Audit problems at Telkom

PT Telekomunikasi Indonesia Tbk, the largest company by market capitalization (USD12 billion), announced two weeks ago that it would not meet the deadline of 2005 financial report which is tomorrow.

Why?

Because it has audit problem due to the changes in the accounting standard imposed in the country which pushed the telecommunication giant to re-adjust its assets.
"While the adjustment would not influence the income statement for 2005, we can't afford to have serious auditing problem at the company, especially if Telkom follow stock market regulator's suggestion to revise the report later on," said one analyst.
Surprisingly no detail information available for public investors about what's going on exactly. But it seems the asset swap between Telkom and Indosat (the second largest telecommunication player) back in 2002 is at the center of the audit issue.
The year 2005 auditor and 2002 auditor are from different accounting firms. KPMG for 2005, PricewaterhouseCoopers for 2002. The problem, none of these auditors willing to restate the 2002 report.
This is not the first time Telkom experienced audit problem. Telkom was pushed to reaudit the 2002 financial year.
Anyway, nobody expects Telkom would be like Enron, right?

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