SARBANES OXLEY ROLE IN THE DITECTIONS FINANCIAL STATEMEN FRAUD IN TELKOM TO SUPPORT GOOD CORPORATE GOVERNANCE

Abstract

Sarbanes Oxley is a United States federal law is set on July 30, 2002 in response to a new auditing standard that can be used to detect the possibility of fraud on the financial statements. As one of the state-owned Telkom in Indonesia have applied and implemented Sarbanes Oxley Act (SOA) as the standard compliance and corporate governance, a new, very strict and demanding transparency and disclosure to investors and the public. The success of Telkom is a pioneer for other state companies in good financial governance that have been acceptable in the international arena. Financial Statement Fraud (Fraud) can occur a the transaction level, account level, and at the level of the financial statements. To make good financial governance by implementing Sarbanes Oxley Sarbanes Oxley telecoms, especially SOA Section 404 which requires TELKOM management to be responsible for doing and maintaining internal controls over financial reporting ("ICOFR") is adequate, in order to provide adequate assurance related the reliability of financial reporting and the preparation of Vendor financial statements are consistent with GAAP. SOA section 302 of adequate disclosure in financial reporting. Commitment from telecoms to deal with fraud is also reflected in the decision of the Board of Directors of Telkom's anti-fraud and how to deal with fraud.