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 29 December 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 Unit Head


Saut Parulian Stanley Napitupulu

In 2018, the Company’s Internal Audit Unit was headed by Mr. Saut Parulian Stanley Napitupulu. He was appointed through Board of Director’s Resolution No. 673/SK/HT-MCOM/VI/2018 and was reported the to the Chief Executive of the Capital Market Supervisory of the Financial Services Authority (OJK) based on letter Ref 050-OJK/MNC-CS/INT/VII/2018 dated 6 July 2018.

Mr. Saut Parulian Stanley Napitupulu, an Indonesian citizen born in 1973, joined the Company as the Head fo Fraud and Prevention of Global Mediacom Tbk from 4 August 2014 until now as a Head of Internal Audit at PT Rajawali Citra Televisi Indonesia, at 22 June 2018 – until now as a Head of MNC Tbk. His career began at PT Finansial Multi Finance on September 2008 – until Juli 2014 as a Manager Auditor, then at August 2006 – Juli 2008 as a Head of Internal Audit PT Setia Jaya Mobilindo (AUTO 2000 Depok). He graduated with a Bachelor Degree in Accounting (SE) from Pakuan University.

Structure and Positioning of the Internal Audit Unit


The structure of the Internal Audit Unit is as follows:

  • The Internal Audit Unit is 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 accountable to the President Director and administratively, 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:

  • To develop and implement the annual internal audit plan.
  • To test and evaluate implementation of the internal control system and risk management in accordance with the Company’s policies.
  • To inspect and assess the efficiency and effectiveness of finance, accounting, operations, human resoures, marketing, information technology and other related activities.
  • To verify compliance with associated rules and regulations.
  • To recommend improvements and provide objective information to all management levels regarding the activities under audit.
  • To prepare reports on the audit results and submit those to the President Director and Board of Commissioners.
  • To monitor, analyse and report on the follow-up actions taken on improvements recommended.
  • To collaborate with and support the Audit Committee in performing its duties.
  • To develop programs to evaluate the quality of the Internal Audit.
  • To conduct special investigations when necessary.
     

The Implementation of Internal Audit Unit Activities


The Internal Audit implemented the following activites:

  • The Internal Audit Unit developed the annual internal audit plan using a risk-based audit approach.
  • 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.
  • 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. In 2017, the Internal Audit Unit implemented the auditing process in accordance with the 2017 audit plan, which included all business units. The total completed assignment accounted for 31 audits, and consisted of 20 public examinations (65%) and 11 special examinations (35%).
  • The Internal Audit Unit examined compliance to related rules and regulations.
  • The Internal Audit Unit provided recommendations for improvements and objective information on audited activities at all management levels.
  • 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.
  • 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.