Financial Audit

Audit Services for PT PMA Indonesia

Complete guide to financial audit requirements for foreign-owned companies in Indonesia. Learn about statutory audit obligations, preparation steps, and how to choose the right auditor for your PT PMA.

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Audit Requirements

Asset Threshold
> IDR 50 Billion
Public Interest Entities
Banks, Insurers, Listed Co.
Completion Deadline
6 Months After Year End
Standards
SAK (Indonesian GAAP)

When is Audit Required?

Companies meeting any of these criteria must have audited financial statements

Public Interest Entity

Listed companies, banks, insurance, pension funds

Mandatory Annual Audit

Total Assets > IDR 50 Billion

Companies with significant assets

Mandatory Annual Audit

Debt Securities Issuer

Companies issuing bonds or debt instruments

Mandatory Annual Audit

PT PMA (Foreign-Owned)

All foreign investment companies

Recommended for LKPM

Types of Audit

Different audit types serve different purposes

Statutory Audit

Annual audit required by Indonesian Company Law for certain companies

Deliverables:
  • Audit opinion
  • Audited financial statements
  • Management letter
Within 6 months after year end

Tax Audit

Audit initiated by tax authorities to verify tax compliance

Deliverables:
  • Tax audit findings
  • Assessment notice
  • Payment requirements
Upon DGT notification

Special Purpose Audit

Audit for specific purposes like M&A due diligence or loan requirements

Deliverables:
  • Special purpose report
  • Specific procedures findings
As required by stakeholders

Internal Audit

Assessment of internal controls and operational efficiency

Deliverables:
  • Internal audit report
  • Control recommendations
Ongoing or periodic

Preparing for Your Audit

Steps to ensure a smooth and efficient audit process

1

Organize Financial Records

  • General ledger
  • Bank statements
  • Invoices and receipts
  • Contracts and agreements
2

Prepare Trial Balance

  • Account reconciliations
  • Adjusting entries
  • Month-end close procedures
3

Gather Supporting Documents

  • Fixed asset register
  • Inventory records
  • Accounts receivable aging
  • Accounts payable listing
4

Compile Required Schedules

  • Related party transactions
  • Tax computations
  • Loan agreements
  • Shareholder information

Typical Audit Timeline

What to expect during the audit process

PhaseDurationActivities
Planning2-4 weeksEngagement letter, risk assessment, audit plan development
Interim Audit1-2 weeksInternal controls testing, preliminary substantive procedures
Year-End Audit2-4 weeksSubstantive testing, balance confirmation, final procedures
Completion1-2 weeksAudit opinion, management letter, financial statement issuance

Choosing the Right Auditor

Key factors to consider when selecting an audit firm

Registration with OJK

Ensure the audit firm is registered with Indonesia's Financial Services Authority

Mandatory for statutory audits

Industry Experience

Look for auditors with experience in your specific industry sector

Better understanding of risks

PT PMA Experience

Choose auditors familiar with foreign investment company requirements

Smoother audit process

Fee Structure

Understand the fee basis - fixed fee vs. hourly rates and any additional charges

Budget planning

Communication

Assess their English capability if needed and communication responsiveness

Efficient collaboration

OJK Registration Required

Only public accounting firms (KAP) registered with Indonesia's Financial Services Authority (OJK) can issue statutory audit opinions. International audit networks operate through their local Indonesian member firms. Verify registration before engagement.

Our Audit Support Services

How we help PT PMA companies prepare for and navigate the audit process

Audit Preparation Support

We help prepare your books and records to ensure a smooth audit process

Auditor Liaison

We coordinate with your auditors and provide requested documentation

Financial Statement Preparation

We prepare SAK-compliant financial statements ready for audit

Post-Audit Support

We help implement recommendations from the audit management letter

Frequently Asked Questions

Common questions about financial audit in Indonesia

Does my PT PMA need an annual audit?

While not all PT PMAs are legally required to have an annual audit, it is strongly recommended. Companies with total assets exceeding IDR 50 billion, public interest entities (banks, insurers, securities issuers), and SOEs are required to have audited financial statements. Additionally, banks and investors often require audited statements for loan applications or investment decisions.

When should the annual audit be completed?

Audited financial statements must be completed within 6 months after the fiscal year end. For companies with a calendar year fiscal period (January-December), this means the audit should be completed by June 30th of the following year.

How much does a PT PMA audit cost?

Audit fees in Indonesia vary significantly based on company size, complexity, and the audit firm chosen. Small to medium PT PMA companies typically pay between IDR 50-150 million for a statutory audit. Larger companies or those with complex operations may pay more.

What accounting standards apply in Indonesia?

Indonesian Financial Accounting Standards (SAK - Standar Akuntansi Keuangan) apply to most companies. SAK is largely converged with International Financial Reporting Standards (IFRS). Small and medium entities may use SAK EMKM (simplified standards).

Can foreign audit firms audit my PT PMA?

Only Indonesian-registered public accounting firms (KAP - Kantor Akuntan Publik) can issue statutory audit opinions in Indonesia. International audit networks typically operate through local member firms. Ensure your chosen firm is registered with OJK.

What documents do auditors typically request?

Auditors typically request: general ledger, trial balance, bank statements and reconciliations, fixed asset register, inventory records, accounts receivable/payable aging, contracts, tax filings, corporate documents, and related party transaction details.

Need Help Preparing for Your Audit?

Our experienced team can help prepare your financial records, liaise with your auditors, and ensure a smooth audit process for your PT PMA.

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