Evaluation of the Findings

by PPPK regarding the Audit

Opinion of KAP ABC
towards PT JKL
Proposed by: Nisita Sarinarulita (1806174130)

Supervisor: Kurnia Irwansyah Rais S.E., M.Ak.

Table of
Contents

01
Chapter 1:
02
Chapter 2: Company Profile &
03
Chapter 3:
Introduction Internship Activities Evaluation

04 05
Chapter 4: Conclusion Chapter 5: Self
& Recommendation Reflection
 Chapter 1: Introduction

The reasons in choosing to write an
Internship Report:
1. Gain new insights and
experience in the working
industry
2. Implement the theory that have
been learned into real-life cases
The reasons in choosing to intern at Internship Activities:
PPPK: 1. Analysing the financial
statement, specifically the Fixed
1. Broaden connection with Assets of PT JKL
experienced financial
2. Understanding several PSAK and
professionals
SA to evaluate the compliance
2. To learn the work of financial of both KAP and PPPK
professionals from different 3. Evaluating the Findings by PPPK
perspectives towards KAP ABC

The reasons in choosing the topic:

1. The internship activities focuses on the
evaluation of the Findings by PPPK
2. The discussion of the case revolves around
the audit opinion and the measurement done
by KAP ABC
The Purpose of the Internship Report:
1. Evaluation of the PPPK findings regarding the
audit opinion of KAP ABC towards PT JKL
2. Evaluation on self-reflection and self-
awareness towards the internship experience
that have been done
Chapter 2: Company Profile & Internship
Activity
Pusat Pembinaan Profesi Keuangan - PPPK
● Focuses on regulating, inspecting, and the
growth of financial professionals.
● Bidang Pelaporan, Bidang Pengembangan,
Bidang Pemeriksaan → Where the internship
activities were conducted
Chapter 2: Company Profile &
Internship Activity
PT JKL

● An enterprise that operates in the mining of

KAP ABC iron ore, coal, and mining minerals.
● Public Accounting Firm that has been operating ● The industry ranges from producing and
since 1971. A part of the ABC Global. distributing steel sponges, steel slabs, hot sheet
● Their goal is to deliver their services to help steel, etc.
clients in improving transparency, governance
accountability, and financial performance and ● The business process consists of producing half-
return. finished goods into finished goods (ironmaking
production facilities).
KAP ABC’s Work Line
1. Audit and Assurance
2. Advisory Deals
3. Actuarial Services
4. Consulting
5. Tax
Chapter 2: Company Profile &
Internship Activity

PT JKL’ s case
● Fixed Assets in the form of a plantation

2011 2013 2015 2016 2017 2019

Planning the Construction Technology Feasibility Impairment Change of
Plantation. of the issues. study. calculation by auditor to KAP
plantation. KAP XYZ. ABC.
Plantation caught
fire.
Calculation of Fixed Assets by KAP ABC
Chapter 2: Company Profile &
Internship Activity
Calculation of Fixed Assets by KAP ABC - Restatement of Impairment Assets

Internship Activities:
● Understanding PSAK 16 : Fixed Assets
● Understanding PSAK 48 : Impairment of Assets → Focusing on the recoverable
amount concept.
● Understanding PSAK 68 : Fair Value Measurement → Focusing on the principle
of highest and best use, as well as market participants.
● Evaluating the inspector teams findings
● Finalize the evaluation of findings by PPPK
Chapter 3: Evaluation

PMKRI No.186/PMK.01/2021 - Inspection Process by PPPK

Article 48 regarding PPPK’s field inspection. The procedures ● Yearly inspection done by PPPK
are; ● KMKRI No.46/KM.01/2020 as the basis of inspection
1. Submit requests for documents and/or working papers for year 2021
2. Reviewing documents and/or working papers
3. Make requests for information related to tracing
documents and working papers if necessary, either
through interviews, clarifications and/or confirmations
to the Public Accountant, KAP leader, KAP branch
leader being examined, Associated Parties, and/or the
Asosiasi Profesi Akuntan Publik
4. Submit the provisional conclusion of the audit results in
writing to the Public Accountant, KAP leader, and/or
KAP branch head being examined before discussing ● The inspection is done to assess the compliance level
the provisional conclusion of the audit results, and towards the regulations and standards that have been
set
5. Discussing the provisional conclusions of the audit
results with the Public Accountant, KAP leader, and/or
branch head of the audited KAP, as well as holding a
closing meeting
Chapter 3: Evaluation
The Findings by PPPK are to justify why the impairment and the final value of assets should not be recognized
as zero by KAP ABC and PT JKL.

● Based on the calculation of Fixed Assets done by the audit team of KAP ABC, they decided to recognize the
final value of assets using the value in use measurement
● There are several reasonings why KAP ABC decided to use Value in Use measurement as their measurement
method
● KJPP Calculation by the management team of PT JKL
○ The KJPP Calculation cannot find the market value nor the comparable value for the fixed assets of PT
JKL
○ The cost approach cannot be used as a measurement method because the fixed assets were currently
not operating
Chapter 3: Evaluation
Reasonings by KAP ABC why they chose to use Value in Use measurement
PSAK 68 principle
of “Highest and
Best Use”
Paragraph 28 stated that
the highest and best value
of an assets must fulfilled:
1. Physically possible
2. Legally permissible
3. Financially feasible
The management team of
PT JKL also stated that the
assets were only
momentarily ceased. And
with the specified
technology that the assets
have, it can only be utilized
by PT JKL.
Depreciated
No Market Management
Replacement Cost
Participants Intentions
Usage of IAS 36
● PT JKL had offered the Basis of Conclusion IAS 36 ● The management
assets to third-party “IASC believed that were initiating a
entities as a form of replacement cost transformation plan.
partnership, but there techniques are not
● PT JKL is planning to
were no interests. appropriate to measure the
do a collaborative
recoverable amount of an
● Partnership with third- operation with third-
asset.”
parties will not parties to rebuild the
generate adequate plantation and utilize
returns. ● The market value them by the year of
● PT JKL were not could not be 2022.
willing to sell the generated.
assets as scrap. ● Income approach
cannot be use.
● Cost approach
cannot be use.
Chapter 3: Evaluation
PPPK’s Findings
Finding 1 : PPPK’s Philosophy regarding PSAK
● PSAK 48 Paragraph 18 in which the recognition of
recoverable amount should be determined by
comparing the highest value of value in use and
fair value less cost of disposal.
● PSAK 48 stated that the entity should assess and
recognize the best possible benefit from the
assets. The calculation using Sales Value should
also be considered other than Value in Use.
● PSAK 68 regulates the Fair Value measurement.
Calculating the fair value of the assets does not
mean that the assets must be sold. In this case, it
will generate a higher amount of scrap value that
is higher than zero.
Finding 2 : The concept of Highest and Best Use of an Asset
● PSAK 68 Paragraph 27 stated that the highest and
best value of the assets must be recognized
● In Paragraph 28 —> The assets must be physically,
legally, and financially feasible to be recognized
● The asset is legally permissible, where the
calculation of fair value (scrap value) can be done.
And calculating the fair value does not mean that
the asset must be sold.
● The asset is financially feasible, where it can be
calculated using the in-situ approach and the scrap
value will be the ultimate way out to sell the
assets.
Chapter 3: Evaluation
PPPK’s Findings

Finding 3 : DRC and Basis of Conclusion IAS 36 Finding 4 : Management Intentions

● The usage of Basis of Conclusion IAS 36 by KAP ● The management team of PT JKL still strongly
ABC should not be done. believed that the asset will be use again in the
● In PSAK 25 Paragraph 7 until 12 it is regulated that future. They are planning a transformation plan in
there are hierarchies that the audit teams must year 2022 thus the management team did not
follow regarding the usage of the regulations and want to recognize the asset as scrap value.
standards. If there is a PSAK and SA that regulates ● This furthermore confirmed the findings of the
the related problems, then the audit team must inspector team where the assets should be valued
prioritize using PSAK. higher than zero.
● In PSAK 48 there was a statement that if the
calculation of fair value is hard to be obtained,
then value in use can be used as a recoverable
amount
● In PSAK 68 it is stated that the fair value can also
be measured using sales value or income
approach.
Chapter 3: Evaluation
PPPK’s Findings

Finding 5 : Market Participant PPPK’s Further Action towards the findings

● KAP ABC stated that there were no available ● The audit opinion and the measurement of fixed
market participants because until the recording assets by KAP ABC was not in accordance with the
date there were still no interested parties. existing PSAK.
● The fixed assets that were offered by PT JKL ● PPPK will take further action in handling KAP ABC
requires a high technology and it is an expensive in agreement of the available policies within the
assets thus it takes more time in searching for organization.
partnership.
● Knowing the character of the fixed assets, the
inspector teams stated that no buyers does not
mean no market participants.
● The further search for market participants by PT
JKL showed that the fixed assets still have a higher
value than zero.
Chapter 4 : Conclusion and Recommendation
Conclusion Recommendation

There was an inconsistency between the PSAK and the ● KAP ABC should understand and implement the
audit process as well as measurement done by KAP ABC PSAK correctly
which then led to the findings by PPPK. ● KAP ABC should have considered all the available
● KAP ABC measurement in recognizing the final value measurement such as sales value to get a higher
of assets as zero is not in accordance with PSAK 48 result of fixed assets
Paragraph 18 where the measurement of assets ● The inspection team of PPPK should be more
should be calculated by its best value. transparent in disclosing whether each KAP have
been in accordance to the regulations or not.
● KAP ABC can still calculate the scrap value of the
fixed assets using Fair Value Measurement as
regulated in PSAK 68.
● PPPK had done the inspection in accordance to
PMKRI 186/PMK.01/2021.
● The findings by PPPK are in accordance to the
available PSAK.
Chapter 5: Feelings and Thoughts

Experience at Bidang Experience at Bidang

Experience at Bidang Pemeriksaan
Pelaporan Pengembangan

Before Internship: Before Internship: Before Internship:

● Nervous and delighted to
be working as an intern
● Enthusiastic for the work
and experience at Bidang
Pelaporan
During Internship:
● Felt at ease in doing the
task that was given since
writer was familiar with it
● Felt responsible and driven
in finishing the task
● Excited to meet new
supervisor and new teams
● Challenged with the task
that was given
During Internship:
● Felt under-performanced
when doing in-depth
analysis
● Felt appreciative of all the
constructive feedbacks
● Curious of the case and
discussion that will be
conducted throughout the
month
During Internship:
● Felt overwhelmed with the
unfamiliar and complex
materials
● Nerve-wrecking when
presenting the task

After Internship: After Internship: After Internship:

● Relieved that the task was ● Happy to gain new ● Thankful towards the
managed to be completed perspective regarding supervisors
which careers to take and ● Content with the tasks that
which skills to grow managed to be finished
 Chapter 5: Self Reflection
Analysis
Accomplishments:
1. Being able to communicate and
connect well with the team
2. Gaining new insightful
knowledge
3. Learn to be more responsible
and accountable in fulfilling the
job’s obligations
Limitations:
4. Limitations in accessing the
informations of the materials
5. Lack of work-experience that led
to difficulties in understanding
comprehensive materials
6. Unable to do in-depth research
for the materials
Evaluation
Push-factors:
1. Being a student in the most
reputable university in Indonesia
2. Experienced in studying abroad
where research were conducted
3. Experienced in being a part of
the campus committee
4. Accustomed to being guided by
the lecturers
5. Inexperience in the working
environment
Conclusion
● Managed to work with
supportive teams and
supervisors
● Gained new insights and
connection
● Gained new perspective
towards the available
professional jobs
● Managed to do a self-review to
improve better in the future
Chapter 5: Self Reflection
Follow-up Plans

2022 2023 2024 2025

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Thank You nisitanisa@gmail.com
+62812 8118 3008