Who is Required to Use Public Accountant Services? Here's the List!

In the complex world of business, the role of a public accountant is crucial. They help ensure that financial statements are accurate, transparent, and comply with applicable standards. But who exactly is required to use the services of a public accountant? Let's discuss this further.

What is a Public Accountant?

Before discussing who is required to use their services, it is important to understand what a public accountant is. A public accountant is a professional who is officially licensed to provide financial statement audit services, attestation, and other consulting services related to accounting and finance. Budiandru Public Accounting Firm is one example of a trusted KAP.

Who is Required to Use the Services of a Public Accountant?

Here is a list of parties who are generally required to use the services of a public accountant:

1. Public Companies

Companies whose shares are traded on the stock exchange (public companies) are required to be audited by a public accountant. This is regulated by the Capital Market Law and other related regulations. This audit aims to provide investors with confidence that the company's financial statements are reasonable and reliable.

2. Financial Institutions

Banks, insurance companies, financing companies, and other financial institutions are required to be audited by a public accountant. This audit is part of the supervision carried out by related authorities such as the Financial Services Authority (OJK) to maintain the stability of the financial system.

3. Companies with Certain Assets or Turnover

Based on laws and regulations, companies with certain assets or turnover are required to have their financial statements audited by a public accountant. The asset and turnover limits may vary depending on the applicable regulations.

4. Entities Receiving Public Funds

Organizations or entities that receive funds from the government or the public in significant amounts, such as foundations or non-governmental organizations (NGOs), are often required to be audited by a public accountant. This aims to ensure that these funds are used in an accountable and transparent manner.

5. Subsidiaries of Public Companies

Subsidiaries of public companies are usually also required to be audited by a public accountant, especially if the subsidiary has a significant contribution to the financial performance of the parent company.

6. Companies Applying for Loans to Banks

Banks often require an audit of financial statements by a public accountant as part of the loan approval process. This helps banks to assess credit risk and ensure that the company has the ability to repay the loan.

Benefits of Using Public Accountant Services

In addition to legal obligations, using the services of a public accountant also provides many benefits for the company, including:

• Investor Confidence: Financial statements audited by a public accountant increase investor confidence in the company.
• Regulatory Compliance: Ensuring that the company complies with laws and regulations related to financial reporting.
• Increased Efficiency: Public accountants can provide recommendations to improve operational efficiency and internal controls of the company.
• Fraud Detection: Audits by public accountants can help detect and prevent potential fraud within the company.

Budiandru Public Accounting Firm: A Trusted Audit Solution

If you are looking for a trusted and professional public accountant, Budiandru Public Accounting Firm is the right choice. With years of experience and a competent team of experts, Budiandru is ready to help you meet your audit and financial consulting needs.

Conclusion

Using the services of a public accountant is important for companies, both because of legal obligations and the benefits that can be obtained. Make sure you choose a public accountant that has a good reputation and experience that is relevant to your industry. Don't hesitate to contact Budiandru Public Accounting Firm to get the best audit and financial consulting solutions.