Certified Accountant
Hivos Southeast Asia (Hivos SEA) seeks qualified Indonesian candidates for the position of Certified Accountant.
Background
Publish What You Pay Indonesia (PWYP) agrees to engage the registered accounting firm ‘the Accountant’ to perform a compilation engagement and to report in connection with the Funding Agreement No: GO OPEN 1017471 with Hivos concerning the project Open Contracting. Compilation reporting shall be facilitated by registered Accountants and/or Auditors.
Ethical principles governing the accountant’s professional responsibilities for compilation engagements will include integrity, objectivity, and professional competence and due care, confidentiality, professional behaviour, technical standards and Independence.
Subject and Objective of the compilation engagement
The subject of the compilation engagement are the project financial statements for Quarterly Financial Report for the period December 2018 – June 2019.
The objective of a compilation engagement is for the accountant to use their accounting expertise (as opposed to auditing expertise) to collect, classify and summarize financial information. This will entail reducing detailed project financial data to a manageable and understandable form without a requirement to test the assertions underlying that information.
A compilation engagement includes the preparation of project financial statements but may also include the collection, classification and summarization of other financial information. Users of the project financial report benefit as a result of the accountant’s involvement because the service has been performed with professional competence and due care.
Planning the compilation engagement
The Accountant must discuss terms and scope of the engagement with the partner (and the engagement team) and prepare an engagement letter setting forth the terms and scope of the engagement. This will include details of the nature of the engagement (that it is neither an audit, nor a review therefore no assurance expressed); nature of information to be supplied by the partner entity; basis of accounting; form and distribution of the report.
The Accountant shall adequately plan the compilation engagement well in advance of the work and ensure the execution of the compilation engagement assuring the highest professional quality in an economical and efficient manner and within the agreed timetable.
Place & Time of compilation engagement
The compilation engagement is to be carried out in Jakarta between 24 June – 1 July 2019.
Documents of reference
The following documents are to be considered by the Accountant as basic references for performing the compilation engagement:
- Project agreement
- Budgets and project activity plans
- Trial balance, detailed ledgers, cash books, bank statements – all the underlying documents related to the financial records or accounting system
- Financial and operational reports concerning the project/program which include a variance report
- Minutes of the board and project steering committee
- Any other documents the accountant deems to be necessary to enable them to compile the project financial report
Management representation of full disclosure
The Accountant shall obtain a management representation letter signed by the management of the partner organization, certifying:
- The organization’s responsibility for the keeping of accounts and financial documents that are correct, complete, fair, representing the true facts, in conformity with the objectives of the project, the documents of reference (description of the project, contracts, budgets, etc.) and national legislation
- That all accounting records, supporting and other documents, minutes and any other pertinent information necessary for the engagement be at the disposal of the accountant
- Fact that management is responsible for the accuracy and completeness of the information supplied to the accountant for the completeness and accuracy of the compiled financial information.
- Basis of accounting on which the financial information is to be compiled and the fact that it, and any known departures therefrom, will be disclosed.
- The availability of any information and explanations, either orally or by written confirmation, which might be required by the accountant in the execution of his/her mandate
Detailed compilation procedures
The accountant should obtain a general knowledge of the business and operations of the entity and should be familiar with the accounting principles and practices of the industry in which the entity operates and with the form and content of the financial information that is appropriate in the circumstances.
A summary of the detailed procedures is included. The accountant shall be guided by the International Standard on compilation engagements 4410 (or other recognized standard) in selecting the procedures for the engagement
Closing meeting
After the completion of the compilation engagement, the accountant shall hold a closing meeting with the persons responsible for the project/program (directors) and the staff responsible for accounting and reporting. The meeting shall address the results of the compilation engagement.
Reporting
A sample report for a standard opinion is included. Reference can be made to International Standard on compilation Engagements 4410 for sample wording of alternate formats of compilation engagement reports.
The report should include a statement that the engagement was performed in accordance with the International Standard on Related Services applicable to compilation engagements (or national standards and practices) ; a statement that the accountant is independent of the entity; a statement that management is responsible for the financial information compiled by the accountant; a statement that neither an audit nor a review has been carried out and a paragraph (when considered necessary) drawing attention to the disclosure of material departures from the applicable financial reporting framework.
The compilation report should be accompanied by a report to management which outlines key observations and points of attention related to accounting and internal control.
Duration of work
The compilation engagement is expected to take an average of five (5) working days. Draft reports should be submitted by 27 June 2019 and final reports by 1 July 2019.
