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Building Investor and Partner Trust Through Professional Auditing
Why Trust Matters?
In today’s business world, trust is the primary capital for building long-term relationships with investors and business partners. This trust can grow when a company is managed openly, honestly, and in accordance with the law. One of the most important ways to demonstrate this is by conducting professional audits.
An audit is not just about checking whether a company’s financial statements and legal documents are accurate—it also serves as a tool to assess whether the company is being run properly and in compliance with regulations. In Indonesia, auditing has become a crucial part of companies that aim to grow while staying compliant with applicable laws.
Understanding Audits and Their Types
An audit is a regular and structured process conducted to examine and ensure that a company’s documents, financial information, and operational activities are accurate and compliant with regulations.
Audits are generally divided into two types: internal and external.
- Internal audit is conducted by a team from within the company to check whether the company’s activities are running efficiently and in accordance with applicable rules or procedures.
- External audit is conducted by an independent party who is not affiliated with the company, tasked with assessing whether corporate documents and financial statements have been prepared correctly and are trustworthy.
Aligning Audits with Good Corporate Governance
Auditing supports the implementation of Good Corporate Governance (GCG) principles such as:
- Accountability
- Transparency
- Fairness
Audits help create transparency by providing clear, accurate, and verifiable financial reports and legal documents. This gives stakeholders, including investors and business partners, confidence that the company is being managed responsibly.
Audits as a Gateway to Funding and Regulatory Compliance
Research shows that companies with credible audits enjoy higher investor confidence and greater ease in obtaining funding. In Indonesia, audit requirements are regulated by several laws, including:
- Limited Liability Company Law (UUPT)
- Financial Services Authority (OJK) regulations
- Directorate General of Taxes (DJP) provisions
Audit obligations generally apply to:
- Public companies
- Businesses with public funding
- Entities receiving grants or loans from international institutions
Audits are often a key requirement in processes such as:
- Mergers
- Acquisitions
- Fundraising
- Initial Public Offerings (IPOs)
They are also used to avoid potential business disputes and to ensure compliance with contracts and applicable regulations. An effective audit strengthens the connection between corporate governance and the trust of both the public and investors.
Strategic Collaboration with Legal Assistance
Legal assistance is essential, especially if the audit results uncover issues that could lead to legal problems for the company. In this context, law firms play a role in:
- Preparing legal documentation to support the audit
- Providing legal defense or clarification in the event of significant audit findings
- Managing strategic collaboration between auditors and legal advisors
Professional Auditing as a Long-Term Strategy
A professionally conducted audit is not merely a formal requirement to be fulfilled—it is also part of a long-term strategy to build the company’s reputation and trust.
When corporate documents and financial statements are prepared honestly and transparently, the company demonstrates that it is managed with full responsibility. This, in turn, increases investor and business partner confidence in establishing long-term cooperation.