Financial audits are an essential tool for ensuring that companies are operating within the law and are meeting their fiscal obligations. They can identify financial irregularities, fraud, and other financial risks, and provide assurance to stakeholders, including investors, creditors, and customers, that the company’s financial statements are reliable and fairly stated.
Corporate financial audits in almost any country can be complicated and Indonesia is no exception. Not only are they complicated, but standards regarding financial audits frequently change. Companies risk failing to comply, which can result in damage to a company’s reputation and a lack of investor confidence. To avoid any of that, companies need a specialist in quality auditing of corporate or individual financial statements such as Y. Santosa dan Rekan (YSR) Certified Public Accountants, a Member Firm of the global Praxity Alliance.
Tjiendrajaya Yamin, Managing Partner of YSR, says, “There are many rubber stamp financial auditors that will approve whatever is given to them by an individual or corporate management without much review, but a quality financial audit through a trusted Certified Public Accountants firm with an international brand, offers an individual or a corporation the confidence of a job well done. Regular quality financial audits enhance a company’s credibility and reputation among stakeholders, including investors, lenders, and customers. It demonstrates that the company takes financial compliance seriously and is committed to following best practices.”
A quality financial audit ensures that an individual or company is complying with all relevant regulations and requirements. This potentially reduces any financial liabilities and may prevent penalties, fines, and legal issues that might arise from noncompliance. “By identifying potential issues early on, a quality financial audit helps a company avoid fraud or errors in financial reporting, mitigate risk and avoid costly disputes and litigation,” Tjiendra says. “A quality, independently verified, financial audit also improves a company’s financial management by identifying areas where it can better its financial planning and reporting processes, and optimise its financial strategies to maximise the benefit of future investments.”
The Indonesian government requires financial audits to be conducted by companies and organisations operating within the country. In Indonesia, financial audits are mandatory for all large registered companies, including listed companies, state-owned enterprises, and foreign companies with a presence in the country. The requirement for financial audits is regulated by the Indonesian Financial Services Authority (OJK) and Government regulations, which set out the standards for auditing and accounting practices in the country. Ultimately, whether or not to use the services of a quality financial auditor is a decision that should be based on a company’s circumstances and situations.
In Indonesia, financial audits are conducted by independent auditors, who are registered with the Indonesian Financial Services Authority (OJK). The auditing process in Indonesia generally follows the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB).
Financial audits provide an independent review of a company’s financial statements, ensuring that they accurately reflect the financial position and financial results of the company. This lets companies identify errors and ensure that their financial records are reliable. “Overall,” says Tjiendra, “undergoing a quality financial audit is essential for ensuring the accuracy and reliability of financial records, complying with legal requirements, and providing transparency to stakeholders.”
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