The Legal Certainty of Determining State Financial Losses in BUMN

DOI

10.2991/978-2-38476-218-7_36How to use a DOI?

Keywords

Audit; Public Accountant; State Financial Losses

Abstract

Since outside parties may audit BUMN’s segregated state assets on behalf of BPK and public accountants chosen at the general meeting of shareholders (GMS), State Financial Audit Standards (SPKN) are crucial. Apart from being bound by the SOE Law, State-Owned Enterprises (SOEs) are additionally subject to the provisions and guidelines of the Limited Liability Company Law. This law permits SOEs to be audited by a public accounting firm (KAP) by Article 66 paragraph 4 and Article 68, paragraph 3. Regarding the Use of Auditors and Experts from Outside BPK, BPK Regulation 1 of 2008 governs the relationship between BPK and public accountants. Even though the accounting profession has its accounting standards, examinations by public accounting firms must be based on state financial audit requirements, and audits must be carried out on behalf of BPK. A critical function for public accounting is striving for reliable financial audit reports. The performance of financial auditors has a significant impact on the fulfillment of the state financial losses element. The legal entity’s opinion or expression of view regarding the report or financial data is the public accountant’s responsibility. Nonetheless, there are some issues with having a public accountant participate in the BUMN assessment process. Legal matters will surface if there are notable discrepancies between the financial statement or audit results from BPK and public accountants. To demonstrate the element of state losses, corruption law enforcement significantly depends on the integrity and correctness of financial reports generated by auditors. If there is a filthy design about the audit results between the BUMN and the designated public accountant, it is a legal issue that needs to be regulated. Financial audit reports have a lot of accounting engineering, which could be better for state budgets.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Warkhatun Najidah
AU  - I Gusti Ayu Ketut Rachmi Handayani
AU  - Riawan Tjandra
PY  - 2024
DA  - 2024/02/22
TI  - The Legal Certainty of Determining State Financial Losses in BUMN
BT  - Proceedings of the International Conference On Law, Economic & Good Governance (IC-LAW 2023)
PB  - Atlantis Press
SP  - 222
EP  - 226
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-218-7_36
DO  - 10.2991/978-2-38476-218-7_36
ID  - Najidah2024
ER  -