Internal Control System
The activities of the Internal Audit Division in 2012 are focused on evaluating FORU’s performance in handling problems of systems and procedures. The audit plan that had been developed is for the purpose of managing and controlling any risks that have occurred so that the negative impacts can be reduced to the minimum. Each internal audit finding is reviewed and discussed in the Board of Directors meeting and followed up thoroughly to ensure negative findings will not re-occur and follow up on positive findings.
Throughout fiscal year 2012, the Internal Audit Division did not find things that can pose a significant risk to the company’s operations. The description of the Internal Audit Report for 2012 is as follows:
Operational Audit: audit of internal financial statements quarter I, II, II and year 2012
Compliance Audit: audit of Standard Operating Procedure (SOP) in the division of Finance, Accounting, Human Capital Development, Corporate and Business Unit
The Internal Audit Division was established in 2010 to ensure that the implementation of GCG has been well implemented in order to achieve company objectives. In the organizational structure, the Internal Audit is independent and responsible to report its activities to the Board of Directors.
Internal Audit Division is in charge to ensure that the implementation of the operations carried out in conformity with generally accepted corporate operations, operational audits and compliance audits to ensure that operational standards are adhered to by all operations sector, as well as investigative audit if necessary.
Composition of Internal Audit
As stipulated in the Decree of Bapepam-LK No IX.I.7 on the Establishment and Development Guidelines for Internal Audit Charter (Decree of the Chairman of Bapepam-LK No. Kep-496/BL/2008 dated November 28, 2008), the President Director has appointed M.M Lanasastri Setiadi as Head of Internal Audit Unit based on the approval from the Board of Commissioners on July 26, 2011. Under these provisions, the company also has approved and appoints members of the Internal Audit Division, with the following composition: Chairman : M.M Lanasastri Setiadi
Internal Audit Charter
Internal Audit plays the role in the process of ensuring the passage of an audit of the company’s operational systems based on Internal Audit Charter that was made in 2011. Internal Audit Charter was made in accordance with the provisions of Bapepam-LK No. IX.I.7 on the Establishment and Development Guidelines for Internal Audit Charter (Decree of Chairman of Bapepam-LK No. Kep-496/BL/2008 dated November 28, 2008). Internal Audit Charter is established by the Board of Directors and approved by the Board of Commissioners of the Company on July 26, 2011. Internal Audit Charter guidelines that govern the Internal Audit Unit has been created in the guide book and posted on the FORU’s website.
The external auditor is appointed to conduct financial audits as well as to provide an independent and objective opinion about the fairness, and appropriateness of company’s financial statements with the Indonesia Financial Accounting Standards and prevailing legislation. In needs of the fiscal year 2012 audit purposes, the Board of Commissioners is assisted by the Audit Committee and has appointed directly the Public Accounting Firm of Kosasih, Nurdiyaman, Tjahjo, & Rekan to be an external auditor for the reporting of financial performance for the fiscal year 2012. 2012 is the second year for the appointed external auditor in auditing the annual financial statements of the Company. The audit results of fiscal year 2012 stated that the company’s financial statements are fairly stated based on generally accepted accounting principles in Indonesia.