Nama : Delta Anando
Npm : 1912120011
Kelas : 2AK P1
Scandal of PT. Kimia Farma Tbk.
PT Kimia Farma is one of the state-owned pharmaceutical producers in Indonesia. During an audit on December 31, 2001, Kimia Farma's management reported a net profit of Rp 132 billion, and the report was audited by Hans Tuanakotta & Mustofa (HTM). However, the Ministry of BUMN and Bapepam considered that the net profit was too large and contained engineering elements. After a re-audit, on the 3rd October 2002 Kimia Farma financial statements were restated, because a fundamental error had been found. In the new financial statement, the profit presented is only IDR 99.56 billion, or lower by IDR 32.6 billion, or 24.7% of the reported initial profit. The error arose in the Raw Material Industry unit, which was an overstated sales error of Rp 2.7 billion, in the Central Logistics unit in the form of overstated goods inventory of Rp 23.9 billion, in the Pharmaceutical Wholesaler unit in the form of overstated inventory totaling Rp 8.1 billion and overstated sales of IDR 10.7 billion.
Misstatement related to inventory arises because the value in the inventory price list is inflated. PT Kimia Farma, through its production director, published two inventory prices (master prices) on February 1 and 3, 2002. The price lists as of February 3 have been inflated and used as the basis for inventory valuation at Kimia Farma's distribution unit as of December 31, 2001. While the misstatement related to sales is by double recording of sales. This double recording is carried out on units that are not sampled by accountants, so that it cannot be detected. Based on Bapepam's investigation, it was stated that the KAP that audited PT Kimia Farma's financial statements had followed the applicable audit standards, but failed to detect the fraud. In addition, the KAP was not proven to have helped management commit such fraud.
In my opinion on this case: KAP that audits the financial statements of PT. KIMIA FARMA has followed the audit standard but there are still errors when auditing so the fraud is not proven