IAI cannot halt malpractice among public accountant
IAI cannot halt malpractice among public accountant
JAKARTA (JP): The Indonesian Association of Accountants (IAI)
said yesterday that malpractice was common among public
accountants, but insisted it could do nothing to stop it if
clients collaborated with their accountants.
IAI's chairman, Soedarjono, said the association could only
expel members for unethical practice if clients reported
malpractice or complained.
"Unless the client makes a big fuss about it, there is really
nothing we can do," he said.
Soedarjono is also chairman of the Development Finance
Comptroller. He was answering questions on the IAI's authority
over its members.
Sources have said accountants were known to have fabricated
financial reports -- often with their clients' consent -- to
mislead those who use the reports.
The sources said a company might issue three different
financial statements: one for its shareholders, so management can
get shareholders' approval; one for the tax office, allowing it
to pay less tax; and one for its creditor banks, to get bigger
loans.
Soedarjono said IAI could only expel a member if he or she
were found guilty of malpractice.
The association could only do this after a thorough
investigation by the association's Board of Controllers, with
approval from the higher-level Board of Advisors.
"Although the association can't revoke (a member-) public
accountant's practicing license, our recommendations influence
the Ministry of Finance's decision to issue -- or revoke -- a
license to practice," he said.
Exams
Soedarjono said yesterday the association was planning to hold
special exams to regulate the quality and professional capability
of registered accountants who work as public accountants.
The Ministry of Finance's director for accounting and
assessment services, Kartomo Wirjobroto, said it was important to
standardize the quality of local public accountants so they can
compete against foreign professionals when Indonesia joined the
regional free trade areas (ASEAN and the Asia and Pacific
region).
"Accounting is a very popular profession and almost all
member-economies in the World Trade Organization (WTO) insist
that the sector be opened soon," he said.
Kartomo said this was why the government, and IAI, considered
it necessary to conduct the exams, "so Indonesian public
accountants are compatible with foreign ones when they are
exposed to global competition".
He said exams were also important to protect the public from
"accountants of low quality, lack of professional standards, no
dedication and questionable integrity".
Those eligible to sit the exams are university graduates of
accountancy who are registered at the Ministry of Finance, who
may or may not be practicing as public accountants.
Kartomo said the exams would be held twice a year, in March
and September, in Jakarta, Surabaya, Medan and Ujung Pandang. But
this first year, they would only be in Jakarta, in September.
"Those who pass will be given the title 'certified public
accountant'. We hope to achieve a quality similar to that of the
CPA accreditation in the United States," he said. (pwn)