MOSCOW, NOVEMBER 12 – 14, 2013

THE RESEARCH 1.Respondents 8 respondents from SAI Indonesia : auditor, investigator, R &D 2.Time 3 weeks (Sept to Oct 2013) : distribution, collection, process

Results – Corruption

Q1 Legal status of SAI Q2 Organizational Structure of SAI Q3 Fixed term of Board or Head of SAI Q4 Relationship of SAI with government Q5 Fiscal or financial independence of SAI Constitution Board or collegiate model YesIndependentNo

Results – Corruption Q6 Legal mandate of SAI Q7 Audit Services of SAI Q8 Specific articles about role on anti- corruption Q9 SAI’s anti- corruption strategy Q10 SAI’s strategic goals & actions Central & local government, state-owned enterprises, social undertakings Financial, performance, compliance, environmental Yes : When finding fraud indications, an auditor report to law enforcement authorities Establishing a special unit for forensic audit Capacity building for forensic audit

Results – Corruption Q11 Detecting corruption embedded in regular audit services Q12 Special departments of SAI assigned to anti- corruption activities Q13 How long such departments have been in place? Q14 SAI has adequate audit personnel Q15 SAI provides regular anti- fraud & anti- corruption training to auditors Yes, incidental Yes, Forensic audit unit 5 – 10 yearsVery few Fraud awareness; Fraud auditing; Fraud risk assessment

Results – Corruption Q16 SAI has specific manual or guidelines Q17 SAI’s approach in anti- corruption Q18 SAI’s course of action upon discovery of red flags Q19 SAI’s facilities or mechanisms Q20 SAI’s mandate, tools or techniques Yes : Forensic audit guidelines Both Proactive & Reactive The red flags will be referred to the special department  Anti-corruption educational/trai ning programs  Governing Code of Ethics for Government Accountants and Auditors Illegal gratuities Extortion Asset misappropriation Nepotism Illegal activities in procurement

Results – Corruption Q21 The most instrumental audit services in the detection and prevention of corruption Q22 Audit tools & techniques performed to detect corrupt activities & transactions Q23 The most high profile corruption case uncovered Q24 SAI’s reporting detected corrupt activities Q25 Parties to whom SAI submits report containing findings on corrupt activities 1.Fraud Audit 2. Financial Audit 3.Compliance Audit 4.Performance Audit 1.Data collecting 2.Risk Assessment & analysis 3.Data analysis 4.Interviews & inquiries 5.Case analysis Cases 1.Infrastructure (sport center) case; 2.Bank bailout; 3.Procurement of Police driving simulator device; The best audit practices 1.Data analysis; 2.Interviews SAI issues a special report Law Enforcement Body

Results – Corruption Q26 Legal Actions SAI can initiate Q27 Mechanism to ensure that the audit findings and recommendation s are properly acted upon Q28 Field of the anti- corruption efforts that SAI contribute best Q29 SAI’s performance Q30 SAI’s method to obtain objective information about the effectiveness of its anti- corruption policy and performance Recommendations 1.Monitoring on audit recommendati on follow-up 2.Coordination with law enforcement body 1.Detective actions 2.Preventive actions Fair 1.In-house research and studies 2.Third-party satisfaction surveys

Results – Corruption Q31 Implementation of IntoSAINT Methodology Q32 Controls having sufficient maturity level Q33 Changes in the legal framework and organizationa l structure of your SAI Q34 Factors hampering SAI’s role in the fight against corruption Q35 Laws, rules & regulations guarantee those conducting fraud/forensic audits the rights to the following Yes 1.Management attitude 2.Vulnerability/ risk analysis 3.Recruitment & selection Yes : Establish a permanent unit dealing with forensic audit 1.Collusion between law enforcers and corrupt people 2.Authorized officials lack commitment 3. Some superiors cover up for their subordinates 4. Lack of competent and experienced staff to handle corruption cases Access to government offices’ accounting records, financial statements, contracts and other legal instruments

Results – Corruption Q36 The role of SAI towards creating awareness and promoting good governance Q37 SAI’s cooperation with foreign counterparts Q38 SAI’s legal instrument for a joint undertaking 1.Focus on preventive actions regarding fraud or corruption, 2.Promote fraud control system as a tool of fraud prevention; 3.Recommend improvements on internal control; 4.Uphold personal ethics and integrity; 5.Detect red flags 6.Proceed them to law enforcement agencies 1.USAID 2.ASOSAI 3.INTOSAI WG FACML Yes : Agreement or Memorandum of Understanding with law enforcement bodies

Results – Money Laundering

Q1 Specific article in constitution or law Q2 SAI’s anti- money laundering strategy Q3 Embedded detecting money laundering in audit services Q4 SAI’s special unit dealing with money laundering Q5 SAI’s special unit in place No 1.Yes, but incidental 2.No, not a concern No, SAI does not deal with money laundering None

Results – Money Laundering Q6 SAI’s approach Q7 SAI’s action upon red flags Q8 Mechanism to promote detection of money laundering Q9 The most accessible ML’s basic steps Q10 SAI’s Specific manual 1.Not in mandate 2.Limited to red flags Red flags will be referred to anti- ML agency Governing Code of Ethics for Government Accountants and Auditors 1.None 2.Placement No

Results – Money Laundering Q11 SAI’s personnel Q12 Regular training for auditors Q13 SAI Report money laundering Q14 Parties whom SAI submit audit report Q15 SAI’s legal actions Very fewNoNo special report Law enforcement agencies Recommendation

Results – Money Laundering Q16 SAI’s anti- money laundering efforts Q17 SAI’s performance in combating ML Q18 SAI’s method to obtain informationa bout the effectiveness of its anti-ML policy and performance Q19 SAI’s access to bank records Q20 Hampering Factors to SAI’s role 1.None 2.Detective No Mandate NoneNo 1.Authorized officials lack commitment 2.Lack of competent and experienced staff to handle money laundering cases

Results – Money Laundering Q21 Improvement to SAI’s role Q22 Exchange of information & experience Q23 Legal Instruments providing for a joint undertaking among SAI & anti- corruption agencies Q24 Cooperation & attachment of officers 1.Laws & regulation 2.Reorganization No

Thank You Very Much For Your Attention..