INTERNAL AUDIT & INTERNAL CONTROL


To ensure the company’s operations run in accordance with the Standard Operating Procedures [SOP], internal control functions that operate independently assisting the President Director in carrying out its monitoring and controlling duties are required. In Phapros, internal control functions are carried out by the Internal Audit Unit [IAU].             

The IAU’s formation and presence are based on:

  • Law Number 19 Year 2003 on the State-Owned Enterprises [SOEs].
  • Government Regulation Number 12 Year 1998 Dated on 17 January 1998 on Limited Liability Company, listed in Chapter III Internal Audit; Article 28, Article 29, and Article 30.
  • Minister of SOEs Regulation Number PER-01/MBU/2011 dated on 1 August 2011 on the Implementation of Good Corporate Governance [GCG] in the State-Owned Enterprises [SOEs].
  • The Chairman of the Capital Market Supervisory Agency and Financial Institution’s Decree Number Kep-496/BL/2008 dated on 28 November 2008 regarding the Guidelines for the Preparation of Internal Audit Charter.
  • The Board of Commissioners’ Decree Number 18/ SK.Kom-PH/VII/2014 dated on 4 July 2014 regarding Organization Structure of PT Phapros, Tbk.

Internal Control Unit (SPI) is a unit working unit whose task is to provide assurance (assurance) and serves to conduct consultations objective and independent with the aim of increasing the company's value and confidence of our shareholders and other stakeholders to manage the company to ensure that the assets of the company have used effectively and efficiently and are reported in the financial statements accurately and fairly in accordance with applicable regulations and examine whether a framework and process control, risk management and corporate governance are functioning properly.

 DUTIES AND RESPONSIBILITIES SPI

  • Work program and annual budgets in the areas of Internal Audit of the company;

  • Develop risk-based inspection objects and carry out the Work Program Annual Inspection (PKPT) SPI;

  • Make examination report (LHP) and submit the report to the Managing Director;

  • Provide information on the activities examined at all levels of management as well as suggestions for improvements to the operations of the company;

  • Monitor, analyze and report on implementation of the improvements that have been suggested;

  • Develop strategy, policy and planning for an integrated and professional supervision;

  • Conducting special inspections if necessary and requested by the Director.

  • Evaluating the implementation of internal control and risk management system in accordance with company policy;

  • In cooperation with the Audit Committee and SPI RNI as Parent Company;

  • Monitoring the implementation of GCG.

In accordance with Law No. 19 in 2003, SPI is responsible directly to the Managing Director as well as acting as a partner of the Audit Committee and SPI RNI as Parent Company in carrying out oversight functions and the monitoring of follow-up on the findings of the examination and inspection process development.

SPI shall foster relationships with the Audit Committee, because of the Audit Committee, is a supporter of organ set up to assist the Board in monitoring activities.

Position

The status and role of Internal Audit should be placed in a position that allows the Internal Control Unit can act independently in performing its duties. The position of Internal Audit is directly under the President, within the meaning of Head of Internal Audit is responsible to the Director, Internal Audit as an extension of the board of directors in terms of monitoring the implementation of activities that can not be executed by the directors.
Reports generated by the Internal Audit Unit is delivered directly to the Managing Director or other Directors if required and also can be provided to the Audit Committee in the event of a written request by the Board of Commissioners to the Managing Director.

In accordance with his position, Internal Audit Unit is independent of other work units within the company.

Internal Audit Structure

SPI is supervised by a Chief known as Internal Audit Unit Head who is appointed and discharged by President Director with approval from the Board of Commissioners.

Director may dismiss the Head of Internal Control Unit, after obtaining the approval of the Board of Commissioners, if the Head of Internal Audit Unit does not qualify as Auditor Internal Audit Unit as set out in this internal audit charter and / or failed or incompetent duties.

Auditors who sat in the Internal Audit Unit is responsible directly to the Head of Internal Audit.