Public Accountant: Definition, Duties, Types, and Salary of the Public Accountant Profession

Definition of a Public Accountant – Hello sinaumedia friends , Interested in the public accounting profession? First, find out the definition, roles, duties and types of public accountants that you can read on the sinaumedia Blog .

Public accountants are required to audit and review the company’s financial statements. Financial information provided by public accountants can affect the good image or reputation of the company.

The company’s reputation is at stake if the accountant does not provide good financial reports. For example, at the beginning of 2020, the accounting firms owned by several large companies were sanctioned by the Indonesian Ministry of Finance.

Why is that? In fact, the company’s financial reports are related to the issue of the mode of play in shares and have a negative impact on the national economy.

That is why public sector accounting is so important nowadays when many new businesses are being formed.

Accountants are those responsible for compiling, instructing, supervising, checking and improving the accounting and governance of businesses or government agencies.

The public accountant’s job is to review financial statements. Financial reporting information provided by a good accountant can affect the company’s image.

The company’s image will deteriorate if the public accountant does not provide good financial reports. In addition to auditing financial statements, public accountants have many duties, for example, calculating and paying income taxes, complying with applicable tax regulations, reviewing financial records and advising on general accounting.

Definition of Public Accountant

Public accounting   is a profession that provides professional accounting services to individuals or businesses independently. In general, the concept of an accountant is an accountant who is responsible for guiding, supervising and improving the accounting and operations of a company, private company or government agency.

Public accountants are independent accountants who provide accounting services and receive payment for the services they provide. This profession has many tasks, not only auditing financial statements, public accountants are also in charge of management accounting, tax audits, financial report audits, and others.

Accounting is divided into two, namely public accounting and internal accounting. Public accountants are accountants who provide services to meet public needs. According to Law Number 5 of 2022 concerning Public Accountants, public accountants must be permitted to practice public accounting by the Minister of Finance or an authorized official.

A good public accountant must also have a Certified Public Accountant (CPA) which is the highest qualification in the CPA profession in Indonesia and is based on individual competency. Then, based on Minister of Finance Regulation No. 443/KMK.01/2011, it is stipulated that every accountant hired must be a member of IAPI (Indonesian Association of Public Accountants).

Public accountants usually work in a public accounting firm (KAP) or open their own independent KAP. According to Article 3 paragraph (1) of the Public Accountant Law No. 5 of 2011, the services provided by public accountants are:

  • Audit Services on Historical Financial Information.
  • Evaluation Services on Historical Financial Information
  • Other insurance services.

In addition to the services mentioned above, public accountants can provide other services related to accounting, finance and management as determined by law.

Reports written by an accountant are also important in analyzing and making future business decisions. So, to do this job, you need a professional at work.

So, from the assessment above, it can be concluded that this profession is an accountant who has been authorized by the government to practice as an official accountant when reviewing a company’s financial statements.

In addition to verifying financial reports, accountants also have a duty to support the company’s management accounting.

This is intended to facilitate the making of important business decisions by internal parties, such as shareholders and company managers. Another task is to carry out financial report analysis, tax audits, financial report audits and others.

With all these responsibilities and duties, the salary of a public accountant is quite large.

Duties of the Public Accountant Profession

So, after knowing the meaning and services of an accountant, and knowing the duties of this profession.

The public accountant’s job is to review the business financial statements that have been prepared by the business accountant. In particular, they are responsible for checking financial reports for errors according to Indonesian financial standards.

In addition to auditing financial reports, this profession is also responsible for helping companies prepare tax returns to prevent errors, such as tax amnesty and invalid annual tax returns.

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Public accountants can also help companies pay as little tax as possible, while respecting the provisions of tax laws. In addition to verifying financial statements, this service is also responsible for verifying ownership statements on company assets to avoid confiscation.

They are also required to disclose information related to the company’s financial statements in a transparent manner to the public. In the case of inflation, the public accountant’s job is to provide financial solutions to companies so that the right decision can be made.

Public accountants also need to provide information to companies about how to allocate limited resources, such as company assets, employees and capital.

Another job of a public accountant is to review company property ownership records. Its purpose is to prevent businesses from foreclosure or litigation on property purchased or owned. After the public accountant reviews the financial statements, the next task of the public accountant is to communicate the results of the audit in a transparent manner to the public.

The hired public accounting profession is very helpful for clients because it can provide financial solutions to clients so they can make the right decisions. Public accountants can provide guidelines for allocating their finances for asset management, employee recruitment, or capital management.

Types of Public Accountant Services

In addition to analyzing the client company’s financial statements, accountants have various types of services that can be provided to companies or individuals who need them. The following are the types of public accounting services:

1. Accounting or Bookkeeping Services

This type of accounting service is used to assist companies in preparing financial reports, starting from general journalism, balance sheets and ledgers.

This aims to make financial reports accurate and accountable to the company. This type of accounting and bookkeeping services has become a common task for a professional accountant.

2. Tax Services

This tax accounting service only focuses on taking care of client taxes. Accountants are responsible for ensuring that their clients’ taxation is in accordance with the applicable laws and regulations in Indonesia. Hopefully the customer won’t face any legal or tax issues.

Accountants are also responsible for determining their clients’ tax strategies. Public accountants prepare tax documents, arrange audits with the relevant tax authorities, interpret tax laws and interpret any changes to tax regulations from tax laws issued by the government.

3. Management Consulting Services

Currently, accountants also provide management consulting services for businesses in need. It’s about making company financial reports better and better and better audit results.

How to Become a Public Accountant

There are a number of requirements that you must meet if you want to become a public accountant. This requirement has been officially written in law number 5 of 2011, article 5 paragraph 1.

The first requirement is that you have a valid achievement certificate from IAPI or an accredited university for this vocational training. The next requirement is that you must submit proof of participation in PPL (advanced professional education) with a minimum number of credits taken of 60 PPL credit units (SKP) in 2 years .

The next requirement is that you must have practical experience in the field of general auditing, at least 1000 hours in 5 years which is approved by the head of the KAP office. The accountant must be domiciled in the territory of the Unitary State of the Republic of Indonesia and must show an Identity Card. In addition, you must also have an NPWP.

In addition, you must be a member of IAPI and never be penalized for license revocation and never be penalized. Potential public accountants are also not custodians and must prepare and complete a public accountant license application form,

In addition, you must also state that you are not carrying out concurrent functions as described in article 46. You must also write a statement letter that has been stamped and state that the data request you have submitted is correct.

How to Become a Professional Public Accountant

Here are some tips that you may find useful and that you need to know if you want to become a public accountant:

1. Earn a Degree in Accounting Studies

Prior to September 2013, graduates of the S1 or D4 accounting study program must have completed the Accounting Profession Program (PPAk), obtain a national accountant register, and practice accounting before taking the Chartered Accountant Certification Examination (USAP).

However, these graduates can immediately take the certification exam without having to undergo vocational training.

This means that obtaining a degree in accounting, either S1 or D4, is a basic requirement for pursuing your dream of becoming a professional accountant.

2. Choose the Right Specialization

This profession has various specializations with their respective job descriptions, be it auditing, management, budgeting, tax and others. Most accountants have their own specialty and sometimes follow an earned accounting degree.

Make sure you choose the right major that best fits your previously chosen degree and your ability to focus on it.

3. Pass the Public Accountant Examination

There are several differences between an ordinary public accountant and a licensed professional. Public accountants often perform simple tasks such as preparing financial reports, while certified professionals are authorized to perform more professional work such as conducting audits, reviewing reports and representing customers before the IRS.

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So, to become a professional, you must pass the Public Accountant Certificate Examination (USAP).

USAP, according to the Indonesian Public Accountants Association (IAPI), is the highest certification designation for the accounting profession in Indonesia.

This certification is an individual competency-based certification; The basis of credential administration is therefore, and will always be, on the skills an individual requires to practice, or wants, the skills necessary for the profession.

USAP is given during the first two months of each trimester and usually lasts a few days. Candidates can take the sections of the test in any order they choose. There are 3 types of tests that you can choose from, namely the Basic Level Test, the Professional Level Test, and the Assessment Partner Competency Test.

4. More Work Experience

In addition to increasing knowledge through education and training and passing competency exams, professional public accountants must also have experience.

Inexperienced listeners make more mistakes than experienced listeners. Therefore, seek as much work experience in accounting as possible.

5. Commitment to Ethics

Intelligence and intellectual excellence are needed in carrying out the duties of an accountant. However, being an accountant also requires ethics, which will protect you in carrying out your professional functions.

In the Principles of Professional Ethics for the Indonesian Institute of Accountants, the second point regarding the public interest states that each member must always act in the framework of public service and demonstrate a commitment to professionalism.

Therefore, the professional requirement in carrying out official duties is to uphold the established professional principles. A person who carries out this profession can be called an expert if at the time of conducting an audit he conducts an audit in accordance with the regulations set by the agency and in accordance with the code of ethics or professional standards.

6. Sensitive to Technological Developments

Technology has now penetrated all professions, including the accounting profession.

Therefore, accountants must be sensitive to technological developments in order to adapt to changes in the field of accounting.

The solution to this problem can be found in the University Journal. University of Journalism is a special training program that invites customers, partners and students to learn and better understand online accounting software.

With a vision to produce graduates with the best skills and success in modern technology-based accounting, Journal University is the place for you. Register now with University Journal partners at top universities.

Public Accountant in the Capital Market

Based on the Capital Market Law book, the role of a public accountant is to disclose company financial information, audit issuer financial statements, and provide opinions on the numbers in financial statements.

Based on the figures in the financial statements, the public accountant will provide an opinion which can be divided into four, namely:

1. Unqualified Opinion (unqualified)

Known as an Opinion , perfect review, net result, or WTP (Unqualified) rating. This opinion is expressed by a public accountant if the financial statements generally describe a reasonable financial position and results of operations, using the most commonly accepted accounting standards.

2. Qualified Opinion (fair with exception) 

Often known as a qualified opinion, qualified opinion, conditional opinion or qualified opinion. A professional accountant will express this opinion if he or she believes that the financial statements have been properly presented and prepared in accordance with existing financial accounting standards throughout.

However, there are some things that the accountant cannot accept as material or because of some warnings or limitations or exceptions, even if it does not affect the fairness of the financial statements.

3. Adverse Opinion (unfair opinion)

Public accountants will give an unqualified opinion if the financial statements as a whole describe an unfair situation, or because there are estimates or amounts that are dubious or because of the application of other accounting principles. This opinion is expressed if the review results find significant deviations from financial accounting standards.

4. Disclaimer Opinion (statement does not provide an opinion)

This opinion is the opinion of a public accountant who refuses to give an opinion on the financial statements of the companies he examines.

A disclaimer of opinion is made if the accountant considers that his examination is not justified in expressing an opinion on the financial statements or that he is not independent enough to express an opinion on the financial statements in a professional manner.

These objections may arise because of limited scope of the review or because of unusual uncertainties about the amount of expenses or business results.

Accountant Salary

Basically, not only preparing financial reports, but the accounting profession is also responsible for calculating and monitoring the finances of a business or organization. Many of you dream of becoming an accountant, one of the reasons is to get a fairly high salary.

The salary of an accountant for a fresh graduate is around IDR 4-8 million. In addition, an accountant usually has the ability to calculate the value of each company’s tax object.

Author: Ziaggi Fadhil Zahran

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