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Prasetio Utomo told of risks in Ghalib audit

| Source: JP

Prasetio Utomo told of risks in Ghalib audit

JAKARTA (JP): The Prasetio Utomo & Arthur Andersen accountancy
firm has been urged by other public accountants to turn down the
government assignment to audit former Attorney General Andi M.
Ghalib's bank account because of stringent restrictions imposed
by the job.

Henry B.L. Toruan, an accountancy lecturer at the University
of Indonesia, said on Monday that if Prasetio Utomo implemented
the assignment under such strict limitations, the company would
not be able to maintain its integrity, independence and
professional competence as required by the Accountant Code of
Ethics.

The government assigned Prasetio Utomo to audit Ghalib's bank
account to verify whether the transfers made to it could be
classified as corruption or bribes.

The audit was ordered following the allegation by the
Indonesian Corruption Watch (ICW) last month that Attorney
General Ghalib abused his position to enrich himself through
corruptive practices.

ICW submitted copies of 16 bank accounts said to be under the
name of Ghalib and his wife to substantiate the allegation.

President B.J. Habibie last month suspended Ghalib from his
position pending the completion of investigations into the
allegation.

However, the audit assignment given to Prasetio Utomo was
limited only to Ghalib's account at the Jakarta Melawai branch of
Lippo Bank which was claimed to be a joint account with the
Indonesian Wrestling Association which he chaired.

ICW saw the restriction as quite strange because the
allegation of corruption against Ghalib was related to 16
accounts under the name of Ghalib and his wife involving
transactions of more than Rp 10 billion.

"If the assignment is meant only to verify the authenticity of
photocopies of an account, then that is not a job for a public
accountant," Toruan told a seminar on the role of accountants in
discovering crimes.

He said Prasetio Utomo would not be able to provide a reliable
professional judgment if it was not allowed to verify and audit
other bank documents and transactions related to the account.

Rudy M. Harahap of ICW, who also spoke at the same seminar,
agreed that if Prasetio Utomo agreed to audit only one of
Ghalib's bank accounts, the information to be gathered would be
biased and the judgment would be legally flawed.

"The Accountant Code of Ethics stipulates that if a public
accountant is restricted in the scope of its audit assignment it
shall turn down or quit such an assignment," Harahap said.

Harahap criticized the Honorary Council of the Indonesian
Accountants Association for remaining silent and not raising the
issue about the distorted audit assignment to Prasetio Utomo.
(vin)

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