Good Practices in Peer Review:The Joy of Peer Review

Prof. Bahrullah Akbar

Vice Chairman of SAI Indonesia

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ABOUT SAI INDONESIA (BPK RI)

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1 Headquarter Office

34 Regional Offices

7,788 Employees

Growing IT Capabilities

88 Ministries/Agencies34 Provinces

508 Regencies/Cities

115 State Owned Companies

1000+ Local Gov’t Companies

155 Billion National Budget

Audit Entities

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2

34

56

7

89

101112

13 14

1516

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Position of SAI Indonesia

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Indonesian Constitution

(UUD 1945)

The President

The People Consultative’s

AssemblyThe Parliament Senate

The Audit Board

The Supreme

Court

The Constitution

Court

The Judicial Commission

Article28 (E)

Legal Basis of Peer Review

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Audit Standard

Audit Management Guideline

4 Lines of Defense

Core Function

Oversight Functions

Internal Independent

Assurance

External Independent

Assurance

1st

line

3rd

line2nd

lineConstitution1945

Law 17/2003 State Finance

Law 1/2004 State Treasury

Law 15/2004 Audit on The

State Fin. Management

and Accountability

Law 15/2006The Audit Board

4th

line

AuditUnits:

Audit Manager(QA)

Audit Team(QC)

Supporting Units:

Financial Controller

Security Risk Management Quality Compliance

Principal Inspectorate:

Audit Quality Institutional

Quality Internal Audit Integrity

Enforcement

External Assurance:

Public Accounting Firm

PEER REVIEW

Law 15/2006The Audit Board

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• The Financial Report of the SAI of Indonesia is audited bythe Public Accountant Firm

• The Quality Control System of the SAI of Indonesia isreviewed by other SAI member of Intosai

Audit Standard

The Quality Control System of the SAI ofIndonesia is reviewed by internal reviewerand other SAI member of Intosai

PEER REVIEW EXPERIENCE

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2004

2009

2014

2019

Foundation of The Organization

1. Law of BPK (2006)2. Audit Standard & Manual (2007)3. QA Framework (2009)4. HRM Plan (2009)

Early stage of quality frame work implementation (9 pillars)

1. Enhancement QA Function2. Implementation of Assessment Center3. Competence Based Curriculum4. Transformation of Audit Report5. Revision of Performance Audit Guideline

Implementation of 4 pillars of Quality Assurance Framework

1. Board Work Protocol 2. Investigative Audit Units (2017)3. Strategic Plan Simplification4. Friendly Staff Rotation

Dev

elo

pm

ent

Sustainable

QA Framework of BPK is broader than ISSAI 40

The QA Framework of BPK

1. Leadership

2. Ethical requirement

3. Acceptance and

continuance of

client relation

4. Human Resources

Relevant

5. Engagement

Performance

6. Monitoring

1. Independence &

Mandate

2. Leadership & Internal

Governance

3. Human Resources

4. Audit Standard &

Methodology

5. Institutional Support

6. Relationship with

stakeholders

7. Continuous

Improvement

8. Result

9. Audit Performance

ISSAI 10

ISSAI 40:

1. Experience a complex audit in a geographically spread country

2. Learn how ISSAI is adapted and implemented in Indonesia

3. Opportunities and challenges

4. Expanding government services

5. Active International Contribution to ASEANSAI, ASOSAI, INTOSAI

Mutual Benefit of Peer Review

1. Experience of 3 times peer reviewed (ANZ, ARK and NIK)

2. Adopted and adapted ISSAI

3. Environment: Biggest SAI in South East Asia (6,350

employees, 34 Rep Offices)

IT growing environment

4. Conduct 3 types of audit

5. International experience (ASEANSAI, ASOSAI, INTOSAI, Audit of IAEA)

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SAI Indonesia Your SAI

Foresight

Increasing Insight

Enhancing Economy, Efficiency, Ethics, Equity and Effectiveness

Assuring Accountability

Enhancing Transparency

Combating Corruption

The Accountability Organization Maturity Model

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3 types of audit

Financial Audit

Performance Audit

Special Purpose Audit

Investigative Audit Unit

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Raja Ampat – West Papua

Tanah Lot – Bali Tanjung Puting National Park – BorneoToba Lake – North Sumatra Borobudur – Central Java

Java

Borneo Papua

Bali

Sumatra

Consider the mutual benefit of peer review as Reviewer and Reviewee

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Ďakujem

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