Internal Audit
The Internal Audit Unit is an organ of the Company in charge of providing assurance and consultation that is independent and objective with the aim of increasing the value of the Company and improving operational performance, through a systematic approach, by evaluating and improving the effectiveness of risk management, internal control and corporate governance processes.
The Internal Audit Unit is under the Board of Directors, led by the Head of Internal Audit Unit who is appointed and dismissed directly by the President Director after being approved by the Board of Commissioners. Meanwhile, members of the Internal Audit Unit are directly responsible to the Head of Internal Audit Unit.
Internal Audit Unit Charter
The implementation of duties and responsibilities of the Internal Audit Unit has been regulated based on the Internal Audit Charter which has been approved by the Board of Directors. The contents of the guidelines have been adjusted to the Company’s Articles of Association and POJK No. 56/POJK.04/2015 concerning the Establishment and Guidelines for the Preparation of Internal Audit Charter.
Duties and Responsibilities of Internal Audit Unit
- Develop and implement an annual internal audit plan;
- Test and evaluate the implementation of internal control and risk management systems in accordance with the Company’s policies;
- Examine and assess the efficiency and effectiveness in finance, accounting, operations, human resources, marketing, information technology and other activities;
- Provide suggestions for improvement and objective information about the audited activities to all levels of Management;
- Preparing audit reports and submitting them to the President Director and the Board of Commissioners;
- Monitor, analyze and report on the implementation of follow-up improvements that have been suggested;
- Working closely with the Audit Committee;
- Develop a program to evaluate the quality of internal audit activities performed; and
- Carry out special examinations, if necessary.
Internal Audit Unit Authority
- Comprehensive, free, relevant and unrestricted access to all records, physical property and employees related to the performance of any duties, with absolute responsibility for the confidentiality and security of records and information;
- Communicate directly with the Board of Directors, Board of Commissioners and/or Audit Committee, as well as members of the Board of Directors, Board of Commissioners and/or Audit Committee (if necessary);
- Hold regular and/or incidental meetings with the Board of Directors, Board of Commissioners and/or Audit Committee (if required);
- Coordinate its activities with the external auditor (if required);
- Request or obtain support from internal employees of the Company or external parties, if needed, in order to carry out its duties;
- Determine audit topics, schedule, scope of work, procedures and techniques, and allocate resources to achieve audit objectives in consultation with the Audit Committee and President Director;
- Conduct audits of follow-up and improvements made by the audited party;
- Coordinate and communicate with the Internal Audit function of the Company’s Subsidiaries on a mutually agreed period, to obtain updates on their audit plans, significant audit findings and activities;
- Conduct audits or reviews of the Company’s Subsidiaries in accordance with the Internal Audit plan and/or when required or assigned by the Audit Committee, the Board of Commissioners and/or the Board of Directors of the Company. During the audit, the Internal Audit Unit has the authority as mentioned in number 1 – 8 above; and
- Assessing the effectiveness of the Internal Audit function in the Company’s Subsidiaries.