This post is also available in: Indonesia (Indonesian)

Audited Financial Statement

Audited financial statements play a pivotal role in Indonesia, thoroughly examined by Certified Public Accountants (CPAs) to maintain their alignment with universal accounting principles and auditing standards. This examination provides assurance to external stakeholders such as investors and lenders, and is compulsory for public companies. Furthermore, audited financial statements significantly reduce the probability of inaccuracies, thereby enhancing their reliability.

Ordinarily, these statements include the balance sheet, cash flow statement, income statement, and shareholder equity statement. Each of these documents presents distinctive insights into an entity’s financial status, from profit and loss calculations to a financial snapshot of the company at a precise moment.

The auditing process in Indonesia involves CPA validation, on-location assessments for components like inventory reports, and scrutiny of internal controls to avoid misrepresentation or fraud in the books, thereby ensuring highly detailed financial analysis. Though unaudited statements are allowed for internal financial review in Indonesia, the audited ones are favoured for a more precise, trustworthy, and fraud-resistant evaluation.