Internal Audit Charter

MISI

Providing confidence (assurance) and consultations independently and objectively in order to increase the value and improve the operations of the company, through a systematic approach, by evaluating and improving the effectiveness of risk management, control, and governance processes.

SCOPE OF TASK

Determining whether risk management, control, and management of the company that designed and implemented the management and functioning well enough, include:

  • Risks have been reasonably identified and managed. Interactions with the manager taking place in accordance properly.
  • Important information financial, managerial, and operational is accurate, reliable, and punctual.
  • Employees  carrying on activities accordance with policies, standards, procedures, laws and regulations.
  • Resources acquired economically, used efficiently, and adequately protected.
  • Program, Plans and Goals able to achieved.
  •  Quality and continuous improvement preserved within the control of the company.
  • Prominent regulations and legislation influence the company has been known and are properly addressed.

Potential improvements over management control, profitability, and the company’s image can be found during the audit process, and will be communicated to the appropriate management level.

Internal Audit can also be a partner on problem solving and operational management issues facing the company.

STRUCTURE AND STATUS

The structure and the position of the Internal Audit department are as follows:

  • Internal Audit Department headed by a Head of Internal Audit.
  • Head of Internal Audit is appointed and dismissed by the Board of Directors with the approval of the Board of Commissioners.
  • The Board of Directors may terminate the Head of Internal Audit, after obtaining the approval of the Board of Commissioners, if the Head of Internal Audit does not qualify as an internal auditor as set forth in this charter and / or failing or incompetent duties.
  • Head of Internal Audit is responsible to the Board of Directors.
  • Auditors who sat in the Internal Audit department is directly responsible to the Head of Internal Audit.
DUTIES AND RESPONSIBILITIES

Internal Audit Department has duties and responsibilities:>

  • Develop and implement Annual Internal Audit Plan;
  • To verify and evaluate the implementation of the internal control and risk management system in accordance with company policy;
  • Perform inspection and assessment of the efficiency and effectiveness of finance, accounting, operations, human resources, marketing, information technology and other activities;
  • Provide suggestions for improvements and objective information about the activities examined at all levels of management;
  • Create audit reports and submit the report to the Board of Directors and the Board of Commissioners;
  • Monitor, analyze and report on implementation of the improvements that have been suggested;
  • Working closely with the Audit Committee;
  • Develop a program to evaluate the quality of internal audit activities performed;
  • Conducting special inspections if necessary.

 

AUTHORITY

The authority of the Internal Audit department include among others:

  • Access all relevant information about the company related to the duties and functions;
  •  To communicate directly with the Board of Directors, Board of Commissioners, and / or the Audit Committee and member of the Board of Directors, Board of Commissioners, and / or the Audit Committee;
  • Meeting on a regular basis and incidental to the Board of Directors, Board of Commissioners, and / or the Audit Committee;
  • To coordinate audit activities with the the external auditor;
  • Allocating human resources, determine the frequency, select subjects, determine scope of responsibility and apply the techniques required to achieve the objectives of the audit.

 

CODE OF ETHICS

Internal Audit Code of Ethics includes two elements, namely (1) Basic Principles (Principles) and (2) Code of Conduct (Rule of Conduct).

Basic Principles (Principles)

Internal auditors are expected to apply and uphold the following principles:

  • Integrity. Integrity Internal auditors establishes trust and thus provides the basis for trust in the judgment of their internal audit expertise.
  • Objectivity. Internal Auditor represent the highest level of professional objectivity in gathering, evaluating and communicating information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not over influenced by their own interests or by others in forming the judgment skills.
  • Confidentiality. Internal auditors respect the value and ownership of information they receive and do not disclose information without a legitimate authority unless there is a lawful obligation or profession to carrying it out.
  • Competency. Internal auditors apply the knowledge, skills, and experience necessary to carry out services / internal audit services.

Code of Conduct

Integrity
Internal Auditor:

  • Will carry out its work honestly, diligently and responsibly.
  • Will observe the law and make disclosures expected by the law and the profession.
  • Consciously not going to be atop of any unauthorized activity, or engage in any action that could eliminate the trust to the internal audit profession or the Internal Audit department.
  • Legitimately and ethically will respect and contribute to the company’s goals.


Objectivity
Internal Auditor:

  • Will not take part in any activity or any relationship that may damage or impair their judgment allegedly dispassionate. This participation includes activities or relationships that may be contrary to the interests of the company.
  • Will not accept anything that may damage or suspected damage consideration of their professional expertise.
  • Will disclose all important facts known to them that, if not disclosed might change activity reporting under investigation.


Confidentiality  

Internal Auditor:

  • Cautious in using and protecting information obtained during an assignment.
  • Legitimately and ethically will not use information for any personal gain or in any manner that would be contrary to law or which would adversely affect the company’s goals.


Competency
Internal Auditor:

  • Will only be involved in the service in which they have knowledge, skills and experience required.
  •  Will carry out internal audit services in accordance with the Standards of Professional Practice of Internal Auditing
  • Will continually improve its ability and effectiveness as well as quality of service.

 

LIABILITY

Head of Internal Audit in carrying out their duties is responsible to the Board of Directors and have access to the BOC, to:

  • Delivering the annual revaluation of the status of the adequacy and effectiveness of internal control and risk management of the operating company / existing business unit.
  • Reporting significant matters with respect to internal control of companies / business units, and recommendations for improvement that able to be achieved.
  • Periodically submit the status and results of the Annual Audit Plan and the adequacy of resources department.
  • Coordinate and cooperate with other control functions that exist (audit committee, external auditors, etc.).