Escolar Documentos
Profissional Documentos
Cultura Documentos
Stefani Dian
Chapter I Background
Public Accountant is a profession that produces assurance and non-assurance services. Assurance services are the main services used by the public as an important consideration in economic decision making. Assurance services are services to give conviction to the user for the evaluation or measurement of financial and nonfinancial information based on some criteria established. In other words, assurance services are professional services provided by an independent party, in this case, public accountants to improve the quality of information for decision makers. Non-assurance services are services provided by a public accountant in which he gives no opinion, negative convictions, and a summary of findings or convictions in another form. Assurance services are included in the audit services, examination services, review services, and agreed upon procedure. Meanwhile non-assurance services included consulting services, compilation and tax services. Thus, public accountants have an important role in improving the quality and credibility of financial statements of an entity. In Indonesia, there is no law specifically regulates the profession of Certified Public Accountants as a whole before the Law no. 5 in 2011 is authorized. Law no. 34 in 1954 about the use of accountant degree, which consists of seven chapters, have not describe the whole profession of Certified Public Accountants, and is not in accordance with the development of the profession of Certified Public Accountants nowadays. Law No.34 of 54 has not set up the basics of Certified Public Accountants profession as in Law no. 5 in 2011. House of Representatives has passed a Law on Public Accounting which is very controversial that might consider will ruin the accounting profession in Indonesia. From all of the articles in the Law no. 5 in 2011, there is one article that is surprising, an explanation of the Article 6(a) that stated: "who can get the education profession of public accountant is a person who has at least an undergraduate education (S-1), diploma IV (D -IV), or equivalent ". It is meant to be a public accountant could be not coming or graduating from accounting degree.
Respond to a variety of accounting community many have regretted this law. People from accounting background are disappointed because now the public accounting profession can graduate from anywhere, not even an undergraduate level. Accountant compares accounting profession to lawyers that have to pass a law degree; doctor must be graduated from faculty of medicine; and even professional psychologists who have a graduate degree in psychology. Government tried to open the widest door of opportunity to be a public accountant in accordance with the concern towards quantity and quality in global public accountant in Indonesia. In terms of quantity, public accountant in Indonesia is clearly left far behind the neighboring countries. Indonesia only has 920 certified public accountants and even more pathetic only about 800 people who practice, then is not practice anymore because of leave or they were getting penalized. Compare that with the Philippines and Malaysia which both have public accountant more than 4000 people. More worryingly, 64% of practicing certified public accountants in Indonesia is over 50 years of age and only 10% are aged of 30-40 years. In terms of quality of service provided, the 800-CPAs in Indonesia that spread over to 400 public accounting firms (KAP) nationwide, approximately half of them only have one partner. Meanwhile, the quality of audit services that meet international quality standards require an adequate procedures of conducting working paper, competent professional workforce, as well as "peer review". Therefore, the audit quality in Indonesia is considered poor, because from half of the public accounting firms in Indonesia are individual businesses with low capital. Many people then blame the difficult requirement as a public accountant for the low number of certified public accountants in Indonesia. To become a certified public accountant, an accounting graduate, must complete the profession education. After completing the profession education, they must pass professional certification exams to the title of CPA (Certified Public Accountant). If you want to add a license for practice, the CPA must be coupled with experience working as an auditor as much as 1000 hours in the last five years. Truthfully, opening up opportunities for those without an undergraduate accounting education into for public accountant profession is in accordance with the international practice. Surely there are higher requirements for those without formal education compared with accounting
graduates. However the bottom line of accounting profession is giving the opportunities as many as possible to anyone interested in public accounting so that the current supply of accountant to the profession is not impeded. Indonesia requires more certified public accountant to support the rapid development in every industry, in which it requires accountant to give high quality of audit.
Chapter II Issue
Several laws and minister decree actually have regulations that a company with a number of specific assets to be audited by public accountants, but in fact is very surprising that the number of audit engagement in Indonesia under 18.000 only. Based on BPS 2006 economic census the number of medium and large enterprises in Indonesia amounted to 166.400. Compared to 2011 there are more than 200.000 medium and large enterprises. The fact that only 18.000 audit engagement in Indonesia indicates that the demand for audit services in Indonesia is still very minimal, especially for other accounting services such as review. Audit services still dominate the services rendered by public accounting firm by 70%, so it is could be predicted that the World Bank, government institution, and chartered accountant institution suggests public accounting firm in Indonesia to give more services related to accounting other than audit services focused only. The lack of demand and also together with high pressure of the low fee of audit services from companies in Indonesia causing the profession of Certified Public Accountant being unfavorable among other job in accounting field. The low fee for audit services is much complained of by the public accountant that practice outside Jakarta and Surabaya. Companies generally offer the lowest fee possible for audit services, but often generous to pay tax consulting services at high prices. Most company prefer to have tax consultation in order to avoid tax rather than audit their financial report, especially for private company which has no requirement to disclose their financial report to public. Public Accounting Firm who clung to the quality of audit work is generally reject if the audit fee offered was too low, but there was always a desperate public accounting firm or fake public accounting firm willing to accept the job. A phenomenon of fake public accounting firm in Indonesia is not a surprising news since there are only small number of certified public accountant and yet so many of company gets audited. Fake public accounting firm is also degrading the accounting profession in Indonesia. Public accountant keeps complaining of hardship to make their client willing to pay a decent amount of audit fee for the services so they can provide quality, while the company also complained that the audit services provided by public accountant is not significantly adding value to the improvement of the company so that eventually they bid low. Company requires
more services as a package such as review and other assurance services; however the public accounting firm is reluctant to do so since the fee is too low.
not feel underpay. The fee for public accounting firm other than big 4, especially outside Jakarta and Surabaya is considered to be very low, compared to the effort and workforce that accountant should give up during audit work conducted. The low fee also became the important factor of accountant being reluctant to be Certified Public Accountant, the cost is surpass the benefit.
References
Obrolan Auditor. (2011, November 15). Retrieved June 12, 2012, from Jumlah Akuntan RI Kalah Jauh dari Malaysia: http://obrolan-auditor.blogspot.com UNDANG-UNDANG REPUBLIK INDONESIA NOMOR 5 TAHUN 2011 TENTANG AKUNTAN PUBLIK . (2011, May 03). Ikatan Mahasiwa Universitas Hasanuddin. (2011, May 18). Retrieved June 12, 2012, from UU Akuntan Publik (UU No.5 Tahun 2011): http://www.ima-unhas.com Permadi, G. (2011, June 20). Kompasiana. Retrieved June 02, 2012, from Masa Depan Profesi Akuntan Publik: http://ekonomi.kompasiana.com Triwahyuni, E. (2012, March 24). Discussion on Indonesia-IFRS Convergence. Retrieved June 12, 2012, from Siapa Peduli Nasib Profesi Akuntan Publik?: http://ersatriwahyuni.blogspot.com