ABSTRACT
Nearshoring is the most appropriate form of outsourcing, among others, for audit assignments. Audit firm, KAP Suharli, Sugiharto & Rekan (SW Indonesia), which has been registered, accredited, and verified by regulators and associations as well as being a member of SW International, is able to unites legendary Indonesian accountants to drive business transformation through three positionings, namely Indonesia Investment Gateway, Connecting Archipelago, and Asia Pacific Business Hub. The goal of nearshoring audit work within SW Indonesia network member firms means integrating the effectiveness and efficiency of audits, improving client service responsiveness and flexibility, and mitigating further current setbacks of the industry, such as human resources shortages.
Nearshoring is the outsourcing of business processes to companies in a nearby country, often sharing a border with the target country. Nearby country usually has similarity in culture, history, style and deep understanding each other. Including the more similarity or approach or understanding each other in Accounting Standards, Auditing Standards, Tax Regulation, Corporate Governance, and other Business Practice.
Nearshoring is the most appropriate form of outsourcing for audit assignments, Common accounting standards, auditing standards, business environment approaches and others, in addition to offshoring to geographically distant countries. The work of an accounting firm in Australia or Singapore, applying the nearshoring model to an accounting firm in Indonesia makes more sense than being far from an accounting firm in the United States.
SW Indonesia audit firm, KAP Suharli, Sugiharto & Rekan, is registered at several list of regulators and professional associations of accounts, both in Indonesia and in other countries. Being a registered and accredited audit firm is important for the client’s consideration that SW Indonesia has been successfully verified through a series of assessments from the regulators and associations. Once registered, SW Indonesia is required to comply with quality standards, operational management, professional service, responsive behaviour, human resource development, sustainability concerns and other international standard. SW Indonesia unites legendary Indonesian accountants and creates a cross-generation synergy among senior and young partners, driving business transformation through three positioning, Indonesia Investment Gateway, Connecting Archipelago and Asia Pacific Business Hub.
SW Indonesia, a world-class accounting and advisory firm and a member of SW International, aspires to enhance expanded capacity within the SW International professional services network, specifically SW Australia, SW Singapore, SW China, SW Hong Kong and other member firms in Southeast Asia region through nearshoring audit work.
SW Indonesia can offer audit functions to nearby SW network member firms proffering potential benefits such as access to highly trained personnel, expanded capacity and cost savings, at the same time maintaining proximity and easier communication. SW Indonesia has available competent personnel who are familiar and well versed in terms of International Financial Reporting Standards and International Standards on Auditing and who can execute and deliver high quality audit. Being within the same region provides advantages to have a faster and more robust coordination and communication between SW Indonesia and other SW network member firms.
Nearshoring audit work within SW network member firms means integrating the effectiveness and efficiency of audits, improving client service responsiveness and flexibility, and mitigating further current setbacks of the industry, such as human resources shortages, while ensuring that the implementation will maintain high quality audit.
Nearshoring audit work will create enhanced opportunities for the SW principal engagement team by delegating to SW Indonesia auditors the execution and completion of the basic audit tasks involving less judgment. Therefore, this shift in responsibilities will enable SW principal engagement team to focus on complex issues and spend more time on review, consequently, adds value to the firm. Nearshoring audit work will lead to cost reduction, save time in audit process and eventually will result to a faster completion of the audit process.
SW Indonesia is equipped with highly credible professional auditors who can handle and execute audit tasks that require technical expertise and professional judgment. SW Indonesia personnel undertake continuing professional development that helps personnel to enhance their knowledge, skills and competencies throughout their career, and ensuring they are progressive and effective in their profession. Thus, SW Indonesia can uphold the credibility of audit outcomes in the event the SW network member firm will request the SW Indonesia to handle more audit tasks which require higher level of critical thinking and comprehensive skills.
Through establishing strong coordination and communication channel, defining clear objectives, prioritizing training and integration, and continuously monitoring performance of nearshoring audit work, SW Indonesia believes that overall, there will be net benefit within the SW network member firms by engaging in nearshoring audit work activity. Following these best practices, SW network member firms can align efficiency while maintaining audit quality. Given the range of tasks that can be covered through the nearshoring audit activity, expanded capacity will be the main added value to the SW network member firms to meet rising opportunities and to anticipate future growth.
Collaboration of accounting firms in the Southeast Asia region or termed SW Southeast Asia can strengthen the concept of nearshoring to other offices in China or Australia. Adoption of International Financial Reposting Standard (IFRS) and Internal Auditing Standards (IAS) in domestic member countries can even reach accounting firms in European countries to do offshoring, in addition to nearshoring to accounting firms in Asia Pacific.
