BPK audits 2022 financial reports, focus on high-risk areas

Jakarta – Indonesia’s Supreme Audit Board (BPK) has disclosed that its auditors.would examine the financial statements of nine ministries and government agencies by using a risk-based audit (RBA) approach which focuses on areas, considered to be “high risk enough”.

The auditors.would also focus on the areas having impacts on the presentation of 2022 financial statements (LK) in 2022, including the internal control over the financial reporting, the agency’ s member II, Daniel Lumban Tobing, said.

“The areas that are the focus of BPK’s audit include internal control over financial reporting in recording financial transactions and the process of preparing financial reports,” he said at an entry meeting at the BPK head office as quoted by ANTARA from the agency’s official website here Sunday.

Apart from the internal control, the BPK auditors would also focus their.examinations on repeated findings, development of follow-up on recommendations from previous inspections, situations and/or events that indicate frauds, and assessing the impacts on fairness of the LK presentations, as well as tests on revenues, goods expenditures, capital expenditures, and management of State Property (BMN).

The entry meeting marked the commencement of examination of the 2022 financial statements of

the Ministry of National Development Planning, the Ministry of Trade, Ministry of Cooperatives and Small and Medium Enterprises, Ministry of Investment/Investment Coordinating Board (BKPM), Statistics Indonesia (BPS), Center for Financial Transaction Reports and Analysis, Government Goods/Services Procurement Policy Institute, Supervisory Business Competition Commission, and the National Standardization Agency.

“In assessing the internal control system (SPI), one of the elements evaluated is related to the effectiveness of completing follow-up recommendations on audit results. For this reason, it is hoped that each ministry/institution can take strategic steps to follow up on recommendations from the BPK audit results, especially recommendations on audit results from a long audit period,” said Tobing.

Another thing that is also emphasized by BPK is the fulfillment of audit data and documents.

According to Tobing, documents and data are important for the BPK auditors who regard them as supporting evidence in obtaining adequate confidence in the presentation of LK, whether there are deviations from accounting policies, internal control weaknesses, or non-compliance with statutory provisions.

“We expect support, commitment, synergy, and effective communication, so that the BPK audit results can provide sufficient confidence in the financial accountability of the ministries/agencies in 2022,” he said.

The meeting was attended, among others, by Minister of National Development Planning Suharso Monoarfa, Trade Minister Zulkifli Hasan, Minister of Cooperatives and SMEs Teten Masduki, and Minister of BPKM Bahlil Lahadalia.

Source: Antara News

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