Because there is a need from intended user of the financial statements other than the responsible party about the credibility of the financial information, and consistency presentation according to the accounting standards.
Based on external factors, it is required by law in Indonesia for the Companies which meets the criterias under Limited Liability Company Regulation no. 40/2007 art. 68 which has assets and/or turnover amounts at least Rp 50 billion. Most of the banks also require an audited financial statements for credit request which exceeds certain limit.
The Company is also able to request for their own purpose as part of governance and accountability if the shareholder is not directly involved in managing the entity, because the risks of fraud and error which could affect during the reporting process. The size and complexity of the Company also made the shareholders may unable to oversee the reporting process into detail and effectively.
Continually there is a risk, however well established control environment, IT system (automation) in placed, all the relevant controls performed effectively, the owner of the Company is directly involved in managing the entity and reporting process, would help to minimise the financial statements prepared goes wrong. On top of it, the financial statement is used solely for internal purpose. Based on all of those considerations external audit may not be required.
For small medium business, it could take 4 to 6 weeks depends on the complexity, existence of internal control, risk assessments, and also subject to the availability of the data.
For larger business, it can be longer, however the appropriate planning could help to anticipate the deadline’s requirement.
Basically the service is more focus on client’s need. We aim to help the business grows and accommodate owner’s concern about the internal control and improve the quality on financial reporting process. We also assist to evaluate the Company’s current performance and advise for improvements.
If the Company already had a strong internal team and experienced for doing corporate actions (merger, acquisitions, IPO, divestment, spin-off), the Company may not require a financial advisor. However if the Company does not have the team or facing more complex transactions, we advise you to engage the right advisor considering the amount of transaction and the risk of potential losses are significant.
Voza Office 20th floor
Jl. HR. Muhammad 31A Surabaya 60189 Indonesia
|Phone||+62 31 99210213|