PublicAccounting

Firms in the States

Finance Auditing

Directorate of Evaluation and Audit Reporting

1. BPK's Mandate
a. Legal Framework
b. Underlying Reasons
c. States Finance's Auditing
Framework
2. Licensed Public Accounting
Firms (PAF)
3. Contracting Audit (PAF's Audit
on Behalf of BPK)
 BPK's Mandate: Legal Framework
Law No. 15/2004 concerning The
State Financial Management and
Accountability Audit
Article 3 Clause (1): Audit of state finance
management and accountability shall be
conducted by BPK which covers all aspects of
state finance as agreed in Law No. 17 year
2003 Article 2 regarding State Finance
Article 9 Clause (3):
In conducting its audit, BPK may assign the
audit to other auditor and/or expert from
outside BPK to audit for and on behalf of BPK
Article 3 Clause (2) and the elucidation
If the audit is implemented by public
accountant based on the provision of law,
report on the results of such audit must be
submitted to BPK to be evaluated and shall be
subsequently published.
Law No. 15/2006 concerning Audit
Board
Article 3 Clause (1): BPK conducts audit on
state finance management and accountability
which is managed by central government and
local government, other state’s institutions,
Central Bank, state and local-owned
enterprises, and other state‘s bodies.
Article 9 Clause (1) Letter g:
In implementing its duties, BPK shall have the
authorities to employ expert and/or auditors
outside BPK who shall work for and on behalf
of BPK.
Article 6 Clause (4) and the elucidation
If the audit is implemented by public
accountant based on the provision of law,
report on the results of such audit must be
submitted to BPK to be evaluated and shall be
subsequently published.
BPK's Mandate: Underlying Reasons
Deficiency of number of auditors:
Law No. 15/2004 Concerning Audit on State
Finance Management and Accountability

Explanation on Article 9 Clause (3):

Using auditors from outside of BPK shall be conducted
when BPK does not have/does not have sufficient
auditors for audit engagement.

The auditors mentioned above shall be from PAF and

government's oversight agencies that are comply to
BPK's requirements.

BPK'S STRATEGIC PLANNING

BPK's optimizing its roles in insights and foresights by

providing stakeholders with policies alternatives.
 BPK's Mandate:
State Finance's Auditing Framework (by Type of Entities)
 BPK's Regulation No. BPK's Regulation no. 1
1 Year 2008 Year 2016 Concerning
Concerning Audit by Requirement for a
Other Parties Outside Licensed PAF
BPK

Administrative
All PAF which audit
requirements for PAF
state finance shall be
licensed by BPK. Technical requirements
at least PAF has 1
Public Accountant and
The requirements for a 2 Staffs whom have

Licenced PAF
licensed PAF are been pass the exam as a
regulated in BPK's state finance's auditors
Reg. No. 1 Year 2016 Administrative
requirements for Public
Accountant and its
staffs
 UPDATING

1. PAF database
a. Chairman
b. List of public accountants (PA)
c. Address, emails, phone
2. PA database
3. Staffs/Auditors

DATA RECONCILIATION
Licensed PAF:
Maintaining Ministry of Finance as regulators
Database (overseeing)

Indonesia Institute of Certified Public

Accountants (IICPA)
https://sikap.bpk.go.id
 Licensed PAF:
Maintaining database using SIKAP
https://sikap.bpk.go.id
Has been developed
and used since 2012
In 2021 it is
developed to
accommodate an
online registration
and online updating

In 2022 it will be
integrated to
database of Ministry
of Finance and IICPA
Contracting Audit (PAF's Audit on Behalf of BPK):
Implementation in 2016-2021
 Contracting Audit (PAF's Audit on Behalf of BPK):
Annual Timeline
Aug
Jun-July 20x1
20x1
Annual Comprehensive Reporting
Mar-May Evaluation on each
activities (includes:
Jan-Feb 20x1 Individual
20x1 Audit Performance
Evaluation)
Oct 20xx- Pre- Engage-
Jan 20x1 engagement ments
Mar-Sept Training
Procure-
20xx
ment of PAF
Annual
Planning Annual Planning 20x2
20x1
Contracting Audit (PAF's Audit on Behalf of BPK):
Annual Planning
Contracting Audit (PAF's Audit on Behalf of BPK):
Procurement Process
 Contracting Audit (PAF's Audit on Behalf of BPK):
Procurement's Policies & Procedures
Secretary General Decree concerning
Procurement Mechanism
Guidance concerning PAF Procurements

Public Accounting Firms Criteria

Shall be a licensed PAF in BPK. It has acquired a certification as a state’s finance
auditors by BPK.
PAF has never received sanctions either from Ministry of Finance or Public
Accountant Association (IAPI) in the last 3 years, or Code of Ethics Chamber of BPK.
PAF have no financial relationship with the audited entities in the last 2 years.
PAF is not currently in the process of procurement or had been as the external
auditor to audit BPK’s financial report in the last 2 years.
PAF shall not audit the same audit entities for 3 concurrent years.
PAF (public accountant) shall not involved in political activities in the last 2 years.
Contracting Audit (PAF's Audit on Behalf of BPK):
Procurement's Application System

SIKAP for procurement has been developed and

used since 2018. It will have full features in 2022.
Thank You
ຂອບໃຈ

GET IN TOUCH
Jakarta, Indonesia

62 21 25549000

dit.epp@bpk.go.id

www.bpk.go.id
Public
Accounting
Firms in the
States Finance
Auditing

Directorate of Evaluation and Audit Reporting

1. BPK's Mandate
a. Legal Framework
b. Underlying Reasons
c. States Finance's Auditing
Framework
2. Licensed Public Accounting
Firms (PAF)
3. Contracting Audit (PAF's Audit
on Behalf of BPK)
4. BPK's Evaluation on State
Finance's Audit by PAF
 BPK's Mandate: Legal Framework
Law No. 15/2004 concerning Audit
on State Finance Management and
Accountability
Article 3 Clause (1): Audit of state finance
management and accountability shall be
conducted by BPK which covers all aspects of
state finance as agreed in Law No. 17 year
2003 Article 2 regarding State Finance
Article 9 Clause (3):
In conducting its audit, BPK may assign the
audit to other auditor and/or expert from
outside BPK to audit on behalf of BPK
Law No. 15/2006 concerning the
Audit Board of the Republic of
Indonesia
Article 3 Clause (1): BPK conducts audit on
state finance management and accountability
which is managed by central government and
local government, other state’s institutions,
Central Bank, state and local-owned
enterprises, and other state‘s bodies.
Article 9 Clause (1) Letter g:
In conducting its tasks, BPK has the authority
to use expert and/or auditor from outside
BPK to work on behalf of BPK.
BPK's Mandate: Underlying Reasons
Deficiency of number of auditors:
Law No. 15/2004 Concerning Audit on State
Finance Management and Accountability

Explanation on Article 9 Clause (3):

Using auditors from outside of BPK shall be conducted
when BPK does not have/does not have sufficient
auditors for audit engagement.

The auditors mentioned above shall be from PAF and

government's oversight agencies that are comply to
BPK's requirements.

BPK'S STRATEGIC PLANNING

BPK's optimizing its roles in insights and foresights by

providing stakeholders with policies alternatives.
 BPK's Mandate:
State Finance's Auditing Framework (by Type of Entities)
 BPK's Mandate:
State Finance's Auditing Framework (Number of Entities)
±33.875 entities
 BPK's Regulation No. BPK's Regulation no. 1
1 Year 2008 Year 2016 Concerning
Concerning Audit by Requirement for a
Other Parties Outside Licensed PAF
BPK

Administrative
All PAF which audit
requirements for PAF
state finance shall be
licensed by BPK. Technical requirements
at least PAF has 1
Public Accountant and
The requirements for a
2 Staffs whom have

Licenced PAF
licensed PAF are been pass the exam as a
regulated in BPK's state finance's auditors
Reg. No. 1 Year 2016
Adm requirements for
Public Accountant and
its staffs
 UPDATING

1. PAF database
a. Chairman
b. List of public accountants (PA)
c. Address, emails, phone
2. PA database
3. Staffs/Auditors

DATA RECONCILIATION
Licensed PAF:
Maintaining Ministry of Finance as regulators
Database (overseeing)

Indonesia Institute of Certified Public

Accountants (IICPA)
https://sikap.bpk.go.id
 Licensed PAF:
Maintaining database using SIKAP
https://sikap.bpk.go.id
Has been developed
and used since 2012
In 2021 it is
developed to
accommodate an
online registration
and online updating

In 2022 it will be
integrated to
database of Ministry
of Finance and IICPA
Contracting Audit (PAF's Audit on Behalf of BPK):
Implementation in 2016-2021
 Contracting Audit (PAF's Audit on Behalf of BPK):
Annual Timeline
Aug
Jun-July 20x1
20x1
Annual Comprehensive Reporting
Mar-May Evaluation on the each
activities (includes:
Jan-Feb 20x1 Individual
20x1 Audit Performance
Evaluation)
Oct 20xx- Pre- Engage-
Jan 20x1 engagement ments
Mar-Sept Training
Procure-
20xx
ment of PAF
Annual
Planning Annual Planning 20x2
20x1
Contracting Audit (PAF's Audit on Behalf of BPK):
Annual Planning
Contracting Audit (PAF's Audit on Behalf of BPK):
Procurement Process
 Contracting Audit (PAF's Audit on Behalf of BPK):
Procurement's Policies & Procedures
Secretary General Decree concerning
Procurement Mechanism
Guidance concerning PAF Procurements

Public Accounting Firms Criteria

Shall be a licensed PAF in BPK. It has acquired a certification as a state’s finance
auditors by BPK.
PAF has never received sanctions either from Ministry of Finance or Public
Accountant Association (IAPI) in the last 3 years, or Code of Ethics Chamber of BPK.
PAF have no financial relationship with the audited entities in the last 2 years.
PAF is not currently in the process of procurement or had been as the external
auditor to audit BPK’s financial report in the last 2 years.
PAF shall not audit the same audit entities for 3 concurrent years.
PAF (public accountant) shall not involved in political activities in the last 2 years.
Contracting Audit (PAF's Audit on Behalf of BPK):
Procurement's Application System

SIKAP for procurement has been developed and

used since 2018. It will have full features in 2022.
Contracting Audit (PAF's Audit on Behalf of BPK):
The Content of Contract Documents
Contracting Audit (PAF's Audit on Behalf of BPK):
Individual Evaluation Performance
Contracting Audit (PAF's Audit on Behalf of BPK):
Individual Evaluation Performance
Contracting Audit (PAF's Audit on Behalf of BPK):
Challenges
1. Assuring Competency of Public
Accountant and its
Staffs/Auditors
2. Different accounting standards
used in public sector and
private sector
3. Different auditing standards
used in public sector and
private sector
BPK's Evaluation on State Finance's Audit by PAC:
Implementation

POLICY AND ADRESSEE OF

PROCEDURES THE REPORT
BPK's Decree
1. Legislative
concerning Evaluation
on State Finance's 2. PAF
Audit by PAC 3. Ministry of Gov't
Companies
4. Ministry of
Finance OUTPUT
Negative Assurance
Recommendation to
PAF and Audited
Entities
Thank You
ຂອບໃຈ

GET IN TOUCH
Jakarta, Indonesia

62 21 25549000

dit.epp@bpk.go.id

www.bpk.go.id