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INTP:IJ Rp. 12,450 altimage 2.68%
22-Oct-2020 15:47
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INTP:IJ Rp. 12450 altimage 2.68%
22-Oct-2020 15:47

Internal Audit

Internal Audit is an activity providing assurance and independent and objective consultation with the purpose to increase value and to improve the Company’s operations through a systematic approach by evaluating and improving the effectiveness of risk management, internal control, and corporate governance process in the Company.

Legal Basis
Indocement has established an Internal Audit Division with functions to perform Internal Audit in the Company based on Regulation No. IX.I.7 attachment to the Decision of Chairman of Bapepam and LK No. Kep-496/BL/2008 dated November 28, 2008, in conjunction with OJK Regulation No. 56/POJK.04/2015 dated December 23, 2015, on the Establishment and Guidelines to Prepare the Internal Audit Unit Charter.

Internal Audit Charter
Indocement’s Internal Audit Charter was updated and established on May 10, 2016 Indocement’s Internal Audit Charter, among others, regulates:
1. Roles and structure of Internal Audit Division;
2. Requirements for internal auditors;
3. Objectives, duties, responsibilities, and authority of Internal Audit Division;
4. Relationship with external auditors;
5. Accountability, independence, and professional standards for Internal Audit Division;
6. Guidelines and code of ethics of Internal Audit Division.

Party Appointing and Dismissing The Internal Audit Unit Head
The Internal Audit Division is part of the Company’s organizational structure which is directly under the President Director. The Internal Audit Division Manager is appointed and dismissed based on the Board of Directors’ decision, which shall be approved by the Board of Commissioners.

Internal Audit Position in the Organization

Profile of Internal Audit Head



Auditor's Code of Ethics
1. Integrity
2. Objectivity
3. Confidentiality
4. Competence

Internal Audit Division's Duties and Responsibilities
Internal Audit Division evaluates the control process, risk, and system in the Company and its subsidiaries. This division also performs audit function on the Company’s operations. The Internal Audit Division effectively assists members of the management in performing their duties and responsibilities, such as:
1. Effectively assisting all members of the management in performing their responsibilities by:
a. Providing an objective analysis and assessment on activities;
b. Identifying various operations and good practices for sharing;
c. Identifying weakness/disadvantage of system design;
d. Reviewing the eff mitigation initiatives;
e. Reviewing the effectiveness of GCG implementation;
2. Assessing the design, effectiveness, and implementation of administrative, financial, operating, and security controls as well as the reliability and integrity of the related data that is developed and reported by the Company;
3. Evaluating the adequacy of compliance with plans, policies and procedures and the Company’s compliance with the applicable laws and regulations;
4. Ensuring the adequacy of controls to safeguard Company assets and, if deemed appropriate, verifying the existence of assets;
5. Performing special audits assigned directly by the management of the Company, Board of Directors, or Audit Committee;
6. Conducting an assessment of the economical and efficient use of the Company’s resources and providing appropriate recommendations to the management.

Internal Audit provides assurance, as well as independent and objective consultations, to generate added value and improve operational activities. The Internal Audit Division supports the purposes and objectives of the Company through a systematic, orderly, and structured approach in evaluating and increasing the effectiveness of risk management, internal control, and governance process.

Total Personel, Qualifications, and Certifications of Officers in Internal Audit Division
The Internal Audit Division increase the organization performance effectiveness by having adequate number of personnel and sufficient competence through certifications in audit field. At the end of 2019, the Internal Audit Division was supported by 11 Employees with the following qualifications and certifications:

Audit Division's Work Program and Its Realization

Findings and Follows Up
There were 162 internal audit findings and 173 action plans throughout 2019. Until December 31, 2019, 44 action plans were realized.

Internal Audit Division's Competency Development Program


 

Indocement, a producer of Semen Tiga Roda Cement and Semen Rajawali