Procedures for the Use of Public Accountants and Public Accounting Firms in Financial Services Activities

The Financial Services Authority (OJK) issued Circular Letter No. 18/SEOJK.03/2023 to establish detailed implementation procedures for using Public Accountants and Public Accounting Firms in financial services, following POJK No. 9 of 2023. The regulation defines the audit scope for entities such as banks, investment managers, and insurance companies, while mandating professional education, independence conditions, and specific reporting formats for violations and administrative management. This circular officially revokes the previous OJK Circular Letter No. 36/SEOJK.03/2017 regarding the same subject matter.

Indonesia

Otoritas Jasa Keuangan (Financial Services Authority)

Circular Letter of the Financial Services Authority Number 18/SEOJK.03/2023 Regarding Procedures for the Use of Public Accountants and Public Accounting Firms in Financial Services Activities

ABSTRACT:

As a follow-up to the issuance of Financial Services Authority Regulation (POJK) Number 9 of 2023 regarding the Use of Public Accountants and Public Accounting Firms in Financial Services Activities, it is necessary to refine the implementation provisions concerning the procedures for the use of public accountants and public accounting firms in financial services activities in this Financial Services Authority Circular Letter.

The legal basis for this Financial Services Authority Circular Letter is Law Number 5 of 2011 regarding Public Accountants, Law Number 21 of 2011 regarding the Financial Services Authority as amended by Law Number 4 of 2023 regarding the Development and Strengthening of the Financial Sector, and POJK Number 9 of 2023 regarding the Use of Public Accountants and Public Accounting Firms in Financial Services Activities.

This Financial Services Authority Circular Letter regulates further explanations, including but not limited to, the scope of audit for Parties consisting of banks, investment managers, insurance companies, and reinsurance companies, pension funds, and financing institutions; professional education and continuing professional education programs for Public Accountants (AP); the independence conditions of APs and Public Accounting Firms (KAPs) that must be fulfilled in providing services; information on violations, weaknesses, and estimated conditions to be reported by APs and/or KAPs to the Financial Services Authority; formats, guidelines for filling out, and procedures for submitting reports from Parties as well as APs and KAPs to the OJK; and guidelines for the administration management of APs and KAPs.

NOTES:

The use of APs and KAPs registered and recorded in the list of active APs and KAPs at the Financial Services Authority relates to reports that must be audited, examined, or assigned by APs based on provisions of legislation in the field of financial services or written instructions from the Financial Services Authority, as stated in Appendix I which is an integral part of this Financial Services Authority Circular Letter.
The formats and guidelines for filling out reports submitted by APs, KAPs, and Parties as stated in Appendix II which is an integral part of this Financial Services Authority Circular Letter.

This Financial Services Authority Circular Letter takes effect on the date of determination.

The Financial Services Authority Circular Letter Number 36/SEOJK.03/2017 regarding Procedures for the Use of Public Accountants and Public Accounting Firms in Financial Services Activities is revoked and declared invalid.