Recent fraud cases disgrace accountants

Recent fraud cases disgrace accountants

JAKARTA (JP): The chairman of the Association of Indonesian
Accountants, Soedarjono, acknowledged yesterday that his
organization must address integrity problems plaguing the
accounting profession in Indonesia.

Soedarjono told newsmen after a meeting with Vice President
Try Sutrisno that the integrity of accountants has come under
increased scrutiny as a result of several well publicized cases
of project price mark-ups, bad credits and manipulation of
financial reports.

"Some accountants are alleged to have collude with businessmen
in manipulating financial reports," added Soedarjono.

He also said that some accountants may have helped investors
mark up the costs of their projects in attempts to secure larger
loans.

"The price mark-ups have enabled some borrowers to receive
much larger loans than they required for their projects," added
Soedarjono, who is also chief of the Government Audit Agency
(BPKP).

Soedarjono acknowledged, however, that it was difficult for
the association to prove such allegations because of a lack of
transparency in the country's information system.

"Under the existing accounting principles, it is extremely
difficult to detect the alleged manipulation," he said, adding
that collusion is often detected only when the problems it
creates surface and are brought to the attention of the public.

"In Singapore, you can get full access to comprehensive price
information by paying only 10 or 15 dollars. That is rather
impossible here," he pointed out.

The association's executive board reported to the Vice
President on the results of the organization's national meeting
recently held in Bandung, as well as the planned congress of the
ASEAN Federation of Accountants in Bali on Oct.5.

Radius Prawiro, former coordinating minister for economic and
financial affairs, also joined the meeting with the Vice
President and acted in his capacity as chairman of the
organization's Advisory Board.

Soedarjono said that Indonesian accountants should work harder
to improve their professional image so they cam compete with
foreign counterparts in the global marketplace.

Eventually foreign accountants will be free to work in
Indonesia under the World Trade Organization's global trading
system. Indonesian accountants should prepare now to face future
international competition, Soedarjono said.

At present, foreign accountants are allowed only to offer
their services in cooperation with local accounting offices.(hen)