Internal Control & Audit

INTERNAL CONTROL SYSTEM

The Internal Control System in the Company aims to support the achievement of the Company’s performance objective, improve value to the stakeholders and assure effectiveness and efficiency of operation, reliability of financial reports, sufficiency of fianncial and operational controls, and compliance with prevailing laws and regulations.

Internal control system serves to manage and control the risks properly so as to create healthy and safe operations. This component covers all policies and procedures across all operational functions that aim to protect the Company’s assets. The implementation of internal control is targeted to support the achievement of operational effectiveness and efficiency. A good internal control system is expected to support the achievement of the determined performance goals, improve the management’s confidence, encourage compliance with regulations and minimize risk of loss.

The Board of Commissioners and the Board of Directors believe that good performance corporate value improvement can only be achieved through the implementation of proper and good corporate governance. It is implemented, one of which, through the effective internal control system.

 

Evaluation of the Effectiveness of the Internal Control System

The Internal Audit periodically conducts an internal control to ensure good coordination among the Company’s control functions so that every function can perform effectively and efficiently. Operational inspection is carried out to determine any weakness or breach in every function of operational activities. Furthermore, the results of the operational inspection are used as input for the management to improve the internal control system in each of less effective operational function.

The evaluation of the effectiveness of the internal control system is carried out through:

  1. Evaluation of activities, procedures compliance, effectiveness and efficiency in every operational activity of the Company. The compliance refers to the compliance with policies/SOP and compliance with the applicable laws and regulations. The evaluation results are discussed and made for a corrective action. The follow-up on such corrective action is monitored by the Internal Audit and relevant departments.
  2. Evaluation of the internal control in financial reporting that is designed and supervised by the President Director and Finance Director, and implemented by the Board of Directors and the entire management to provide an adequate assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements for external purposes in accordance with the generally accepted accounting principles.

 

INTERNAL AUDIT UNIT

The main function of the Internal Audit Unit is to support the Board of Directors in supervising the implementation of corporate governance implementation, the effectiveness of risk management process and internal control to ensure the optimal implementation of the governance practices. This function is established to perform an audit function and provide a consultation through the delivery of independent, professional, and objective recommendations aimed to increase value and improve the operations of the Company and its subsidiaries.

In carrying out its activities, the Internal Audit Unit is guided by the Internal Audit Charter, which has been approved by the Board of Commissioners, and works in coordination with the Audit Committee. The Company’s Internal Audit Charter is drawn up in accordance with the prevailing law and professional standards issued by the Internal Standards for the Professional Practice of Internal Auditing. The Internal Audit Division has full access to all functions, records, physical assets and employees of the Company and its subsidiaries.

In accordance with OJK Regulation No. 56/POJK.04/2015 dated December 23, 2015, the appointment, replacement and dismissal of Internal Audit Unit shall be reported to OJK.

Internal Audit Unit is an independent working unit led by Head of Internal Audit Unit. The Head of Internal Audit Unit is appointed and dismissed by the President Director with the approval of the Board of Commissioners. The Head of Internal Audit is responsible to the President Director.

 

DUTIES, RESPONSIBILITIES, AND AUTHORITIES OF INTERNAL AUDIT

Duties and responsibilities of the Internal Audit Unit are as follows:

  1. Prepare and carry out an annual Internal Audit Plan.
  2. Assess the effectiveness of the internal control system, risk management system, and information technology system in accordance with the Company’s policies.
  3. Verify and assess the efficiency and effectiveness of finance, accounting, operations, human resources, marketing, information technology and other activities.
  4. Conduct an audit investigation, if necessary.
  5. Examine compliance with the applicable rules and regulations in the Company and its subsidiaries.
  6. Develop and conduct risk-based Internal Audit Plan for the Company.
  7. Provide suggestion for improvement and objective information regarding the activities examined in all management levels.
  8. Prepare an audit report and submit the report to the President Director and the Board of Commissioners.
  9. Monitor, analyze, and report the follow-up actions on suggested improvement.
  10. Work closely with the Audit Committee.
  11. Conduct special investigation if necessary.
  12. Coordinate on internal and external audit activities to avoid duplication.

Based on the above duties and responsibilities, the Internal Audit Unit has the authority to:

  1. Access all relevant information about the Company relating to its duties and functions.
  2. Communicate directly to the Board of Directors, Board of Commissioners, and/or Audit Committee.
  3. Convene periodic and special meetings with the Board of Directors, Board of Commissioners, and/or Audit Committee.
  4. Coordinate its activities with the activities of the external auditor.

 

QUALIFICATIONS OF INTERNAL AUDIT UNIT

All personnels in the Internal Audit Unit have met the qualifications as stipulated in POJK No. 56/2015 as follows :

  • have exemplary integrity and professional behaviour, independent, honest, and objective in performing their duties.
  • have the knowledge and experience regarding the audit techniques and other relevant disciplines in their respective areas.
  • have the knowledge of the laws and regulations in the capital market as well as other related laws and regulations.
  • have the ability to interact and communicate both verbally and in writing effectively.
  • adhere to professional standards issued by the Association of Internal Audit.
  • comply with Internal Audit’s Code of Ethics.
  • maintain the confidentiality of the information and/or data related to the company’s implementation of the tasks and responsibilities of the Internal Audit except as required by legislation or decision or order from the court.
  • understand the principles of good corporate governance and risk management.
  • willing to improve the knowledge, skills, and professional capabilities on an ongoing basis.

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    HEAD OF INTERNAL AUDIT PROFILE

    Fery Iriyawan, SE, QIA, CISA, CFE, ERMCP, CIA, Head of Internal Audit
    Indonesian citizen, domiciled in Jakarta. Mr. Fery Iriyawan serves as the Head of Internal Audit of the Company by way of Decree of the Board of Directors No.  002/DOID/SKDir/XII/2017 dated December 11, 2017. He began his career as Auditor in 2008 at KAP Salaki Salaki (JHI International) and KAP RSM AAJ Associates (RSM International). Prior to joining the Company he held various positions at PT Serasi Autoraya with his last position as Head of Internal Audit Department. He obtained a Bachelor’s degree in Accounting Economics from Bina Nusantara University, Jakarta. He holds several certifications namely CISA (Certified Information System Auditor), CFE (Certified Fraud Examiner), QIA (Qualified Internal Auditor), ERMCP (Enterprise Risk Management Certified Professional) and CIA (Certified Internal Auditor).