Page 170 - SUSTAINABILITY ISSUES & COVID-19

SPM 1 requires KAP to establish policies and procedures for conditions that require rotation of engagement partners.
This provision cannot be applied to KAP X because KAP X only has one partner.

4.1.3 Acceptance and continuance of client relationships and specific engagements
In a small KAP with one partner, the partner has two responsibilities, namely determining client acceptance and ethical
requirements. Determination of acceptance and continuity of client relationships is carried out based on policies and
procedures to ensure that KAP has the competent ability to carry out the engagement, including time and resources.

Table 4.3 Checklist for Acceptance and Continuation of Relationships
with Specific Clients and Engagement

III. Penerimaan dan Keberlanjutan Hubungan dengan Referensi
Kilen dan Perikatan Tertentu
Tujuan: Memberikan keyakinan memadai bahwa KAP X ISQC 1.26.-28.
memperoleh klien atau melanjutkan kemitraan dengan klien
yang memungkinkan KAP untuk mengedepankan mutu dari
perikatan yang dijalankan

Kebijakan dan Prosedur KAP YES NO N/A Keterangan Penerapan SPM KAP X pada KAP X
Menetapkan kebijakan dan prosedur yang v Tidak ada pemisahan Rata-rata klien KAP X merupakan
mengatur penerimaan dan keberlanjutan kebijakan dan prosedur perusahaan start up. Namun, KAP X tidak
hubungan perikatan dengan klien, didesain untuk yang jelas mengenai kriteria mendokumentasikan tindakan identifikasi
memberikan KAP keyakinan memadai bahwa kapabilitas KAP untuk mampu kapabilitas KAP untuk mampu menjalankan
KAP hanya melakukan hubungan kerjasama di menjalankan perikatan dari dan menyelesaikan perikatan tersebut
mana KAP mampu untuk melaksanakan perikatan calon klien
dengan memiliki waktu dan sumber daya yang
memadai, mematuhi ketentuam etika profesi yang
berlaku, telah mempertimbangkan integritas klien
Kebijakan dan prosedur yang dibuat KAP X harus v Tidak ada dokumentasi yang tersedia
mengatur mengenai pengumpulan informasi mengenai analisis, identifikasi benturan
penting saat memperoleh klien baru serta saat kepentingan antara klien baru dan klien yang
menganalisis perikatan baru dari klien yang sudah ada
ada, mengidentifikasi apakah ada kemungkinan
benturan kepentingan pada klien baru atau
klien yang sudah ada, serta dokumentasi atas
bagaimana KAP X menghadapi isu tersebut
Kebijakan dan prosedur yang mengatur v KAP X pernah melakukan penolakan
keberlanjutan perikatan dan hubungan dengan terhadap klien yang disebabkan calon klien
klien dalam kondisi KAP menolak perikatan jika memiliki risiko yang tinggi. Namun hal
informasi tersedia lebih awal tersebut tidak terdokumentasikan.
SPM KAP X states that KAP only accepts new assignments or only continues the engagement if KAP has the capability,
but KAP X does not perform special documentation if there is rejection of potential clients. The results of the interview
with the Audit Manager of KAP X, the process of determining client acceptance is carried out by conducting meetings
or communication with prospective clients to talk about the types of client operations, the performance of the client’s
financial statements in the previous year, the expectations of the prospective clients regarding the service ties that will
be provided by KAP X , then if you have got an overview of the prospective client’s company, KAP X submits a proposal
to the prospective client. KAP X documents the submitted proposals and binding letters to prospective clients.

In addition, KAP X had terminated its relationship with a client who was an iron and steel selling company. In the
middle of the engagement process, work is stopped because the work requested by the client is not in accordance
with the initial agreement and takes longer than it should be. Moreover, KAP X has not received payment from clients
so that the time that could have been used to provide services to other clients is wasted. However, the process of
terminating the engagement with the client is not documented by KAP X.

4.1.4 Human Resources
Adequacy and quality of human resources employed are the key to the success of a company. Companies are advised
to appoint one or several people who are directly responsible for carrying out human resources functions. In a small
KAP, the human resources function has a simpler procedure.

International Conference on Sustainability 169
(5 Sustainability Practitioner Conference)
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