Preparing for a statutory audit: a readiness checklist for Indonesian companies
What finance teams should have in place before fieldwork begins — so the audit runs faster, cleaner and with fewer surprises.
This article is general information, not professional advice. Confirm current regulations and any figures with an engagement partner before relying on it.
A statutory audit is smoother — and less expensive — when the company is ready before the auditors arrive. Most delays and findings trace back to a handful of avoidable gaps. Here is what a well-prepared finance function has in place before fieldwork starts.
1. Close the books, then reconcile
Fieldwork should begin against a genuinely closed trial balance, not one that is still moving. Before handing anything over:
- Reconcile every bank account to the ledger and resolve reconciling items.
- Agree sub-ledgers (receivables, payables, fixed assets, inventory) to the general ledger.
- Clear suspense and inter-company accounts, or be ready to explain the balances that remain.
2. Assemble the supporting evidence early
Auditors test assertions with evidence. Gather it in one place before the request list arrives:
- Signed contracts for major revenue and expense arrangements.
- Bank confirmations, loan agreements and covenants.
- Fixed-asset registers with additions and disposals for the year.
- Inventory count sheets and the results of any physical count.
3. Document your judgments
The areas that consume the most audit time are estimates and judgments — expected credit losses, impairment, provisions, revenue recognition timing. Write down your reasoning and the data behind each estimate. A short memo per judgment area saves days of back-and-forth.
4. Confirm the reporting framework
Indonesian entities generally report under SAK (the local financial accounting standards) or, for certain entities, other applicable frameworks. Confirm which framework and which reporting period applies to your entity this year, and whether any new or amended standards take effect for the period under audit [verify: current standards effective for the period].
5. Line up the right people
Name a single coordinator on your side, and make sure the people who can answer questions about estimates, contracts and systems are available during fieldwork rather than on leave.
The payoff
Companies that treat readiness as a project — not a scramble in the final week — consistently see shorter fieldwork, fewer adjustments and a cleaner path to sign-off. If you would like a tailored readiness checklist for your entity, our audit team can help.