Survey Results and Comments on Professionalism and Integrity

6.2.4 Survey Results and Comments on Professionalism and Integrity

Respondents were asked whether they would agree that BPK auditors perform professionally and act with integrity in auditing. Figure 6.4 (below) shows that most responden ts had positive perceptions of auditors‘ professionalism and integrity. BPK‘s efforts of to provide the Code of Ethical Conductand better remuneration for auditors, induced a positive perception from respondents. Some positive statements on the professionalism and integrity of BPK auditors were recorded during the interview as follows:

 “Now, BPK auditors have a better approach to auditees, are young, have better communication, and are friendly, which enhances their professionalism ” (Interview A3, an auditee from the National Electricity Company).

 “Now, BPK auditors are young, have a good educational background, in particular in accounting and finance, and perform with professionalism ” (Interview A6, an auditee from the Ministry of Home Affair).

 “All auditors that I know perform with professionalism; BPK’s official letter states that audit fees cover all the auditors’ costs except for accommodation” (Interview A4, an auditee from the National Oil Company).

 “Auditors who work for BPK need legal protection and security assurance” (Interview B13, an auditor of AKN I).

These excerpts indicate that BPK auditors have many new and young auditors. They are well qualified, perform professionally, look fresh, and have a better approach and better communication with auditees. A remuneration system that provides better compensation for auditors becomes a motivation for qualified graduates to apply for positions with BPK. In addition, requirements for BPK to develop auditor skills and knowledge through training and further education induced them to perform well and more professionally.

Figure 6.4 Survey Results of ‘BPK Auditors Perform with Professionalism and Integrity’

ntage 33 rce 33

25 24 Pe 27 25

Strongly Agree

Pe rce ptions

Auditors

Auditees

Overall responses

Source: Fieldwork survey 5 th November 2006 to 25 th March 2007.

One excerpt pointed out the importance of legal protection and security assurance for BPK auditors in conducting auditing. This was also stated by an auditor who works in a

KAP 88 (Interview F4) and conducts audits on behalf of BPK. She argued as follows:

Working as an auditor at BPK may not be as comfortable and safe as at KAP. This is because of too many pressures from auditees who lack accountability and there is no protection for auditors who maintain their integrity and professionalism in performing their audits.

This statement indicates that auditors in the public sector need protection when uncovering audit findings and to perform with professionalism and integrity. Another KAP implied that she would feel worried about not maintaining her professionalism and integrity as an auditor if she worked at BPK, because of pressure from auditees and a lack of immunity for the auditors in maintaining their professionalism and integrity. Besides, informal norms and situational values from the public and other parties did not work well as informal protection for auditors and auditees.

However, it would be too optimistic to assume that higher salaries will directly improve auditor professionalism and independence. From surveying whether BPK auditors had no integrity and lack of professionalism, 25 per cent of total respondents gave a

‗neutral‘ response, and a ‗disagree‘ response was 10 per cent and 4 per cent respectively

88 This is based on information from auditors who had moved from BPK to other public accountant‘s offices, 88 This is based on information from auditors who had moved from BPK to other public accountant‘s offices,

 “The lack of professionalism and integrity of BPK auditors showed in their

behaviour ” (Interview C1, a Member of Parliament from Commission I).  “In fact, some auditors had no integrity and were not performing with professionalism ” (Interview A7, an auditee from Ministry of National Education).  “Some auditors have high integrity, some not” (Interview B22, an auditor of AKN IV).  “Small audit budget, reducing the integrity of auditors” (Interview B11, an auditor from AKN III).  “Not only have the quality and professionalism of auditors needed attention but also the integrity and professionalism of the BPK Members ” (Interview B17, an auditor of AKN I).

 “Some of BPK auditors were not professional, not competent, and had inadequate capacity to be a professional auditor ” (Interview B10, BPK middle manager of Research and Development Division).

 “Being professional means high lump-sum payment” (Interview B 25, BPK middle manager of Multiplying Report Sub-Division).  “The professionalism of BPK auditors was insufficient” (Interview A23, an auditee from Water Drinking regional-owned enterprises Sukabumi).  “Not all BPK auditors are performing professionally” (Interview B15, an auditorof AKN III).  “The quality of professional qualifications of BPK auditors is still far from those of Financial Development Supervisory Board (BPKP)’s auditors” (Interview B8, BPK

middle manager from Human Resource Bureau).  “Not all auditors of BPK are qualified and competent” (Interview B6, an auditor

from Organisation Bureau).  “Some auditors were not competent and had inadequate capacity to be a professional ” (Interview B26, a BPK middle manager from Legal Affairs Bureau).  “Now, new auditors of BPK are good in theory and knowledge, however, they still lack of experience in auditing ” (Interview A2, an auditee from West Java Province Government).

These excerpts indicate that the respondents and informants thought that the attitude of BPK auditors revealed a lack of integrity and professionalism. These statements also strongly indicate that BPK auditors do not have enough proficiency and experience for public sector auditing. Low salaries for BPK auditors eroded their integrity. These comments also implied that BPK auditors had inadequate individual professional skills and knowledge bases.

For new BPK auditors, although they have obtained a good level of education, they are inexperienced in auditing the public sector. An auditee from the Ministry of Public Works (Interview A19) argued as follows:

Although new auditors were good in terms of civil engineering theories and had enough confidence, they had no experience in auditing public works projects. They were more amazed at our explanations instead of asking questions to examine the projects.

Whilst making this comment, this auditee was laughing and seemed to underestimate and look down at the ability of BPK auditors to find inefficiencies and a lack of accountability in public works projects. This means that BPK auditors, who are clever or good in terms of theory and knowledge concepts, still could not perform well in auditing because they had no ability to deal with auditees who knew their lack of experience.

Moreover, an auditee from local government (16/09/2009) criticised the competence of auditors in understanding the problems facing local government agencies, as follows:

BPK only described all the mistakes and problems, but they did not explain why these problems could happen, how we could solve the problems, what the effects of these problems are in the short, medium and long terms to give us a description of problem solving priorities.

Although BPK auditors found fraud or inefficiency, their ability to explainthe causes and effects of the findings was criticised by auditees. Moreover, auditees found a lack of professionalism from auditors in providing the best solutions and recommendations to solve the problems, both in the short and long terms.