Frequently Asked Questions: #pma-company-financial-audit-frequency

PMA companies in Indonesia are required to conduct financial audits annually. Here are the key points regarding financial audits for PMA companies:

• Annual Requirement: All PMA companies must undergo a financial audit once a year.

• Deadline: The audited financial statements must be prepared within 6 months after the end of the company’s fiscal year.

• Auditor Qualifications: The audit must be conducted by a licensed public accountant registered with the Indonesian Ministry of Finance.

• Scope: The audit covers the company’s financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements.

• Purpose:

  • To ensure compliance with Indonesian Financial Accounting Standards (PSAK)
  • To provide assurance to stakeholders about the company’s financial position
  • To fulfill regulatory requirements for tax reporting and other statutory obligations

• Exceptions: Small companies with total assets or annual revenue below certain thresholds may be exempt from the mandatory audit requirement. However, it’s advisable to consult with a professional or refer to the latest regulations to confirm your company’s status.

• Additional Audits: Some industries or specific circumstances may require more frequent or specialized audits. Always check the regulations specific to your business sector.

• Preparation: It’s recommended to maintain proper bookkeeping and financial records throughout the year to facilitate a smooth audit process.

Remember that while the audit is an annual requirement, maintaining accurate and up-to-date financial records should be an ongoing process throughout the year.

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