GENERAL AUDIT OF FINANCIAL STATEMENTS SERVICES

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BDO Indonesia

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SCOPE OF WORK

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SCOPE OF WORK

We will conduct our audit in accordance with auditing standards established by the Indonesian Institute of Certified Public

Accountants. We will perform the audit to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and, as a result from our audit, we will express an opinion on whether

the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit

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

In making our risk assessments, we consider internal control relevant to the entity’s preparation of the financial statements in order

to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant

deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit.

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AUDIT APPROACH AND METHODOLOGY

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• Our global audit strategy and planning approach is business risk focused and tailored to specifically reflect your geographical, operational, regulatory and financial risks. Our audit methodology efficiently and consistently manages risk for our clients and ourselves and will ensure that an integrated, efficient and robust audit and tax compliance approach is delivered through short chains of command.

• As you would expect, our audit will be an appropriate mix of controls assessment, analytical procedures and substantive tests. We will work with you to ensure we make the best use of information already available and give clear guidance on what needs to be prepared ahead of our work.

• We will develop an in-depth understanding of the accounting issues and challenges currently being faced. Our team will achieve this by adopting a collaborative style of working and by building strong working relationships with your accounting teams.

THE BDO APPROACH Tailored To Your Specific Situation

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• As part of the annual planning cycle we shall also review communications with the Board. It is vital that there is a clear understanding of when and how communications should be made.

• Our management letter, which will make up part of our report to the Board, will focus on providing commercial commentary on matters identified from the audit, which are valuable to the improvement and efficiency of the group.

• As an important client, our involvement with you is not limited to when we will be doing the work. We will be in regular contact throughout the year to keep you up to date on market issues and accounting developments – as well as dealing upfront with potential issues.

THE BDO APPROACH (CONT.) Tailored To Your Specific Situation

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AUDIT METHODOLOGY

• High level review of financial information • Structured meetings with key people across selected locations • Discuss initial findings with management • Develop detailed work plan using audit software • Present and discuss audit plan at pre-year end with the Board

• Carry out detailed analytical review results • Thorough testing and assessment of management controls and systems • Visit selected offices to review accounting procedures • Provide detailed management letter to be discussed with Management and

Audit Committee

PLANNING THE AUDIT

FIELD WORK

THE BDO APPROACH (CONT.) Tailored To Your Specific Situation

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AUDIT METHODOLOGY

• Analyse results to ensure alignment to expectations • Re-visit and address any outstanding issues • Progress activity and complete work undertaken at interim • Internal quality control • Completion meeting with management and the Board to discuss issues arising

• Debriefing teams • Discussing improvements for future activity

FINAL VISIT

AUDIT COMPLETION

THE BDO APPROACH (CONT.) Tailored To Your Specific Situation

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OUR TEAM

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A TEAM SELECTED TO DELIVER YOUR REQUIREMENTS

The team has been carefully selected to ensure the best people, with the knowledge and experience, are involved and committed to delivering the work

• The team will be managed and co-ordinated centrally to ensure effective and timely delivery

• All team members have excellent process and project management skills

• We will work closely with you throughout the year, providing practical support and challenge on an ongoing basis

• The structure opposite provides you with an outline of how the team will be managed and who will be responsible for delivering each key service

• The teams will work closely together to ensure a seamless audit sign-off process

OUR TEAM

We pride ourselves on delivering efficient and effective projects through short chains of command

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OUR PROFESSIONAL EXPERIENCE

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• Our significant clients are from the full spectrum of type sub sectors. We have specific insight and experience in the various sector.

• Our industry focused approach brings together people with diverse experience, providing a broader perspective and skills focused on your needs.

• We have significant presence in the industry and use our extensive networks for the benefit of our clients, introducing them to important contacts within the industry.

• By understanding the challenges our clients face from an industry perspective, we are able to deliver more relevant, focused and practical advice, making a real difference to their business performance.

OUR PROVEN EXPERIENCE

For more information please contact: BDO INDONESIA

Sylvester Wali, swali@bdo.co.id

KAP Tanubrata Sutanto Fahmi Bambang & Rekan Prudential Tower 16th-18th Floor Jl. Jenderal Sudirman, Kav. 79 Jakarta 12910, INDONESIA Tel : +62-21 5795 7300 Fax : +62-21 5795 7301 www.bdo.co.id

About BDO

BDO is the one of the largest global network of public accounting, tax and advisory firms which perform professional services. These firms have representation in 154 territories, with 64,300 people working out of over 1,400 offices worldwide.

BDO member firm in Indonesia dated back to 1992 when Drs Richard B Tanubrata was the Managing Partner of KAP Drs RB Tanubrata, a public accountant firm that was founded in 1979.