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)