TM 2 SISTEM PERLINDUNGAN HUKUM

Summary

This video discusses the professional protection system for public accountants, especially in light of past financial scandals like Enron and Wcom. It highlights the importance of quality control systems within accounting firms, adherence to strict ethical codes, and the procedures to vet clients, ensuring accountants' independence. Key protections include ensuring compliance with audit standards, managing risks associated with client engagements, and safeguarding the integrity of the profession through strong oversight and documentation. The presentation emphasizes the critical need for maintaining high ethical standards and accountability within the accounting field.

Takeaways

• 😀 The 1990s and early 2000s saw major financial scandals (e.g., Enron, WCOM, and Arthur Andersen), highlighting the need for improvements in accounting and audit practices.
• 😀 As a result of these scandals, professional organizations like the American Institute of Certified Public Accountants and the International Federation of Accountants developed stricter standards for the accounting profession.
• 😀 The first protection for public accountants is the quality control system established by the accounting firm itself, which includes responsibilities for leadership, client acceptance procedures, human resource management, and audit documentation.
• 😀 The quality control system (SPM) is a set of mandatory rules that accountants must follow to ensure consistency and professionalism in their practice, referring to auditing standards or professional codes.
• 😀 The second protection is the code of ethics for accountants, which includes compliance with independence, integrity, and professionalism, and prohibits conflicts of interest, such as serving as both auditor and commissioner for the same company.
• 😀 The code of ethics also provides guidelines on how accountants should act when working in business or serving the public, ensuring independence is maintained throughout.
• 😀 Protection within the code includes specific guidelines for independence in audit and review engagements, especially concerning financial statement audits.
• 😀 The third protection is the Procedure for Recognizing the Service Provider (PMPJ), which ensures that accountants understand the scope of services provided to clients and assess any associated risks.
• 😀 The PMPJ procedure includes steps such as communicating services to clients, analyzing risk (high, medium, or low), and gathering information about the client's business, profile, and domicile.
• 😀 These protections are in place to ensure the integrity, independence, and professionalism of public accountants, safeguarding their practice and responsibilities in the industry.

Q & A

What significant financial scandals occurred in the 1990s and early 2000s that impacted the accounting profession?

The major financial scandals that occurred during this period include the Enron, WorldCom, and Arthur Andersen scandals. These events shook the financial markets and caused substantial losses for investors.

How did these financial scandals impact the accounting profession?

These scandals highlighted the need for improvements in accounting practices, auditing procedures, and quality control. They showed that stronger measures were needed to protect the integrity of the accounting and auditing professions.

What actions did professional organizations like the American Institute of Certified Public Accountants (AICPA) and the International Federation of Accountants take in response to these scandals?

In response to these scandals, organizations like AICPA and the International Federation of Accountants began developing stricter standards to protect accounting practices and the auditing profession itself.

What is the first protection system for public accountants discussed in the script?

The first protection system is the quality control system established by accounting firms themselves. This system governs various aspects such as leadership responsibilities, client acceptance procedures, staffing, engagement execution, monitoring, and documentation of audit processes.

What are the key components of a quality control system (QCS) in accounting firms?

Key components of a QCS include the responsibilities of firm leadership, client acceptance and re-acceptance procedures, engagement assignments, human resource management, the execution of engagements, monitoring processes, and proper documentation of audits.

How are audits and other services like reviews and compilations governed within an accounting firm?

Audits, reviews, and compilations are performed according to specific standards established by professional regulations. These standards ensure that the services meet quality requirements and are performed in accordance with the relevant auditing or professional guidelines.

What is the role of the code of ethics in the protection of public accountants?

The code of ethics sets standards for accountants, emphasizing independence, integrity, and responsibility towards the profession. It includes provisions about working in business positions, practicing as public accountants, and maintaining independence in engagements like audits and reviews.

How does the code of ethics address the independence of accountants?

The code of ethics addresses independence in several ways, such as by prohibiting public accountants from providing audit services to companies where they hold a business position like being a commissioner. It also ensures that accountants maintain independence in various assurance engagements.

What is the third protection system discussed for the public accounting profession?

The third protection system is the Client Identification Procedure (PMPJ), which ensures that accountants properly understand their clients, the services being offered, the risks involved, and maintain clear communication with the client and relevant authorities.

What steps are involved in the Client Identification Procedure (PMPJ)?

The steps in the PMPJ include understanding the scope of the services provided, communicating with the client about the reports that will be submitted, analyzing risks (high, medium, or low), reviewing the client's profile, business, and domicile, and documenting and reporting the actions taken.