The Company uses the service of a Public Accounting Firm (“KAP”) from independent external party in order to obtain credibility for an accountable account. In ensuring the integrity of the presentation of financial statements to shareholders, the Company uses external auditor services. The appointment of external auditor to audit the Company’s Financial Statements for the Fiscal Year of 2016 is determined through the Annual GMS based on recommendations from the Board of Commissioners and the Audit Committee. The appointed external auditor is not permitted to have a Conflict of Interest with the Company to ensure the independence and quality of the audit results. External auditor is responsible for conveying opinion on the compliance of the Company’s Financial Statements, which are audited against generally accepted Financial Accounting Standards.
EXTERNAL AUDITOR APPOINTMENT MECHANISM
The appointment of Public Accountant is carried out by the Company using the following mechanism:
- Public Accounting Firm Evaluation by the Audit Committee
- Public Accounting Firm Appointment for Fiscal Year 2016 is reported by the Audit Committee to the Board of Commissioners
- Board of Commissioners approves the appointment of Public Accounting Firm to conduct general audit of the Consolidated Financial Statements for Fiscal Year 2016
- The Board of Commissioners proposes to the 2016 GMS to approve the appointment of Public Accounting Firm
ACCOUNTANTS AND AUDIT PERIOD
The consolidated financial statements dated December 31, 2018 and for the year ended on that date was audited by Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited). The table below shows the Accountant and Public Accounting Firm that conducted the financial audit for the Company for the past six years as well as the audit fee:
OTHERS SERVICES PROVIDED
In addition to auditing the 2018 financial statements, KAP Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) also provided services related to the Company’s Precautionary Practices Application Report.