Corporate Governance

Structure of Internal Audit

Internal Audit Unit

Internal Unit Audit is governing organ that functions to perform audit function and provide independent, objective, reasonable, and professional consultation. In the company structure, Internal Audit Unit is below the President Director and required to directly report to the president Director. Head of Internal Audit Unit is appointed by the President Director along with the approval from Board of Commissioners. During executing its daily duties and responsibilities, Internal Audit Unit works according to guidance and supervisory of Audit Committee.

The execution of duties and responsibilities of Internal Audit Unit refers to Annual Audit Plan (RKAT). RKAT consists of work target by taking into account the risk of every audited aspect. Internal audit system with risk assessment based is aimed for ensuring the obedience of operating standards and prevailing legislations. In performing audit, Internal Audit Unit assesses and evaluates the operational and financial activities of the Company as well as the subsidiaries by referring to the prevailing legislations.

Internal Audit Unit Structure

Duties and Responsibilities

According to Internal Audit Charter, duties and responsibilities of Internal Audit Unit covers:

  1. Drawing up and executing annual Internal Audit.
  2. Examining and evaluating the execution and internal control and also risk management system in accordance to the Company policy.
  3. Performing examination and assessment regarding efficiency and effectiveness in finance, accounting, operational, human resources, marketing, information technology, and other activities.
  4. Providing improvement suggestions and objective information related to examined activities in every management level.
  5. Drawing up report on audit result and presenting the report to the President Director and Audit Committee.
  6. Monitoring, analysing, and reporting further improvement that has been suggested.
  7. Cooperating with Audit Committee and External Auditor.
  8. Performing special examination if needed.

Internal Audit Charter

Internal Audit Unit has Internal Audit Charter as the manual in work implementation. Internal Audit Charter stipulates several matters such as organizational structure and its positions, duties and responsibilities, authority and code of ethics for the internal auditor, internal audit standards, and auditor criteria and requirement. Internal Audit Charter stipulated through Board of Directors Decision on 14 May 2012 and was approved by the Board of Commissioners according to Circular Decision of Company Board of Commissioners as the replacement of Board of Commissioners on 14 May 2012.

Internal Audit Activities Report

As mentioned on duties and responsibilities of Audit Committee, Audit Committee is responsible for providing professional and independent opinion to the Board of Commissioners regarding provided report and matters from Board of Directors to Board of Commissioners and other duties related to Commissioners duties. This has been held through regular meeting of Audit Committee PT Tobabara Sejahtra Tbk.

Yearly Audit Plan

In the plan of work program execution, the scope of Audit Committee consist of:

  1. Evaluating the Company financial statement and other financial information that will be released by the Company.
  2. Evaluating the effectiveness of Internal Audit function execution, as well as studying and examining of design and effectiveness in performing audit in relation to the organization of financial information and audit execution for the subsidiaries.
  3. Monitoring and evaluating the audit execution by Public Office Accountant (KAP).
  4. Performing audit examination which is centred on alignment between mining plan and coal price and then continuing the audit examination in human resources including the costs related to the Company operation in particular production cost such as the use of fuel and land acquisition.
  5. Evaluating the work performance of subsidiaries.
  6. Reviewing the obedience of the Company regulations.
  7. Reporting various Company risks which might be potential in actual situation.
  8. Other activities assigned by Commissioners.