On Saturday, November 12, 2016 Guest Lecture from Deloitte Indonesia held a discussion about Internal Control Over Financial Reporting (ICFR) for Accountant Profession Education Study Program, Faculty of Economics and Business Universitas Gadjah Mada (PPAk FEB UGM). This lecture aims to provide a sharing session for students about the practical aspects of ICFR. The main speaker was Mr. Abdiansyah Prahasto, Manager of Risk and Operation Consultant at Deloitte with about 5 years of experience in this field.

The topic discussed in the first session was the background of ICFR. The most Important thing to know is that ICFR is a rule initiated and enforced by the US Congress which enacted Sarbanes Oxley Act (SOX) and established Public Accounting Oversight Board (PCAOB). SOX section 404 on Management assessment of internal controls was established to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. The SEC strives to promote a market environment that is worthy of the public's trust.

The second session discussed about the reason to conduct ICFR. The main reason of ICFR is to assure the integrity of financial statement. The company must develop an Internal Control Regulation that will reasonably assure the internal control process and mechanism to achieve an unqualified opinion by the auditor. This opinion will affect the sustainability of the company and enhance stakeholder trust.

Mr. Abdiansyah Prahasto also shared about the steps to conduct ICFR. As stated on previously, before the auditor audit the financial report; the company should develop a regulation of Internal Control. Internal control in a company should consist of five components of the COSO Internal Control Integrated Framework in order to be effective. ICFR must be conducted and supported by the principal executive and principal financial officers to provide reasonable assurance, and reliability through its policies procedures that helps ensure accurate data, authorizations, and reliable prevention and detection mechanisms.

It was a great session and the audiences showed a lot of enthusiasms. The session was moderated by Ibu Fitri Amalia, Lecturer of Information Systems and Internal Control subject at the Accountant Profession Education Study Program, Faculty of Economics and Business, Universitas Gadjah Mada (PPAk FEB UGM).

Source: Adityo Prabowo/ppak feb