INTERNAL AUDIT.

 

To improve its Good Corporate Governance (GCG) practices, the Company applied internal control system through the implementation of policies and procedures that are run by the Board of Commissioners, Board of Directors, and all employees.

Internal Audit Unit’s Function and Status
Internal Audit Unit is designed to provide reasonable assurance regarding the reliability of financial reporting, compliance with laws and regulations, risk management, effectiveness and efficiency of operations and to maintain the company’s assets in every level of the organization. Internal audit activities serve to provide assurances and consultations that are independent and objective to the Company. It aims to increase the value and improve the Company’s operational performance through a systematic approach, which is by evaluating
the Company management system, in order to provide added value through recommendations for improvement.
Internal Audit Unit is directly responsible to the President Director. Internal Audit Unit is appointed by the Board of Directors and approved by the Board of Commissioners through the Board of Commissioners’ Decree dated August 15, 2011.

Internal Audit’s Duties and Responsibilities
The following tasks are the responsibility of the internal audit unit :

  1. Preparing and implementing the plan and budget of Annual Internal Audit Activity based on risk priority in accordance with the Company’s objectives.
  2. Conducting inspections and assessments on the efficiency and effectiveness in all areas of the Company’s activities.
  3. Examining and evaluating the implementation of internal control and risk management system in accordance with company’s policies.
  4. Providing improvement suggestions and objective information on the activities examined at all levels of management, as well as making a written report of audit results every month and submitting the report to President Director and the Board of Commissioners with a copy to the Audit Committee.
  5. Monitoring, analyzing and reporting the follow-ups of the improvements that have been suggested.
  6. Cooperating and communicating directly with Audit Committee. Preparing programs to evaluate the quality of internal audit activities.
  7. Conducting a special inspection if necessary.

In carrying out its function, Internal Audit Unit refers to Internal Audit Unit charter set by the Board of Commissioners on August 15, 2011. The Structure of Internal Audit Unit Charter is as follows:

  1. Objectives
  2. Scope of Activities
  3. Structures and Membership
  4. Requirements of Internal Auditors
  5. Duties and Responsibilities
  6. Authorities
  7. Functional Independence
  8. Establishment and Renewal of Charter
  9. Others

In conducting internal audit activities, Internal Audit Unit prepares audit object priorities in the annual audit plan in the internal audit and focuses on business units that have a significant impact on the consolidated financial statements.

Evaluation of Internal Control Systems Effectiveness
Internal Audit Unit continuously evaluates the effectiveness of internal controls at all levels, in implementing policy, procedure, internal control and also risk management to ensure the Company is aligned with the existing provisions. Internal Audit Unit was established to evaluate the implementation of internal control which has become one of management basis to determine the repairs and improvements that allow the Management Company’s operational activities is run effectively and efficiently.
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