New standards issued to streamline public-sector audits

The Jakarta Post

JAKARTA (JP): The Supreme Audit Agency (BPK) launched a new set of public-sector audit standards Thursday that are expected not only to improve the quality of public sector audits, but also remove misunderstandings arising out of audits.

"The new auditing standards must be used as the basis for all audits conducted on institutions and programs funded by the treasury, covering not only the national and provincial budgets, but also state-owned and local government firms," BPK head Anwar Nasution said during the launch of the new standards.

The State Financial Audit Standards (SPKN) supersede the State Audit Standards (SAP), which were drawn up by the New Order administration. The old audit rules failed to take account of the public-sector accounting standards. It also separated audits on routine and development expenditure, which often overlapped.(Ary Hermawan)