Internal Audit Unit
Profile of the Internal Audit Unit Head
Since January 14, 2022, Fauzi Badjened has been heading the Company’s Internal Audit Unit. He was appointed based on the Decision of the board of Director’s No. 003/MNC/HR-SK/1/2022 as reported to the Chief Executive Officer of OJK Capital Market Supervisior through letter No. 006-OJK/MNC-CS/INT/I/2022 dated January 20, 2022.
An Indonesian citizen who was born in 1987. He joined at MNC Group as the Internal Auditor at PT Global Mediacom Tbk from June 2014 until June 2018 and in November 2016 was selected as the Best Employee Award for Best Supervisor of MNC Group – PT Global Mediacom Tbk. Then between July 2018 to January 2022 as Head of Internal Audit PT Global Informasi Bermutu and from May 2019 until January 2022 as Head of Internal Audit PT MNC Studios International Tbk. Subsequently, on January 2022, serves as Head of Internal Audit of PT Rajawali Citra Televisi Indonesia.
He worked his career at BDO Indonesia’s Public Accounting Firm in 2010 to 2011 as an External Auditor in the Assurance Division and subsequently at Ernst & Young Indonesia’s Public Accounting Firm in 2011 to 2014 as External Auditor at the Audit Assurance Business Services (AABS). He graduated with a Bachelor degree from Trisakti University, Jakarta majoring in Accounting and a Bachelor of Economics (SE) degree.
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:
- To develop and implement annual internal audit plans.
- To examine and evaluate the implementation of internal control and risk management system in accordance with the Company’s policies.
- To examine and assess the efficiency and effectiveness of finance, accounting, operations, human resources, marketing, information technology and other related activities.
- To examine compliance with related rules and regulations.
- To provide recommendation for improvements and objective information on the audited activities at all management levels.
- To prepare reports on audit results and submit them to both President Director and Board of Commissioners.
- To monitor, analyze and report on the follow-up actions based on recommended improvements.
- To work closely and support the Audit Committee in the performance of its tasks.
- To develop programs for evaluating the quality of Internal Audit.
- 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 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.
- 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.
- The Internal Audit Unit organized and conducted the Audit Committee Meeting in accordance with necessary procedures.
- The Internal Audit Unit has continuously evaluated the quality of Internal Audit.
- 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:
Internal auditors must have the integrity to express the opinions honestly and wisely as a basis for trust and judgments in the decisions.
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.
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.
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.
- 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
(2.34 MB) MNC_Internal Audit Charter