The State of Notary as a Legal Auditor

Abstract

The existence of legal auditors as a certified profession in carrying out legal audits is essential and strategic in developing a legal compliance system in Indonesia. However, statutory regulations specifically in UUJN (regulation of notary position) does not regulate the prohibition of a dual notary position as a legal auditor. This study adopts an empirical juridical approach which was conducted in the Special Capital Region of Jakarta. The results of the study showed that there were no statutory provisions regarding the ability of a person who had served as a notary to become a legal auditor. Although, the Notary Position Law and the code of ethics bindthe notary public which do not also prohibit a notary from occupying the position of legal auditor. In the case of a notary and a legal auditor, the potential for a conflict of interest is immense. This was based on the consideration a legal auditor which has the duty to examine and/or assess legal issues related to a company, including the validity of authentic deeds made before a notary official.