1.8 External stakeholder relations
The review team assessed the quality controls in place and
bpk
’s ability to gather information from its main stakeholders with regard to risk assessment, audit object,
topic selection and evaluation of the effects of assurance products.
bpk
’s stakeholders are not named in laws and regulations. But, by studying and analysing the laws bpk and audit Laws,
bpk
has identified its stakeholders as: a parliaments dpr central and dprd local;
b regional representative councils dpd; c governments central and local governments;
d Attorney General’s Office, Police Department, and Anti-Corruption Commission; e management of state-owned enterprises and other audited entities;
f international organisations or institutions such as intosai, asosai, World Bank, Asian Development Bank, and other sais;
g the public, including the media. The question is whether
bpk
’s communication strategy achieves its goals.
bpk
has developed a communication strategy but has not yet formally adopted it.
bpk
has approached its many stakeholders mainly through presentations of its reports and
summaries. It also organises consultative fora with parliaments, coordination and follow-up meetings and press conferences. In 2009 a weekly tv magazine was
broadcast for two months to make the results of specific audits accessible to the public. Given the huge challenge facing the Republic of Indonesia to improve its
widely decentralised administration and financial management,
bpk
should prioritise its stakeholder relations and issues, preferably selecting high-risk issues in its own
country and the Southeast Asia region. In addition, we believe
bpk
’s effectiveness can be enhanced through the appointment of a Public Accounts Committee in parliament to act as a focal point for
bpk
and its audit results. A Public Accounts Committee could also support
bpk
’s efforts to enhance financial management in the Republic of Indonesia.
1.9 Results impact assessment
The Peer Review team reviewed a selection of 14 audits conducted by
bpk
in 2007-2008 to assess the performance of quality controls. The results are presented in the next
chapter. The selection covered
bpk
’s three audit types: eight financial audits, three performance audits and three special purpose audits.
Presentations given by the audit teams on their approach, supported by documents, gave us a general impression of the effectiveness of
bpk
’s quality control system. The results also enabled us to focus our review on institutional issues by interviewing
specific units within
bpk
.
2 Individual audit at engagement level
2.1 Introduction
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