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 Head of Internal Audit Unit


Saut Parulian Stanley Napitupulu

Since June 22, 2018, the Company’s Internal Audit Unit was headed by Mr. Saut P.S Napitupulu. He was approinted 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. 050-OJK/MNC-CS/INT/VII/2018 dated July 6, 2018.

Mr. Saut Parulian Stanley Napitupulu, an Indonesian citizen, who was born in 1973. He joined the Company on August 4, 2014 until now as Head of Internal Audit at PT Rajawali Citra Televisi Indonesia, on June 22, 2018 - currently as Head of MNC Tbk. He worked his career at PT. Financial Multi Finance in September 2008 - until July 2014 as Audit Manager, then in August 2006 - July 2008 as Head of Internal Audit of PT. Setia Jaya Mobilindo (AUTO 2000 Depok). He graduated as a Bachelor Degree in Pakuan University with a concentration in Accounting and holds a Bachelor in Economics in Accounting (SE).

Internal Audit Structure And Position


The internal audit position structure is as follows:

  • Internal Audit Unit Headed by the Head of Internal Audit / Chief Audit Executive (CAE).
  • The CAE is appointed and dismissed by the President Director with the approval of the Board of Commissioners.
  • The CAE is responsible to the President Director and administratively responsible to the Director of the Group Policies and Human Resources.
  • 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


Based on the Company’s Internal Audit Charter approved by the Board of Commissioners and Board of Directors, the duties and responsibilities of the Internal Audit Unit are as follows:

  • To develop and implement annual internal audit plans.
  • To test and evaluate the implementation of internal control systems and risk management in accordance with corporate policies.
  • To perform inspection and assessment of the effi ciency and effectiveness of fi nance, accounting, operations, human resources, marketing, information technology, and other activities.
  • To examine compliance with relevant laws and regulations.
  • To provide suggestions for improvements and objective information on the audited activities at all management levels.
  • To prepare and submit audit reports to the Director and the Board of Commissioners.
  • To monitor, analyze and report on the improvements suggested.
  • To work closely with the Audit Committee and support it in performing its tasks.
  • To develop programs for evaluating the quality of Internal Audit
  • To conduct special investigations where necessary.
     

Internal Audit Unit Authority


Authority of the Internal Audit Unit:

  • 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.
     

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.