Page 169 - SUSTAINABILITY ISSUES & COVID-19

From the results of the documentation obtained, the vision and mission of KAP X has reflected the existence of a
strategy or action that supports the achievement of quality by providing good service to clients and added value
to the client company. Based on the results of documentation and examination findings by IAPI, KAP X does not
have clear policies and procedures governing audit quality control. In fact, the manual for SPM KAP X still contains
several statements that are inconsistent with the nature and condition of the company. In addition, the existing
organizational structure does not describe the responsibilities of each KAP personnel. This certainly shows that the
assignment of work does not have a clear basis so it is difficult for KAP X to achieve company goals.

KAP X has a reward program aimed at employees who are able to bring or give new clients to KAP X. KAP X’s
colleagues support the program by always motivating and teaching employees how to get new clients. The reward
program is valid only for the achievement of the client, there is no reward program given to employees who excel in
the fields of quality, ethics, and discipline.
KAP X’s colleague appoints a senior staff to assist KAP X colleagues in developing, documenting, and supporting KAP
X’s SPM policies and procedures. There are no written policies and procedures regarding the assignment criteria.

4.1.2 Relevant Ethical Requirements
Public accountants have a responsibility for the public interest, this is the difference between the public accounting
profession and other professions. The basic principles of ethics for professional accountants are integrity, objectivity,
competence as well as due care and professional care, confidentiality and professional behavior. Ethics involves knowing
when to say “no” and when to cut off work with clients, staff, or even partners. By applying professional ethics, KAP can
create trust for report users, protect KAP from various ethical issues such as misstatement or misleading reports, fraud,
breaches of confidentiality, and others.

Table 4.2 Checklist of Relevant Ethical Requirements
II. Ketentuan etika profesi yang berlaku Referensi
Tujuan: Memberikan keyakinan memadai bahwa KAP X telah ISQC 1.20.-25.
mematuhi ketentuan etika profesi yang berlaku

Kebijakan dan Prosedur KAP YES NO N/A Keterangan Penerapan SPM KAP X pada KAP X
Membuat kebijakan dan prosedur untuk Tidak ada pemisahan kebijakan Formulir independensi dianggap cukup
memberikan jaminan yang wajar bahwa dan prosedur yang jelas untuk untuk memenuhi keyakinan memadai bahwa
perusahaan dan personel telah mematuhi prinsip- mencapai keyakinan memadai perusahaan dan personel telah mematuhi
prinsip dasar etika profesional yang mencakup v bahwa perusahaan dan prinsip dasar etika profesional
integritas, obyektivitas, kerahasiaan, due care dan personelnyamematuhi prinsip
prinsip kehati-hatian, perilaku profesional dan dasar etika profesional
independensi
Membuat kebijakan dan prosedur untuk Tidak ada pemisahan kebijakan Tidak ada dokumentasi mengenai ancaman
mengidentifikasi dan memberitahukan jika dan prosedur yang jelas yang terhadap independensi dan tindakan yang
terdapat ancaman terhadap independensi serta v mengatur ancaman terhadap diperlukan dalam menghadapi situasi
tindakan yang tepat untuk menghadapi situasi independensi tersebut
tersebut
Kebijakan rotasi rekan
perikatan tidak dapat
Membuat kebijakan dan prosedur untuk konsisi
yang memerlukan adanya rotasi rekan perikatan v v diterapkan karena kAP X hanya
memiliki seorang REkan KAP/
PImpinan
KAP X’s Quality Control System states that all staff must comply with all ethical requirements, at least as stated in
the IAPI Code of Ethics and applicable legal provisions. Partners must also be committed to upholding the values of
ethical and responsible leadership. To ensure all personnel comply with basic ethical principles, SPM KAP X requires
periodic reviews of staff compliance with the code of ethics. However, researchers did not obtain documentation for
the implementation of the review.

Each staff member is obliged to report to colleagues if the staff identifies a threat to independence. The associate of
KAP X must refuse to accept or continue the engagement if threats to independence cannot be removed or reduced to
an acceptable level. However, this policy is not equipped with clear procedures from the threat reporting stage to the
stage of rejecting or terminating an engagement related to independence.

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