," he said.

Realizing the strategic position of public accountants, Putu said Bapepam will carefully monitor their activities and blacklist accountants who violate the accounting standard in the capital market.

There are 103 public accountants registered with Bapepam.

JSX's president, Hasan Zein Mahmud, and the association's chairman Soedaryono, who both signed the agreement, shared Putu's opinion.

Hasan stressed that accountants must improve their expertise and personal integrity, in line with the improvement of the capital market.

Under the agreement, JSX and the association agreed to improve the participation of accountants in developing capital market integrity. Accountants will keep themselves apprised of market developments, such as scripless and remote trading, which means they will provide more accurate and valid information. (08)