News : KPK Request that Internal Auditors Prevent ‘Money Leaks’

News : KPK Request that Internal Auditors Prevent ‘Money Leaks’
The Corruption Eradication Commission (KPK) requested that the government’s internal auditors identify corrupt acts that result in national financial losses. KPK hopes that this will eliminate opportunities for corruption and resultant state losses.

“There are 30 kinds of crimes that lead to state losses. Some of these are bribery, fraud and extortion. Internal auditors must identify each and every one of these acts,” said the KPK Director of Internal Monitoring, Chesna F. Anwar in Jakarta, yesterday.

Internal auditors, said Chesna, are not limited to auditors from the Audit and Development Supervising Agency (BPKP). In her opinion, there should be internal auditors in a number of government institutions in the form of an inspector general. “If this occurred, the potential to plug the ‘financial leaks’ would be much greater,” she said.

According to Chesna, in addition to plugging ‘leaks’ of state funds, the abilities of internal auditors could assist each institution in improving their financial reporting. As there are not enough effective internal auditors, she said, the National Audit Board has issued a disclaimer on all reports received.

The National Deputy Accountant of BPKP, Ardan Perdana, claimed that maximizing the role of internal auditors can uncover ‘leaks’ of state funds. For this reason, BPKP encourages internal auditors to optimize monitoring by applying performance based budgeting. “Performance based budgeting creates a more detailed budget so the opportunities for abuse are reduced,” Ardan said.

Three types of strategies should be applied to optimize the role of internal auditors in preventing ‘leaks’. These are pre-emotive, preventative and repressive strategies. Principles from the pre-emptive and preventative approaches can be applied by increasing awareness of performance based budgeting and evaluating it’s application. “Whereas the repressive principle can be applied by auditing the nominal budget,” Arden concluded.

Source : Seputar Indonesia, 13 November 2008

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