Internal Control Unit

Vision

Become a professional strategic partner for management's interests in achieving Company goals.
 

Mission

1. Helping organizations achieve their goals by providing assurance & consulting  that is independent and objective and provides added value.
2. Evaluate the effectiveness of internal control, risk management and governance processes through the implementation of Risk Based Audit.
3. Manage internal audit activities effectively and efficiently (operational excellence).
4. Develop Auditor competency and intensify  the use of information technology.
5. Increasing the synergy of internal audit and external audit functions.

Audit Scope

The  scope  of  internal audit's  work covers all areas of the Company's operations in accordance with applicable governance to determine the adequacy of the quality of internal control, implementation of   risk management, and governance processes in order to help the organization achieve its goals.

SPI Representative Offices in 11 Work Areas

• Head of SPI I: in Medan
• Kaper SPI II: in Padang
• Head of SPI Ill: in Palembang
• Head of SPI IV: in Jakarta
• Kaper SPI V  : in Bandung
• Head of SPI VI: in Semarang
• Head of SPI VII: in Surabaya
• Head of SPI VIII: in Denpasar
• Head of SPI IX: in Banjarbaru
• Kaper SPI X  : in Makassar
• Head of SPI XI: in Jayapura

PT Pos Indonesia (Persero) as a State-Owned Enterprise (BUMN) must be able to account for all its activities and business results to shareholders, all employees, customers and other stakeholders.

Management is required to manage the company well through implementing the principles of Good Corporate Governance, risk management and implementing an internal control system to present financial/activity reports that are informative, reliable and trustworthy.

Management's accountability and responsibility to stakeholders must of course be assessed and evaluated, both from the aspects of compliance with regulations, efficiency and effectiveness.

To achieve this goal, the Internal Supervision Unit (SPI) of PT Pos Indonesia (Persero) as the functional unit responsible to the President Director is required to play an optimal role in assisting the President Director in carrying out the supervisory function.

SPI must be able to provide input and recommendations regarding weaknesses in the internal control system in operational and financial implementation, both regarding regulatory compliance, assessing the efficiency and effectiveness of activities of all organizational lines within the company. In carrying out these duties and functions, SPI is required to always improve its competence and carry out its duties and functions professionally, objectively, independently and uphold the code of ethics and audit standards.

In order for SPI to run in accordance with the vision, mission and objectives of its formation, an Internal Audit Charter is needed, so that a common understanding of the duties, functions and authority of SPI is achieved by the Directors, Commissioners and all levels of Company management. On the other hand, the existence and implementation of SPI's duties can be accepted and supported by all work units within the Company, as well as being a guideline for all SPI internal auditors in carrying out their duties and functions.
 

Purpose and objectives

1. The Internal Audit Charter is intended to provide a common understanding of the duties, functions and authority of SPI, by the Directors, Commissioners and all levels of Company management.
2. The purpose of preparing the Internal Audit Charter is as a guideline for Internal Auditors so that they can carry out their duties professionally, so that they can produce Audit Reports that meet the established standards and are of high quality to support the Company's activities.
    

Job and function

1. Prepare and implement the Annual Audit Work Plan and Budget.
2. Report Work Realization and Annual Audit Budget periodically every quarter to the President Director and Board of Commissioners.
3. Test and evaluate the implementation of the internal control and risk management system in accordance with company policy.
4. Provide recommendations and objective information about Auditee activities at all levels of management to improve company performance.
5. Providing consultations to internal company parties to provide added value and improvements to the quality of internal control, risk management and corporate governance.
6. Carrying out in-depth (special) audits if necessary and/or at the request of Management in the form of audits with specific objectives and/or investigative audits.
7. Prepare and report audit results to the President Director and/or heads of related work units (auditees).
8. Report immediately any audit findings (Management Letter) that are expected to disrupt the continuity of the company's business.
9. Carry out audit follow-up monitoring and report every quarter to the President Director and Board of Commissioners.
10. Develop written policies and procedures as guidelines for Auditors in carrying out their duties in accordance with standards and codes of ethics.
11. Carry out continuing professional education in accordance with the Auditor's competency.
12. Supervise, inspect and evaluate the reliability, effectiveness and efficiency of the company's internal control system in work units, including the implementation of special duties from the President Director. (supervision operational system).
13. In carrying out its duties and functions, SPI collaborates with the Audit Committee.

SPI Authority and Responsibilities

1. Full, free and unlimited access to data resources which include documents, records, personal and physical assets of the company including Information Technology-based transaction data resources in all Company work units related to the implementation of audits and consultations.
2. Determine the work plan and budget as well as targets and SPI audit program (RKAP).
3. Using the services of external parties to help carry out audits as well as with the aim of transferring knowledge.
4. Communicate and coordinate directly with the President Director and Audit Committee.
5. Communicate with external parties (Regulators, External Auditors) and participate in SPI Communication Association and Forum activities.
6. Have freedom in determining the scope methods, methods, techniques and audit approaches that will be carried out.
7. Make BAP (Inspection Minutes) for auditees in carrying out investigative audits.
8. Request clarification regarding recommendations from audit results that are not followed up according to the agreed time limit and then the relevant officials are required to provide justifiable reasons.
9. Propose to the President Director the imposition of sanctions on relevant officials who do not carry out follow-up actions on recommendations from audit results, in accordance with the provisions applicable in the Company
10. Provide assessments and recommendations on audit results and monitor follow-up actions to ensure that these recommendations have been implemented appropriately.
11. Providing assessments, consultations, information and recommendations regarding the company's business processes in accordance with the Code of Ethics and Audit Standards.

Requirements for Professionalism of Auditors and Internal Audit Units

a.    Independence Standards

Units and Internal Auditors must be independent of the activities they audit.

1)    SPI Units

The Internal Audit Unit (SPI) can be said to be independent if the audit tasks are carried out freely and objectively.

SPI must be independent organizationally and personally as well as independent in attitude and appearance, so that auditors can provide important opinions that are impartial and prejudiced in the implementation of their duties and audit reporting.

2)    Organizational status

SPI is directly responsible to the President Director. All levels within the Company are obliged to support and cooperate with SPI to enable adequate auditor responsibilities to be achieved.

3)    Objectivity

This is an independent mental attitude that SPI must have and maintain in conducting audits.

Internal auditors must not set aside objectivity considerations in carrying out audit duties because of other considerations.

Objectivity requires internal auditors to be honest with themselves, confident in the reliability of their work, trustworthy and free from influence from outside parties.

Therefore, in carrying out audit duties, Internal Auditors must make decisions professionally, freely and objectively.

To maintain objectivity, Internal auditors must avoid audits in previous work units within the scope of work for which they are responsible for a minimum of 1 (one) year.

4)    Maintaining Integrity, namely not using the information obtained for personal interests or profits or other things that can reasonably be suspected of being misused either by oneself or by other unauthorized parties.

b. Ability and Expertise Standards

Internal audits must be conducted with sufficient professional skill and thorough care.

1)    Professional skills are the responsibility of the SPI unit and individual Internal Auditors. Head of SPI only assigns audit activities to staff who collectively have sufficient professional skills to carry out the audit task.

2)    The SPI unit's responsibilities regarding professional skills include the following:

a)    Fulfill the need for SPI auditors to have individuals who have the knowledge, skills and scientific discipline required to carry out their audit duties.

b)    The assignment of internal auditors must meet certain technical capability requirements collectively based on the type, extent and complexity of the audit object.

c)      The need to maintain audit technical skills through continuous education and training in the form of training, seminars and so on, so that you can keep abreast of and understand the latest developments in audit standards, procedures and techniques as well as the company's business world.

d)    Supervision of the implementation of internal audits on an ongoing basis starting from planning, program audits, audit implementation, reporting and follow-up monitoring. Supervision must be carried out carefully, documented.

3)    Internal Auditor responsibilities regarding professional skills and accuracy include:

a)    Compliance with audit standards and internal audit code of ethics.

b)    Mastery of certain knowledge, skills and disciplines related to audit tasks, including the ability to apply audit standards, procedures and techniques as well as sound business practices.

c)      Ability to communicate both verbally and in writing effectively and well with the auditee and company management.

d)    The requirement to maintain a level of accuracy and vigilance against possible irregularities, inaccuracies, ineffectiveness, weaknesses in internal control by carrying out adequate and accountable testing and verification.

e)    Requirement to use professional skill and care taking into account:

(1)    The scope of audit work required to achieve the specified audit objectives

(2)    The degree of materiality or significance of the issue.

(3)    The level of reliability and effectiveness of internal control

(4)    Audit costs are compared with the benefits obtained.

(5)    Existing operating standards are acceptable and complied with.

(6)    The four-eye principle, namely carrying out audits of high-risk objects, must be carried out by a minimum of 2 (two) auditors.

c. Auditor Knowledge Requirements

Internal audits must be carried out professionally so that auditors must have standards of knowledge and technical competence so that the audit can be carried out adequately and thoroughly.

Internal auditors must have adequate knowledge and skills regarding:

1)    Company financial/accounting management and legal aspects in the audit process.

2)    Internal business processes, regulations, mechanisms and procedures that exist at the audit object that are required to conduct the audit.

3)    Required data, how to obtain the data, either using information technology access or manually, and being able to carry out adequate data processing in order to obtain audit evidence to draw conclusions.

4)    Computer operation as a form of information technology and data processing.

5)    Risk-based control and audit techniques to support the implementation of audit activities which are realized by preparing an audit program based on the interpretation of risks and exposures that impact the company.

6)    Implementation of evaluations and contributing to the risk management process, control over management (governance) using a systematic and structured approach.

7)    The method of communicating findings to the auditee leadership in the form of a focused and coherent presentation and in preparing the audit report must be in accordance with the established audit report standards.

8)    Internal auditors must have Qualified Internal Auditor (QIA) certification.