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Jakarta Post

Commentary: Spate of accounting fraud may cost public faith in stock market

  • Vincent Lingga

    Senior editor at The Jakarta Post

  /   Tue, January 21 2020   /  12:17 am

Regulatory agencies slapped only light sanctions and small fines on public accounting firm (KAP) Tanubrata, Sutanto and its foreign partner BDO International in June 2019 for violating standard accounting principles concerning publicly listed airline Garuda Indonesia. The accounting misconduct forced a massive material correction of Garuda’s 2018 bottom line, from a net profit of US$870,000 as booked in the previously “cooked report” to a loss of $175 million. Likewise, KAP Satrio, Bing Eny and its foreign partner Deloitte also got only light penalties for their violations of standard accounting principles with regard to their audit of multi-finance corporation PT Sunprima Nusantara Pembiayaan (SNP), which misled investors and lenders into total losses of Rp 1.8 trillion ($124 million) in bank loans and medium-term notes in mid-2018.The sanctions and fines imposed on several other ...