INTERNAL AUDIT UNIT

The Company established the Internal Audit Unit in accordance with regulations issued by the Financial Service Authority (OJK) No. 56/POJK.04/2015, dated December 29, 2015 regarding Establishment and Implementation Guidelines for Internal Audit Charter. The Internal Audit Unit’s main duty is to provide independent and objective review, assurance and consultancy to enhance the value and improve the Company’s operations through a systematic approach, by evaluating and improving the effectiveness of internal control systems, risk management and the GCG processes of the Company and all its business units.

Profile of the Internal Audit Head

Mr. Harangan Pokki Pangaribuan heads the Company’s Internal Audit Unit since June 22, 2018. He was appointed through Board of Director’s Resolution No. 673/SK/HT-MCOM/VI/18 and was reported to the Chief Executive of the Capital Market Supervisory of the Financial Services Authority (OJK) based on letter No. 068-OJK/MCOM-CS/INT/VII/2018 dated July 6, 2018.

Harangan Pokki Pangaribuan

An Indonesia citizen who was born in 1980. He joined the Company as the Head of Fraud and Prevention of PT Global Mediacom Tbk from July 23, 2014 to May 31, 2015. Then between June 1,2015 to November 20, 2015, as Head of Internal Audit MNCTV and Coordinator Non 3 TV and from November 23, 2015 until July 2018 as Head of Internal Audit PT Media Nusantara Citra Tbk. On July 2018 until now as Head of Internal Audit PT Global Mediacom Tbk. His career began with Public Accounting Firm Ernst & Young Indonesia in October 2003 to 2006 as External Auditor in the Audit Assurance Business Service (AABS), then in 2006 to July 2014 he took on the role as Forensic Auditor at Fraud Investigation & Dispute Services (FIDS) at Ernst & Young Indonesia. He graduated with a Bachelor Degree in Economics and Accounting (SE,AK) from Padjajaran University and is a Certified Fraud Examiner (CFE) and has Certification in Audit Committee Practices (CACP).

The Structure of the Internal Audit Unit

  • The Head of Internal Audit Unit / Chief Audit Executive (CAE) leads the Internal Audit Unit.
  • The President Director appoints and dismisses CAE with approval from the Board of Commissioners.
  • CAE is accountable to the President Director and administratively accountable to the Director of Group Governance & Organization Development.
  • CAE works closely with Audit Committee Members through quarterly Audit Committee meetings to report both completed and in-process auditing.

Duties and Responsibilities of the Internal Audit Unit

In accordance with the Company’s Internal Audit Unit Charter, the duties and responsibilities of the Internal Audit Unit are as follows:

  1. To develop and implement annual internal audit plans.
  2. To examine and evaluate the implementation of internal control and risk management system in accordance with the Company’s policies.
  3. To examine and assess the efficiency and effectiveness of finance, accounting, operations, human resources, marketing, information technology and other related activities.
  4. To examine compliance with related rules and regulations.
  5. To provide recommendation for improvements and objective information on the audited activities at all management levels.
  6. To prepare reports on audit results and submit them to both President Director and Board of Commissioners.
  7. To monitor, analyze and report on the follow-up actions based on recommended improvements.
  8. To work closely and support the Audit Committee in the performance of its tasks.
  9. To develop programs for evaluating the quality of Internal Audit.
  10. To conduct special investigation, if necessary.

Internal Audit Authority

  • Access all of the Company’s relevant information related to the tasks and functions of Internal Audit.
  • Communicate directly with the Directors, the Board of Commissioners and/or the Audit Committee.
  • Conduct periodic and ad hoc meetings with the Directors, the Board of Commissioners, and/or the Audit Committee.
  • Coordinate its activities with the external auditors’ activities.
  • Establish audit policies and procedures, audit programs, methods, and approaches to be performed.

The Implementation of Internal Audit Unit Activities

The Internal Audit implemented the following activities:

  1. The Internal Audit Unit developed the annual internal audit plan using a risk-based audit approach.
  2. During the auditing process, the Internal Audit Unit examined and evaluated the implementation of internal control and risk management system in accordance with the Company’s policies and submitted the reports to the President Director and Board of Commissioners.
  3. The Internal Audit Unit examined and assessed the efficiency and effectiveness of finance, accounting, operations, human resources, marketing, information technology and other related activities, as well as compliance with regulations regarding the code of professional conduct which refers to the International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors, including integrity, objectivity, confidentiality and competence.
  4. The Internal Audit Unit examined compliance to related rules and regulations.
  5. The Internal Audit Unit provided recommendations for improvements and objective information on audited activities at all management levels.
  6. Internal Audit Unit prepared reports on the audit’s result on completed audit assignment and submitted them to both President Director and Board of Commissioners.
  7. The Internal Audit Unit supervised and monitored implementation of the follow-up action plans related to the findings to ensure timely completion; the unit also prepared monthly reports to the Management.
  8. The Internal Audit Unit organized and conducted the Audit Committee Meeting in accordance with necessary procedures.
  9. The Internal Audit Unit has continuously evaluated the quality of Internal Audit.
  10. The Internal Audit Unit conducted special investigations and submitted the report to the President Director and Board of Commissioners.

Internal Audit Unit Code of Ethics

The Internal Audit Code of Ethics refers to the International Standards for Professional Practice of Internal Auditing from The Institute of Internal Auditors, as follows:

INTEGRITY
Internal auditors must have the integrity to express the opinions honestly and wisely as a basis for trust and judgments in the decisions.

OBJECTIVITY
Internal auditors must be able to show their professional objectivity in gathering, evaluating and communicating information about the activities or processes obtained in the examination/research conducted based on evidence or facts that can be accounted for, and not affected by factors of subjectivity or personal interests.

CONFIDENTIALITY
Internal auditors respect the value and ownership of information and must maintain the confidentiality of information obtained in accordance with applicable laws and regulations. The information cannot be disclosed to any parties without the authority / involvement unless there is a legal or professional obligation that requires it.

COMPETENCE
Internal auditors must have the knowledge, expertise, communication skills and experience needed to carry out Internal Audit tasks.

Internal Auditor Requirements in The Internal Audit Unit

  • Have integrity and professional behavior, independent, honest and objective in carrying out its task.
  • Have the technical knowledge and experience concerning the auditing and other disciplines relevant to the task field.
  • Have knowledge of the legislation in the Capital Market and other related legislations.
  • Have the ability to interact and communicate both orally and in writing effectively.
  • Comply with professional standards issued by the Internal Audit association.
  • Comply with Internal Audit Code of Ethics.
  • Maintain the confidentiality of Company’s information and/or data related to performance of duties and responsibilities of Internal Audit unless require by legislation or a determination/decision of the law court.
  • Understand the principles of good corporate governance and risk management.
  • Willing to increase knowledge, expertise and professionalism skills continuously.

Internal Audit Unit Accountability

  • Head of Internal Audit Unit is responsible to the President Director in the duties.
  • Internal Audit is responsible to the Head of Internal Audit.
  • Each Auditor must be responsible for the results of audit report in accordance with implementation of duties, responsibilities and authorities.

Prohibition of Concurrent Duties and Position

Internal auditors are prohibited from carrying out concurrent duties and positions with Company’s operational activities, both in Company and subsidiaries.

Others

  • Internal Audit Charter is determined by the Directors with the approval of the Board of Commissioners.
  • Every appointment, replacement, or dismissal of Head of Internal Audit Unit is notified immediately to the Financial Services Authority.

Internal Audit Charter

Download here: Internal Audit Charter MCOM 2023