This Charter is issued under and shall be governed by :
- Regulation of Financial Services Authority or Otoritas Jasa Keuangan (OJK) No.56/POJK.04/2015 dated December 23, 2015 on the Establishment and Guidelines for lnternal Audit Charter
- Listing Regulation No. I-A The Indonesia Stock Exchange No. Kep-00001/BEI/01-2014 dated January 20, 2014 regarding Listing of Shares (Stock) and Equity-Type Securities Other Than Stock Issued by the Listed Company
This Charter provides a framework for the conduct of internal audit in PT Selamat Sempurna Tbk (the Company) and has been approved by the Board of Commissioners and Board of Directors.
This Charter primarily aims to define and establish:
- The Role of the Internal Audit Division of the Company.
- The objectives and scope of the Internal Audit Division to the Company.
- The Internal Audit Division’s position within the Company, its access to various records, departments and activities, its responsibility and accountability
It is imperative that the Charter be observed and implemented with the highest degree of integrity, diligence, and consistency.
In consideration of the foregoing, the Board of Commissioners and Board of Directors of the Company hereby stipulates the Company’s Internal Audit Charter as defined hereunder.
Internal Auditing is an independent and objective assurance and consultation activity designed to add value and improve an organization's operations, by utilizing a systematic methodology for evaluating and improving the effectiveness of risk management, control, and governance processes
- The Internal Audit Division is led by the Head of Internal Audit;
- The Head of Internal Audit Division is appointed by the President Director with the approval of the Board of Commissioners;
- The President Director can dismiss the Head of Internal Audit Division after obtaining approval from the Board of Commissioners, if the Head of the Internal Audit Division does not meet the requirements as stipulated by regulation and or failed to do his/her assigned tasks;
- The Head of Internal Audit Division shall report administratively to the President Director and functionally to the Board of Commissioners and Audit Committee;
- Auditors within the Internal Audit Division are responsible and reports to the Head of Internal Audit Division.
DUTY AND RESPONSIBILITY
- Compiling and performing annual Internal Audit plan.
- Reviewing and evaluating the operation of internal control and risk management in accordance to the Company’s policy;
- Performing audit and assessing the efficiency and effectiveness in the area of finance, accounting, operation, human resource, marketing, information technology and other activities;
- Monitoring, analyzing, and reporting the progress of recommended action performance;
- Provide suggestions for improvement and objective information regarding activities that are investigated within all levels of the management;
- Prepare Audit Report for submission to the President Director, Board of Commissioners and/or Audit Committee;
- Ensure that management implements the agreed improvements on a timely basis, performing such follow-up work as Internal Audit deems necessary to ensure the improvements are adequate, effective and timely;
- Test and evaluate the implementation of internal control and risk management systems in accordance with company policy;
- Work together with Audit Committee;
- Developing program to evaluate the quality of internal audit action which is performed by it;
- Performing special audit, if necessary.
The Head of Internal Audit and audit staff engaged to undertake special review or audit, are authorized to:
- Have free and unrestricted access to all departments, records, books, accounts, information, properties and personnel, relevant to the performance of audit function at anytime;
- Obtain the necessary assistance of personnel in the department where audit team performs audits.
- Obtain assistance of specialists, professionals and others where considered necessary from within or outside the Company.
- Communicate directly with the Board of Directors, Board of Commissioners and/or Audit Committee and member of the Board of Directors, Board of Commissioners, and/or Audit Committee;
- Conduct regular meetings with the Board of Directors, Board of Commissioners, and/or Audit Committee;
- Coordinate their activities with the activities of external auditors.
CODE OF ETHICS
Internal auditors are expected to apply and uphold the following principles:
The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
- Perform all duties with a firm principle of honesty and responsibility;
- Understand the regulations and report according to said regulations;
- Prohibition of involvement in any activities that are against the law or involvement in any activities that discredit the internal audit or the company;
- Understand and contribute towards the company’s goals.
Internal auditors exhibit 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 unduly influenced by their own interests or by others in forming judgments.
- Must not do any activities or relationships that may affect judgment adversely. This includes activities or relationships that may create conflict against the company’s interest;
- Must not accept anything that may affect professional judgment;
- Must disclose all facts that have to be known, which if not disclosed, may cause a distortion in the report.
Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
- Maintain secrecy and exercise caution in using and processing information/data in the workplace
- Must not utilize the information for one’s own personal gains or other reasons that may go against the law.
Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.
- Work in the areas/services in which the individual has the appropriate knowledge, skills and experience;
- Perform the internal audit, referring to the auditing regulations that apply;
- Improve the skills, abilities and the quality of the services continuously.
REQUIREMENT FOR INTERNAL AUDITORS
- Possess high integrity and act professionally, independent, honest and objective in the conduct of its duties;
- Knowledgeable and experienced in audit techniques and other relevant disciplines required for his/her duties;
- Have knowledge in the laws and regulations in the field of capital markets and other relevant regulations;
- Have capability to interact and communicate effectively both verbally and in writing;
- Have to comply with professional standards issued by the Internal Audit Association;
- Comply with the Internal Audit Code of Ethics;
- Shall maintain the confidentiality of information and/or data related to company’s performance in the conduct of its duties and responsibilities except when required by law or demanded by a court decision;
- Understand the principles of Good Corporate Governance and management risks;
- Willing to increase the knowledge, skills and abilities on a continuing basis.
- Posses loyalty towards the company and should not consciously be involved in activities, which are deviate against or violate the law.
The Internal Audit Division shall comply with the Standard on International Audit Guidelines and Practices. Work of the Internal Audit Division and results of each audit shall be confidential to the Company and will not be disclosed to third parties, except to the external auditors, with the consent of the President Director.
Internal Audit Division, shall ensure:
- That all internal audit assignments are undertaken with due professional care;
- Audits are completed by suitably skilled experienced and competent auditors;
- Audit programs, working papers and reports are conducted and prepared in accordance with the required professional standards; and
- All staff to undertake necessary training to develop their professional skill.
PROHIBITED OF DUAL DUTIES AND POSITIONS
Auditors positioned in the Internal Audit Division are prohibited from doing dual duties and positions with the implementation of the Company’s operations in either the Company or its subsidiaries
- Appointment, replacement, or dismissal of the Head of Internal Audit Division must be immediately notified to the Financial Services Authority.
- This Charter will be evaluated regularly for consummation purposes (if needed).
- The original Internal Audit Charter in the Indonesian Language. If this Charter is made in another language version and there is inconsistency between the Indonesian language and such other language, then the Indonesian language version shall prevail.
Attachment Internal Audit Charter