PROCEDURES FOR AUDIT IN AREAS OF CUSTOMS AND EXCISE AFFAIRS
Referred to in this Decision as:
The Audit in Customs and Excise Affairs is aimed at safeguarding the state revenues as well as identifying and evaluating the level of compliance of the Company as referred to in Article 3 with the regulations on Customs and Excise Affairs and other regulations, the implementation of which is conducted by and according to the Directorate General of Customs and Excise and the Financial Accountancy Standard.
The Audit in the areas of Customs and Excise Affairs is conducted on the company engaged in the following areas:
The audit in the areas of customs and excise affairs is carried out by the Directorate General of Verification and Audit or the Regional Office.
(1) The Team of Audit consists of one PMA, one PTA and three Auditors.
(2) One of the three Auditors in the Team of Audit is appointed as the Chairman of Auditors.
(1) The Team of Audit can be replaced in the case that the Auditors, PTA or PMA are transferred, considered incapable or at the request of the relevant personne.
(2) The number of Auditors can be increased in the case that the volume of work and the level of difficulties are high.
(1) The implementation of the audit in the areas of Customs and ExciseAffairs is conducted in a planned and incidental way.
(2) The implementation of the audit in the areas of Customs and Excise affairs in a planned way is realized in accordance with the DROA.
(3) The implementation of the audit in the areas of Customs and Excise affairs incidentally is realized on the basis of the order, request or information which is urgent from the Director General of Customs and Excise, the Director of Verification and Audit, other Directorates, the Head of Regional Office, the public, the Company or other agencies.
(1) The DROA shall be prepared by the Directorate of Verification and Audit and the Regional Office in every semester, by using the forms as in Attachment I.
(2) In preparing the DROA as referred to in paragraph 1, the following matters shall be prioritized:
(3) The Head of Regional Office shall send the DROA to the Director of Verification and Audit at the latest 30(thirty) days prior to the period of DROA.
(4) The Director of Verification and Audit evaluates the DROA as referred to in paragraph 3 and gives approval as well as making corrections if needed.
(1) The implementation of the audit shall be completed within a maximal period of 3 (three) months as from the date of the issuance of the letter of assignment.
(2). In the event that the audit can not be completed within the period as referred to in paragraph 1, at the latest 7 (seven) days prior to the period of the completion of the audit, the PMA shall submit the application for the extension of the time to the Director of Verification and Audit or the Head of Regional Office by using the forms in accordance with Attachment II.
(3) Based on the application as referred to in paragraph 2, the Director of Verification and Audit or the Head of Regional Office can give the time extension to complete the audit by using the forms in accordance with Attachment III.
(4) In the event that the application for the time extension is submitted after the period of completion has ended as referred to in paragraph 1, the PMA shall give written explanation on the reason for the delay to the Director of Verification and Audit or to the Head of Regional Office.
(1) The implementation of field audit shall be completed within a maximal period of assignment of 30 (thirty) work days.
(2) In the event that the implementation of the field audit cannot be probably completed within the period of assignment as referred to in paragraph 1, at the latest 7 (seven) days prior to the expiry of the period of assignment, the PMA shall submit the application for extension of the Letter of Assignment to the Director of Verification and Audit or the Head of Regional Office by using the forms in accordance with Attachment IV.
(3) Based on the application as referred to in paragraph 2, the Director of Verification and Audit or the Head of Regional Office can give the time extension by using the forms in accordance with Attachment V.
(4) In the event that the extension is submitted after the expiry of the completion period as referred to in paragraph 1, the PMA shall give written explanation on the reason for the delay to the Director of Verification and Audit or the Head of Regional Office.
The change in the period of audit and the expansion of the object of audit to cover other Companies relating to the Company under audit can only be made on the basis of the instruction or the approval of the Director of Verification and Audit or the Head of Regional Office.
(1) Any implementation of audit is realized on the basis of the Letter of Assignment which is issued and signed by the Director of Verification and Audit or the Head of Regional Office by using the forms in accordance with Attachment VI.
(2) In the event that there are changes or additions as referred to in Article 6, the Director of Verification and Audit or the Head of Regional Office shall issue the Letter of Assignment by using the forms in accordance with Attachment VII.
(3) The changes as referred to in paragraph 2 are made by preparing an Official Report.
(4) The implementation of audit on the same Company, in the subsequent audit period shall be conducted by a different Team of Audit.
(1) Any issuance of the Letter of Assignment shall be accompanied by the issuance of the Letter of Notification on the Implementation of Audit to the Company by using the forms in accordance with Attachment VIII.
(2) In the event that the audit is conducted by the Directorate of Verification and Audit, the Director of Verification and Audit shall issue the Letter of Notification on the Implementation of Audit to the related Regional Office of DJBC (Directorate General of Customs and Excise) by using the forms in accordance with Attachment IX.
(3) In the event that the audit is conducted by the Regional office, the Head of the Regional Office shall submit the copy of the Letter of Assignment as referred to in paragraph 1 to the Director of Verification and Audit.
(1) Any issuance of Letter of Assignment shall be accompanied by the issuance of the List of Questionnaires for the Company audited, which is issued by the Director of Verification and Audit or the Head of Regional Office by using the forms in accordance with Attachment X.
(2) The List of Questionnaires as referred to in paragraph 1 shall be completed by the Management of the Company audited or by personnel representing the company and sent to the Director of Verification and Audit or the Head of Regional Office through the Chairman of Auditors in an envelope sealed by the company.
(3) The List of Questionnaires as referred to in paragraph 2 is used by the Director of Verification and Audit or the Head of Regional Office to evaluate the performance of the Team of Audit and the system of audit.
(1) The Director of Verification and Audit or the Head of Regional Office summons the Management of the Company which will be audited or representing personnel, to provide explanation on the implementation of the audit which will be conducted by using the forms in accordance with Attachment XI.
(2) In the case that the audit conducted is investigative, the summons as referred to in paragraph 1 is not made.
(3) In the case that the Company does not meet the summons, as referred to in paragraph 1, the audit remains to be conducted.
The Team of Audit shall be responsible for the following cases:
(1) Based on the Letter of Assignment, the Team of Audit shall immediately prepare the Plan for Audit.
(2) Based on the Plan for Audit as referred to in paragraph 1,
(3) The Team of Audit shall prepare the Program of Audit, which shall at least cover the Procedures for Audit, Technique of Audit and the responsibilities of PMA, PTA and Auditors.
(1) In the first visit to the Company, the Team of Audit shall carry out the following activities:
(2) Based on the explanation as referred to in paragraph 1 point d, the Team of Audit conducts observation and tests on the implementation of the SPI and SA of the Company to improve the Program of Audit.
(1) The Company which rejects to be audited shall sign the Letter of Statement on the Rejection to be Audited by using the forms in accordance with Attachment XII.
(2) The employees of the Company who reject or who do not want to help the smooth implementation of the audit shall sign the Letter of Statement on the Rejection or Not Helping the Smooth Implementation of Audit, the Team of Audit by using the forms in accordance with Attachment XIII.
(3) In the case that the Company rejects to sign the Letter of Statement on the Rejection to be Audited or the employees of the Company reject to sign the Letter of Statement on the Rejection or Not Helping the Smooth Implementation of Audit, the Team of Audit shall prepare and sign the Official Report on the Rejection to be Audited or Not Helping.
(4) The Company which rejects to be audited or the employees who reject or do not help the smooth implementation of the audit are recommended to the Directorate of P2 or Division P2 which rejects the service of the Customs and Excise (blockage) in the areas of customs and excise and initiate its follow-up in accordance with the existing regula¬tion.
(1) The company which is audited shall show and lend books, records and documents.
(2) The lending and the return of books, records and documents are carried out by preparing the Letter on borrowing the books, records and documents, and the Evidence of Lending and Return of books, records and documents which are signed by the Chairman of the Auditors by using the forms in accordance with Attachments XV and XVI.
(3) The books, records and documents borrowed can be in the forms of photocopy/or copy/back up/extract files with the provision that what the Team of Audit borrows are in accordance with the originals.
(1) The deadline of the delivery of books, records and documents is the end of 3 (three) days as of the receipt of the Letter on Borrowing the books, records and documents as referred to in Article 20 paragraph 2.
(2) In the event that after the deadline as referred to in paragraph 1, the company has not been able yet to lend the books, records and documents, the relevant Company is given the Letter of Warning I.
(3) Before the period of delivery set in the Letter of Warning I has passed, the Company pan submit the application for its extension in writing to the Director of Verification and Audit or the Head of Regional Office.
(4) In the event that the period of delivery of books, records and documents set in the Letter of Warning I and the deadline of the extension have passed and the Company has not delivered them yet, the relevant Company is given the Letter of Warning II.
(5) The deadline given for the delivery of books, records and documents in the Letter of Warning is the end of 2 (two) days as from the receipt of the relevant Letter of Warning.
(6) The Letters of Warning I and II are issued and signed by the Controller of Quality of Audit (PMA) by using the forms in accordance with Attachment XVII.
(7) Before the period of delivery set in the Letter of Warning II has passed, the Company can submit the application for its extension in writing to the Director of Verification and Audit or to the Head of Regional Office.
(8) Based on the application as referred to in paragraphs 3 and 7, the Director of Verification and Audit or the Head of Regional Office can give the time extension for the delivery by using the forms in accordance with Attachment XVIII.
(9) In the event that the time for the delivery of books, records and documents set in the Letter of Warning II has passed and the Company has not yet delivered them, without any permit for the extension of time as referred to in paragraph 8, the Company is considered rejecting or not helping the smooth implementation of the audit and the Company is subjected to sanctions as referred to in Article 19 paragraph 4.
The Team of Audit can take actions in the form of sealing the place or the space in the following cases:
(1) The Team of Audit shall prepare an Audit Working Paper (KKA).
(2) KKA shall at least contain the procedures for audit adopted, tests conducted, evidence and information collected and the conclusions made.
(3) The Team of Audit prepares the DTS by using the forms in accordance with Attachment XIX based on the KKA.
(1) The Head of the Sub Directorate of Audit on the Head of the Audit Division sends the DTS with the Covering Letter to the Company by using the form in accordance with Attachment XX, along with the DTS Approval Statement Sheet by using the form in accordance with Attachment XXI.
(2) The Company shall respond to the DTS in writing by completing it and signing in the column provided and returns it to the Team of Audit at the latest 7 (seven) work days as of the receipt of the Covering Letter as referred to in para¬graph 1.
(3) If needed, before giving the response, the Company can ask for an explanation in writing on the DTS.
(4) Before the deadline as referred to paragraph 2 has passed, the Company can submit the application for time extension in writing to the Director of Verification and Audit or the Head of Regional Office.
(5) Based on the application of the Company as referred to in paragraph 4, the Director of Verification and Audit or the Head of Regional office can give the extension for the submission of the response.
(6) The extension of time for submitting the response can be given once for the maximal period of 7 (seven) work days as of the expiry date of the period as referred to the paragraph 2 by using the form in accordance with Attachment XXII.
(7) In the event that the deadlines as referred to in paragraphs 2 and 6 have passed, the Company still does not submit the response, the Company is considered having approved the entire DTS.
(8) The DTS as referred to in paragraph 7 will be followed up by preparing the LHA.
In addition to sending the response to the DTS as referred to in Article 24, the Company shall:
(1) The final discussion is held in the case that the Company does not agree to part of or the entire DTS and it shall be conducted at the latest 7 (seven) work days after the receipt of Company's response.
(2) The Head of the Sub Directorate of Audit or the Head of the Audit Division invites the Company to hold the Final Discussion by using the form in accordance with Attachment XXIII.
(3) The Final Discussion is held by the Team of Audit with the Management of the Company or the representatives.
(4) The process of the Final Discussion is contained in the Summary of the Final Discussion on Outcome of the Audit by using the form in accordance with Attachment XXIV.
(5) The Final Discussion is closed with the Official Report on Outcome of the Audit by using the form in accordance with Attachment XXV.
(6) The Summary of the Final Discussion on Outcome of the Audit is an integral part of the Official Report on Outcome of the Audit.
(1) The Official Report on Outcome of the Audit as referred to in Article 26 paragraph 5 is attached with:
(2) The List of Audit Findings which is Maintained as referred to in paragraph 1 letter a contains the audit findings which are not approved and are denied by the Company, but the denial cannot be accepted by the Team of Audit.
(3) The List of Audit Findings which is Cancelled as referred to in paragraph 1 letter b contains the audit findings which are not approved and are denied by the Company and the denial-can be accepted by the Team of Audit.
(4) The List of Audit Findings which is Agreed as referred to in paragraph 1 letter c contains the audit findings which are approved by the Company.
(5) The Company and the Team of Audit shall sign the Official Report on Outcome of the Audit and the attachments as referred to in paragraph 1.
(6) In the case that the Company rejects to sign the Official Report on Outcome of the Audit as referred to in Article 26 paragraph 5, the Team of Audit prepares notes in the Official Report on Outcome of the Audit about the rejection.
(1) The LHA is prepared on the basis of the DTS, the DTS Approval Statement Sheet or the Official Report on Outcome of the Audit.
(2) The LHA is prepared in the short and long forms.
(3) The long LHA is prepared in accordance with Attachment XXIX.
(4) The short LHA consists of Chapter I of the long LHA and related KKA to be followed up by the Office of Customs and Excise Service.
(1) The Director of Verification and Audit issues the Letter of Follow-Up to Outcome of the Audit regarding results of the audit by the Directorate of Verification and Audit addressed to the Head of Regional office by using the form in accordance with the Attachment XXX, with copies sent to the Head of Custom and Excise Service Office and the Company attached with the short LHA.
(2) The Head of the Regional Office shall follow up the Letter of Follow-up to Outcome of the Audit as referred to in paragraph 1 by issuing the Official Note for the Follow-up to Outcome of the Audit.
(3) The Head of Regional office issues the Official Note for the Follow-Up to Outcome of the Audit regarding results of the audit by the Regional Office addressed to the Head of the Customs and Excise Service Office with the copy sent to the Company by using the form in accordance with Attachment XXXI the attached with the short LHA.
(4) The copy of the Official Note for Follow-up as referred to paragraph 3 is addressed to the Director of Verification and Audit by attaching the long LHA.
(5) The Head of the Customs and Excise Service Office shall follow up the Official Note for the Follow-up as referred to in paragraphs 2 and 3.
(6) The Head of the Customs and Excise Service Office shall submit the report on the realization of the follow-up as re¬ferred to in paragraph 5 to the Director of Verification and Audit and the Head of Regional Office.
(1) The Directorate of Verification and Audit and the Audit Division shall administer the outcome of the audit and monitor the implementation of the follow-up.
(2) The Head of Regional office prepares the Semester Report on the Implementation of the Audit and sends it to the Director General of Customs and Excise for the attention of the Director of Verification and Audit at the latest 10 (ten) days after the of the semester, by using the form in accordance with attachment XXXII.
All data and information obtained from the Company are secrets of office.
With the enactment of this Decision, the Decision of the Director General of Customs and Excise No.Kep-35/BC/1997 dated April 1, 1997 on the Procedures for Audit in the areas of Customs and Excise Affairs at the Regional Office, Direc¬torate General of Customs and Excise, is revoked and declared void.
(1) Matters which have not been adequately governed in this decision, will be further stipulated by the Director General.
(2) This decision shall come into force as from the date of stipulation and proper corrections will be made in the event that there are errors in this decision.
Stipulated in Jakarta
on March 20, 2000
THE DIRECTOR GENERAL,
sgd
Dr.R.B. PERMANA AGUNG D., M.Sc.
Attachment to DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-12/BC/2000