Internal Audit

Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and corporate governance processes.

Internal Audit Unit is an independent working unit in the Company that incorporates an internal auditing function. The head of the Internal Audit Unit is appointed and reports directly to President Director. The appointment and dismissal of the Head of the Internal Audit Unit must be through approval of the Board of Commissioners and reported to OJK.

In 2022, the Head of the Internal Audit Unit has changed from Mr. Yulius Ajie to Mr. Joni Susanto Agus based on the Board of Directors Decree Number: 002/SM/SK-DIR/ VI/2022 dated June 30, 2022, concerning Changes to the Head of Internal Audit Unit and the Internal Audit Charter. The Board approved this change of Commissioners with Letter of Approval Number: 001/SP-DEKOM/VI/2022 dated June 28, 2022, and reported to OJK through letter number 007/SM-CS/VII/2022 dated July 1, 2022.

Profile of the Head of Internal Audit Unit

Internal Audit Charter

The Internal Audit Unit has an Internal Audit Charter as a working guide in carrying out its duties. The Internal Audit Charter was issued on June 18, 2013, and was last updated on June 28, 2022. The Internal Audit Charter contains, among others:

1. Definitions,
2. Mission,
3. Purposes,
4. Core Principles,
5. Structure and Position,
6. Members,
7. Requirements and Qualifications of Internal Auditors,
8. Scope,
9. Tasks and Responsibilities,
10. Authorities,
11. Independence, Objectivity and Professionalism,
12. Proficiency, Due Professional Care, and Continuing Professional Development,
13. Code of Ethics, and
14. Reporting Activities.

Download: Internal Audit Charter 2022 (PDF, 11MB)

Duties and Responsibilities

The duties and responsibilities of the Internal Audit Unit in accordance with Internal Audit Charter are as follows:

1. To prepare risk-based annual internal audit plan, manpower planning, and budget of the Internal Audit Unit to be approved by the President Director and Audit Committee. In the case of significant variation, change, or modification to the plan submitted, the Head of the Internal Audit Unit will submit the revised plan to the President Director and Audit Committee,
2. To assess the adequacy, examine and evaluate the internal control and risk management system according to company policy,
3. To assess the effectiveness and efficiency of the control procedures mainly in finance, accounting, operations, human resources, marketing, information technology and other activity,
4. To provide suggestions for improvements and objective information about the activities examined at all levels of management,
5. The Internal Audit Unit is responsible for the reporting of performance and audit findings to President Director and the Board of Commissioners through the Audit Committee,
6. To monitor, analyze and report the performance of corrective follow up as recommended,
7. The Internal Audit Unit will work together with the Audit Committee so that Audit Committee will perform its role in accordance with the applicable regulations,
8. To prepare the program to evaluate the quality of internal audit,
9. To perform special audit if required,
10. The Internal Audit Unit is responsible for performing ad-hoc assignment assigned by President Director or Audit Committee in so far as the assignment does not bear conflict of interest with respect to the said adhoc assignment,
11. The Head of Internal Audit will assess the staff’s skills, understanding, and knowledge in relation to the audit performed. If the Internal Audit Unit lacks the skills, understanding, and adequate knowledge for certain required matters, the Head of the Internal Audit Unit will report to the President Director, and the Audit Committee will appoint an independent third party.

Summary of Internal Audit Unit Activities in 2022

In 2022, The Internal Audit Unit conducted activities including:

1. Carried out the annual Internal Audit Plan.
2. Reviewed the effectiveness of the internal control system, risk management system and corporate governance practices, and evaluate the efficiency and effectiveness of the Company’s operations.
3. Submitted and discussed internal audit reports with the Audit Committee, the Board of Directors, and senior management.
4. Monitored and ensured proper and timely corrective actions were performed by the management.