20231128_JECC_Perubahan Profesi Penunjang_31543307_lamp3.pdf

Nexia KANAKA PURADIREDJA SUHARTONO
KPS

An dudit also includes evatuating the appropriateness of accounting policies used and the
teasonableness of accounting estimates made by management, as well as evaluating the. overall
presentation of the financial statements.

The audit also includes assessing the accounting standards used and significant estimates made by
management, as well as evaluating the overall financial-statement presentation in accordance with
PSAK/accounting standards set out by the Indonesia Institute of Accountants (IAI) and OJK
regulation VIII.G.7.

Our opinion on these financial statements shall be determined by the results of the audit procedures
that we conducted. Accordingly, we do not guarantee, that we will issue an unmodified opinion on
the Company's financial statements.

2. Responsibility of the Company's Managements.

The Management is responsible for:

a. the preparation and fair presentation of the financial statements in accordance with Indonesia
Financial Accounting Standards and 03K Regulation VIII.G.7. and

b. the design and implementation of internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatemenit, whether
due to fraud or error.
Our audits encompass audit of the schedule and other financial information which forim an integral
part of the basic financial statements. However, the audit is not intended to express opinion on
the fair presentation on the schedules and other financial information individually, but in
connection with the fair presentation of financial statements as a whole.

The financial statements are presented in Bahasa Indonesia/ English language including fair
presentation and adeguate disclosures in accordance with the Financial Accounting standards. The
Company's management will also.provide us with Directors Statement stating the responsibility of the
management signed off by the Director to be reported in the audited financial statements.

Management agrees to provide us:

a) Financial statements (unaudited) which consist of Statements of financial position, profit loss
and other comprehensive income, changes in eguity and cash flow and notes to financial
statements

b) Access to all information of which management is aware that is relevant to the preparation of the
financial statements such as records, documentation and other matters:

c) Additional information that we may reguest from management for the. purpose of the audit: and

d) Unrestricted access to persons within the Company's entity from whom we determine it necessary
to obtain audit evidence,

As. part-of the audit process we will reguire a management representation letter stating the following
but not limited to that financiat statements is the responsibility of management and other written
representation to confirm concerning representations made by the management to us in connection
with the audit, such representation covers that the financial statements is prepared and presented
by Management in good faith, completeness of the minutes of meetings, assets pledged and also
management assurance that fraud that has become known by the management has been reflected and
disclosed in the financial statements, adeguacy of bad debts provision, contingent assets/liability
and others matters known by the management.

Upon delivery of draft report, in order for us to finalize such report, the management shall initial the
draft as approval of the audited figures including adjustments therein. h

Nexia KANAKA PURADIREDJA SUHARTONO
KPS

Pursuant to the prevaiting laws, statement of financial position and Statement of profit and loss and
other comprehensive income must be signed off by the Directors, and the notes to the financiat
statements. must be initialized on each page.

3. Internal Control
Our audit.encompasses,-on Sample basis, the testing and evaluation of the internal control as well as
examination of certain accounting records that we consider necessary. However, our audits do not
cover testing and evaluation of all transactions that occursed in the Company, as the audit is not
specifically designed to detect errors.or fraud that may occur.

Our audits encompass inherent risk that should there be material error or. misstatement or
irregularities, including fraud or embezzlement, might be undetected. However, in the event that we
encounter such matters during the audit, we will inform to the management.

4. Risk Based Audit
The atidit approach will be influenced by the understanding & evaluation of the effective internal
control af the Company. Risk of Material Mistatement identified during planning stage, both risks at
financial statement level and asertion level, will become our audit focus.

IF'internal.control structure is effective for prevention and detection of significant errors, we should
consider'using analytical procedures and also verification on significant transactions.

However, if we consider that the internal control is ineffective, or substantive procedures are. most
cost effective in the evaluation of figures in the financial statement we should consider substantive
procedures.

Nonetheless, please note that applying substantive method would not necessarily negate for the
evaluation of internal control. Shoutd we encounter errors, we would evaluate further weakness in the
control contributing to such weakness, and will become recommendation for-improvement.

5. Approach to Appendix and Other Financial Information
Our.audit encompass to the appendix and other financial information which form an integral part of
basic finariciat statements. However, our audit is not intended to express opinion on the fairness of
such individual appendix and other financial information, but.in relation to presentation of financial
statement as a whole.

6. Inspection to the existence of fixed.assets.
Inspection to the existence of fixed assets shail be conducted on sample basis, mainly to assets
with significant value. Sample is to be selected from list of fixed assets supporting figures in the
financial statements.

7. Analytical Review on Statement of Comprehensive Income (SCI) Components:
Analytical procedures on the SCI components will be conducted to identify abnormal fluctuation.

8. Approach to Electronic Data Processing (EDP)
As part of the internal controlassessment, we wili also conduct review of EDP which is used to prepare
financial statements: however our review is not intended to express opinion. on the EDP.

9. Taxation
Our audits do not constitute tax audit which would have been conducted by the-Directorate. General
of Taxation (DGT), accordingly our audit should not be relied on to detect errors that might have
been encountered by the tax auditor from'the DGT.

3

Nexia KANAKA PURADIREDJA SUHARTONO
KPS

In'accordance with tax regulations, the DGT has an authority to reguest the'data/information reguired
for their audit of the Company's tax obtigations directly to KAP Kanaka Puradiredja, Suhartono (KPS).
In relation to this obtigation, the Company agrees to release KPS from all.claims for the deliverable
of data/information to the DGT of the Ministry of Finance.

In accordance with code of professional ethic, we are responsible for the confidentiality of clients"
information. Nonetheles, based on the law and regulation such confidentiality is not vatid for the
purposes of oversight by the Ministry of Finance based on Law No. 5 /2011 regarding Public
Accountants and for the purposes of tax audit, tax collection, or tax examination on criminal
proceeding in taxation as regulated in Law No 6/1983 regarding general provision of taxation and as
amended by Law no 28/2007 regarding the general provision.of taxation.

In order to comply with the regulations, we wish to emphasis that the Company agrees to.us that we
provide access to our audit working papers to the authorized 'parties according to the law and
regulation. Expenses related to this compliance, if any, will be borne by.the Company and we wilt
invoice according to the time that we consume to conduct such. work.

However we. will not charge the Company with such expenses to fulfill obligations if the Company
agrees to follow up such compliance.

10. Expert involvement
We will hire experts in the course of our audit when it deem necessary. The involvement of experts
will be communicated to the Company's. management, and the costs-of expert shall be reimbursed by
the Company.

Cc. DELIVERABLES

Upori completion of the audit we will deliver an audit reports on the Company' financial-statements for
the year ended 31 December 2023. The report wilt be prepared in Indonesia and English language
(bilingual) in 5 (Five copies)

In accotdance with Public Accountants Professional Standards (SPAP), any publication of the financial
Statements audited by us or teferred to our name, must be reviewed and approved in written by us. We
may also deliver'a management letter containing matters that come to our attention if during the audit
we find weaknesses in the internat control system, application of accounting standards that do not:
conform to the Financial Accounting Standards and other matters that we. think need management
attention.

This erigagement is declared to be.completed by the statement of completion signed by both parties.
Shouid there be assignment other than covered in this engagement, it will be covered in a separate
engagement letter.

D. PROFESSIONAL FEE

Based on our understanding on the Company's operation and also audit plan for this engagement, we
propose an audit fee of Rp150.000.000 (one hundred and fifty million rupiah) This audit fee exclude
VAT 119 and out-of-pocket expenses (OPE) which cover in town travel, such as taxi fares and also out
of town travel, such as taxi fares to airport and tand transport, air fares, photocopy, telecommunication,
accommodation, laundry and lumpsum living allowances. Out of pocket.expenses wili be charged for
reimbursement at cost. Lumpsum rate per day for out oftowni as follows : $

4

Nexia KANAKA PURADIREDJA SUHARTONO
KPS

» Partner Rp1.000.000/day
& Manajer incharge Rp800.000/day
» Incharge (ketuatim) — Rp600.000/day
0 Asisten Rp500.000/day

The fee was calculated based on the estimated working days reguired by our 'staffs to complete the
assignment. The standard rate of'the staffs working on the assignments varies according to the degree
of responsibility involved and the level of experiences and skills.

The above fees are determined based on-assumption that necessary data reguired for audit purpose are
made available to us, the Company has-a satisfactory internal control, and we will get full cooperation
from the-Company's:staffs and management during the fieldwork.

The fee is payable as follows:
@ First instaliment of.507c upon agreement of this proposal.
@ Second instaliment of 4094 field the work stars.
& Final payment of 1076 upon delivery of draft.

The audit field work will commence after the first installment is received and the unaudited financial
statements, all data and information are made available to us, Data and information that we need for.the
audit wil be submitted to the management soon after we receive written confirmation on'the appointment
KAP KPS,

E. PREREOUISITE
Ba

To enable us to conduct the audit-effectively and to meet the schedule, we prereguisite the followings:

1. The management shall appoint competent counterparts, who willassist.us to access data, information
and other documents which we consider necessary. We will deliver a formal data reguest. The filed
work shall commence provided that all data and information are made available to us.

2. During the course of the audit, we will use communication media through oral, written, and electronic
communication such as letter, memo and email which constitute acceptable audit communication.

3. The Company declares and assures that it has not appointed other auditor or public accounting firms
for the scope of the audit as stipulated in this letter of agreement.

4. The Company's management allows its Bank creditor to.reguest for information to us and allows us to
give information reguested by bank creditor, this is an exception to confidentiality clause.

5. For the purpose of this audit engagement, the Management states that the-Company only maintain
single general purpose accounts which'is prepared for its users such as creditor, tax as well as other
users.

6. Due to the importance of management representation letter, as above mentioned in B:2 we kindly
reguest that the representation letter is submitted to us prior to the issuance of the audit report.
Accordingly, the management agrees.to release us, KAP KPS and its staff from any claim, liability and
costs disbursed as a conseguent of misrepresentation made by management in connection to the audit
services is this engagement letter.

KANAKA PURADIREDJA SUHARTONO

F. OTHERS

1. Termination and Withdrawal
In accordance with public accountants professional standards, we will withdraw from this
engagement should there be:

a. significant and principle differences and unresolved with the management in connection
with the application of auditing-standards and or financial accounting standards in the
Companys records, or

. other matters which cause ourindependent as an auditor cannot be maintained.

Cc. Tbe Company's management fails to meet. the prereguisite and commitment to provide all
data reguired for the audit.

The occurance.of such events may cause termination of this agreement and the Company. agrees
to release us'from any ciaims, including the ciaim to return fee that we have received,

2. The.company agrees that KAP KPS and'staffs do. not have any tiability to the company on. claims
arises exceeding the fee that has been received by us in connection to this engagement.

3. The company: also agrees to release and indemnity KPS & Staffs from any claims.by any other
parties, which derived directly-or indirectly from this engagement.

4. In accordance with the Circular Letter of the Head of Financial Professional Development Center -
Ministry of Finance of the Republic of Indonesia (P2PK) No. P2PK, SE-2 / PPPK./ 2019 concerning
"Obligation to Report Client's Financiat Statements by Public Accounting Firm", the Company
understand and agrees that the audited financial statements will be submitted by Nexia KPS to
P2PK otherwise if the Company does not agree, the Company signs thie Declaration of Disagreement
based on that provisions and submits it to Nexia KPS to be submitted to P2PK.

5. Both parties agree to select Kantor Panitera Pengadilan Negeri Jakarta Selatan on the execution
of this assignment.

6. 1f there is any dispute arising during the course of this engagement which cannot be resolved,
then both parties agree to be settled by the Indonesian Institute of Certified Pubtic Accountant
(TAPI).

7. In accordance with. Auditing Standards (SA720), any other information in documents containing
audited financial reports, including annual reports and securities offering documents, if any, is
associated with our name as auditors, we are reguired to read and consider whether the
information and presentation in these documents there are material inconsistencies with the
information and presentation in the audited: financial statements. For such information,
management agrees to.inform us before it is published for our approval and signing. We are not
obliged to perform any procedure to corroborate other'information contained in those documents
as part of this agreement.

8. In accordance with Circular Letter (SE) P2PK No. SE-7 / PPPK-/ 2019 concerning the Application
of the Principles of Recognizing Service Users (PMPJ) for Accountants and Public Accountants,
every audit engagement must appiy the PMPJ procedure regulated in these provisions. Forthis
the Company agrees. to apply PMPJ procedures according to the provisions

9. IFthere is-any change of the objective and scope of engagement within this proposal, both parties,
agree to discuss it for mutual agreement and revise and amend this engagement accordingly.

10. The audit documentation for this engagement'is tiie property of KPS and constitutes confidential
information. However, we may be reguested to make certain audit documentation available to
regulatory/government agencies pursuant to the authority given to it by law or regutation. h

Nexia KANAKA PURADIREDJA SUHARTONO
KPS

11. If our audit report is reissued for purposes of securities offering and other financial transactions,
then we should be informed to ensure compatibility of the reporting and is not intended to
conform our audit to other parties.

12. If the management of the Company decided to discontinue or terminate the assignment while it
is ongoing or before it was finalized, then all agreed fees and expenses in this agreement should
be paid in full amount.

13. This proposal is valid for 14 days
14. For this assignment, the partner in charge will be Mr. Syamsudin

G. CONCLUSION

Should you agree with the content of this proposal, please sign on the space provided below and return
to us one signed set of the proposal. The signed set therefore, becomes an agreement and assignment
letter for the scope mentioned above.

This engagement shall be completed by Certificate of Engagement Completion and Hand Over of Review
Report signed by the Company and us. In the event that the Company engages us with other work related
to the scope of this engagement, such work must be stipulated with different engagement letter.

We thank you for your kind attention and are looking forward to doing business with you.

Very Truly yours, Approved by:
PT JEMBO CABLE COMPANY TBK

Aris Suryanta, Ak., CA, CPA Name : S ,
Managing Partner Title - B
Date : ATU 2013