What OJK-regulated entities should expect from their auditor
Auditing a bank, capital-market participant or non-bank financial institution carries obligations that go beyond a standard corporate audit. Here is what changes.
This article is general information, not professional advice. Regulatory requirements for financial-services entities are detailed and change over time — confirm the current rules with an engagement partner.
Financial-services entities in Indonesia — banks, capital-market participants and non-bank financial institutions — operate under the supervision of the Financial Services Authority (OJK). Auditing them is not simply a larger version of a corporate audit. The regulatory context changes who can audit you, what they look at, and how the results are used.
Your auditor must be OJK-registered
Only public accounting firms and accountants registered with OJK may audit entities in the financial-services sector. This is a threshold question: before an engagement begins, confirm that the firm holds the appropriate OJK registration for your entity type. KAP Andi Ruswandi Wisnu & Rekan is OJK-registered for this purpose.
Expect a stronger focus on regulatory capital and risk
Beyond the financial statements themselves, audits of regulated entities pay close attention to:
- Capital adequacy and prudential ratios relevant to your entity type.
- Classification and provisioning for financial assets and credit exposures.
- Governance and internal control over financial reporting, often to a higher standard than an unregulated company faces.
Reporting can reach beyond the company
For a regulated entity, audit results may feed into filings and communications with the regulator, not just shareholders. That raises the stakes on timeliness and on the consistency between what is reported to OJK and what appears in the audited financial statements.
Prudential and accounting figures may differ — reconcile them
Regulatory reporting and financial-statement accounting can measure the same items on different bases [verify: current prudential vs. accounting treatment for your entity]. Understanding and reconciling those differences is part of a well-run engagement, and something your auditor should walk you through rather than leave you to discover at year-end.
Plan for a longer runway
Because the scope is broader and the review deeper, regulated-entity audits benefit from earlier planning — agreeing scope, timelines and information requests well before year-end.
In short
If your entity is supervised by OJK, treat auditor selection as a compliance decision as much as a commercial one. Start with registration, then look for a team that understands the prudential context your business operates in. Talk to our financial-services team to discuss your engagement.