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INDONESIAS GOVERNMENT
REGULATION CONCERNING PUBLIC
ACCOUNTANTS
SYIFA AULIA
AHMAD KAMIL
State University of Jakarta
2013
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Law No.5 of 2011
Ministryof Finance
DecreeNo.
17/PMK.01/2008
BapepamLK Rule No.
VIII A.1 &A.2
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LAW No. 5 of 2011
This law revokes Article 4 & 5 of
Law No. 34 of 1954 on the use of
Academic Title of Accountant
Consists of 62 Articles which isdevided into 16 Chapters.
LAW NO. 5 OF 2011
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TYPE OF SERVICE(Chapter II)
Assurance ServiceArticle 3, Clause (1)
Audit service on theinformation ofhistorical financial
Review service on the
information ofhistorical financial
Other insurance
service
Other than Assurance
ServiceArticle 3, Clause (3)
Accounting Financial
management
LAW NO. 5 OF 2011
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LICENSING OF THE PUBLIC ACCOUNTANT(Chapter III)
License to be the Public Accountant /
Foreign Public Accountant is provided
by the Minister Article 5, Clause (1) To obtain it, person shall meets 8
requirements Article6,Clause1(10 for Foreign
Public Accountant) Article 7,Clause (2)
It is valid for 5 years and can be
renewed Article 5, Clause 2 LAW NO. 5 OF 2011
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ESTABLISHMENT & MANAGEMENT OF KAP(Chapter IV)
Form ofBusiness of
KAP
Individual- 1 person ICPA
- Ratio of ForeignProfessional Employee toLocal: 1/10 for each levelof position
CivilPartnership /
Firm- 2/3 partners are ICPA
- 1/3 IC Non-PA partners
- Foreign partners 1/5 ofthe overal partners
Other businessforms
- 2/3 partners are ICPA
- 1/3 Non-PA partners- Foreign partner is 1/5 ofthe overal partners
Business License of KAP and the Branch office of KAP are granted by
the Minister Article18, clause 1
It may be revoked and invalid Article21 LAW NO. 5 OF 2011
Article 12-15
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RIGHTS
Achivinghonorarioum
Obtaining legal
protection
Obtaining data,information and
other documentsrelated to service
RIGHTS & PROHIBITIONS FOR PUBLIC
ACCOUNTANT (Chapter V)
PROH
IBITON
S
have/become the partnerof more than 1 KAP
Be concurrently as stateofficer, employee ofgovernment/stateinstitution
Provide service for thesame type of service on thesame period which has
been performed by otherAP
Receive/give commissions
Commit/help to commit
manipulationLAW NO. 5 OF 2011
Article 24&30
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OBLIGATIONS OF PA & KAP(Chapter V, Part 2)
OBIGATIO
NSOFPA
Joining APAPDomicile in theterritory of RI
Maintain competence
through sustainabilityprofessional training
Well-behaved, honest,resposible and having
high integrity
OBLIGA
TIONSOF
KAP&BRANCH
Have 2 professionalaudit employees
Have office/place
implement Quality
Control SystemAssign foreignpartner/employeen toarrange development
program/education forfree
Report businessactvity, financial reportto the Ministry no laterthan AprilLAW NO. 5 OF 2011
Article 25&27
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ASSOCIATION OF THE PROFESSIONAL
PUBLIC ACCOUNTANT (Chapter IX)
PA joined to APAP
The Minister assigns only 1 APAP to
implement the authority in accordance with
the Laws
APAP has authority to:
arrange and enact SPAP
conduct CPA examination
conduct sustainable professional education
conduct quality revew for the membersLAW NO. 5 OF 2011
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PROFESSIONAL PUBLIC ACCOUNTANT
COMMITTEE (Chapter X)
The Minister forms KPAP
KPAP assigns to provide consideration regarding on:
The policy on empowerment, founding, and supervision
to the PA and KAP
The arrangement of accounting standard and SPAP
Others matters related to PA profession
President ofKPAP
Governmentselement
Vice-President
of KPAP APAPs element
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Article 55
PA
Article 56
Associated
Party
Article 57,
clause (2)
Anyone
Article 57,
clause(2), (3),
(4)
Fake PA/KAP
Sentence:
imprisonment
no longer than5yrs, & fine no
more than
Rp300mil
Related to theservice:
Commit/help to
commit
manipulation,
and faking the
information
Working paper (forpurpose):
manipulating/faking
working paper
Ommiting the record of
working paper
Doesnt make workingpaper
fake documents/statements/information related
to the licensing of PA / KAP, including branch
Public Accountant Professions counterfeiter
Sentence:
Person:imprisonment
no longer than
6 yrs & fine no
ore Rp500mil
Corporation:
fine Rp1bil-
Rp3bil
CRIMINAL PROVISION(Chapter XIII)
LAW NO. 5 OF 2011
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Minister ofFinance
Decree17/PMK.01
/2008
Concerning Public AccountantService
Minister of Finance Decree17/PMK.01/2008
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Typ
eofServices
Chapte
r
II
Attestation
Audit service onFS
Review on FS
Supervison onProspectivefinancial
statement
Other attestationservice
Management Taxation
Consulting
Minister of Finance Decree
17/PMK.01/2008
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Minister of Finance represented by
General Secretary authorize public
accountant
Public Accountant provide the
services must have publicaccounting firm
To be authorized PublicAccountant, accountant must meet
several requirementPublicAccountan
t
Chapte
rIII
Minister of Finance Decree17/PMK.01/2008
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Public
AccountingFirm
ChapterIV
Public Accounting
Firm
Proprietory Partnership
Minister of Finance Decree17/PMK.01/2008
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Licensing of Public Accounting
Firm
Minister of Finance represented by
General Secretary authorize public
accounting firm
Public
AccountingFirm
ChapterIV
Minister of Finance Decree17/PMK.01/2008
To establish publicaccounting firm,
leader of PAF proposethe authorization togeneral secretary
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PAF could make agreement with
Foreign Public Accounting Firm
PAF using the name of Foreign
Public Acounting Firm at office
name, document, head of letter
ForeignP
ublicAc
countingFirm
ChapterV
Minister of Finance Decree17/PMK.01/2008
Authorization of using
the name of FPAF is
invalid when the licence
of PAF is out of date.
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Guidanceand
Superv
ision
ChapterVI
Guidance
- PA is member of Association of
Indonesia Public Accounting (IAPI)
- PA must follow Pendidikan Profesional
Berkelanjutan held by IAPI and PPAJP
- PAF reporting annual report to generalsecretary:
1. Business Activity Report
2. Financial Statement of PAF- PAF and branch office lead by PA
- PA is prohibited for being partner at
more than 1 PAFMinister of Finance Decree
17/PMK.01/2008
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General secretary conduct
annualy supervision on PAF
General Secretary could ask
IAPIs opinion
Information gathered bySecretary General must be
concealed
General Secretary reporting
supervision to public
accounting firmGuidan
ce
and
Superv
ision
ChapterVI
Supervision
Minister of Finance Decree
17/PMK.01/2008
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The minister authorized to
impose administrative
penalty PAF due to violation
of administrative provision
Penalty apply since it isapprovedP
ena
lty
ChapterVII
Minister of Finance Decree17/PMK.01/2008
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Application for the license of Public
Accountant, business license of KAP,
and/or establishment license of KAPbranch office of which is still in progress,
should be re-applied in accordance with
the provisions set in this Law
KAPA or OAA whose name has been
included collectively with the KAP should
register within no longer than 1 (one)
year since the enactment date of this
Law.Trans
itional
Provision
Chapter
VIII
Minister of Finance Decree17/PMK.01/2008
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Rule Number VIII.A.1
Registration of AccountantEngaging in Capital MarketActivities
Rule Number VIII.A.2 Independence of
accountant PerformingServices in Capital Market
BAPEPAM-LK
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Public Accountant, who engages in
Capital Market activities, shall be
registered with BAPEPAM-LK and fulfillthe requirements
This rule arrangesprocedures and
detailed-requirements
in order to enganges inCapital Market Activities
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In performing his/her professional services,
especially in issuing opinion, an Accountant
must maintain his/her independence. Public Accounting Firm must have quality
control system that provides adequate
assurance that the Public Accounting Firm orthe Personnel maintain their independence,
with respect to the size and practical nature
of the Public Accounting Firm.