Internal Audit and Internal Control

The Internal Audit Unit (IAU) is a work unit in the Emiten or Public Company that runs the internal audit function. In 2009, IAU’s duties and responsibilities were being adjusted as required by the Ruling of Bapepam-LK No.IX.I.7, Attachment of the Decision of Bapepam Chairman-LK No.Kep-496/BL/2008, dated 28 November 2008, on  the Establishment of the Charter and Guidelines for Preparation of the Internal Audit Unit.

IAU assists Management in managing the company and in developing a systematic and orderly approach in carrying out the tasks of monitoring and evaluation of risk management, control and implementation of corporate governance processes.

Internal Audit Charter

In support of its operation, IAU has been equipped with the Charter of Internal Audit (Internal Audit Charter) as the basic guidelines governing its status, authority and responsibilities, and the methods of work of internal auditors in performing their duties to achieve an effective internal control system in the Company. 

The Internal Audit Charter is part of the essential completeness of GCG policy relating to the application of the principle of accountability, independence and fairness in financial reporting. The Charter of Internal Audit (Internal Audit Charter) was crafted based on the Decree of the Board of Directors No.003/BOD/CA-KF/VIII/2009 dated 14 August 2009.

Tasks and responsibilities of the Internal Audit Unit

Tasks and responsibilities of UAI, in accordance with the Charter of Internal Audit including:

  1. Assisting the Board of Directors, Board of Commissioners and/or the Audit Committee in the implementation of Good Corporate Governance
  2. Developing and implementing an annual Internal Audit work plan based on risk analysis (risk-based audit)
  3. Testing and evaluating the implementation of internal control and risk management system in accordance with company policy
  4. Suggesting improvements and disseminating objective information about activities examined at all levels of management
  5. Creating an audit report and submitting the report to the President Director and the Board of Commissioners and/or the Audit Committee
  6. Monitoring, analyzing and reporting on the implementation of follow-up (corrective action) improvements that have been suggested;
  7. Working closely with the Audit Committee in the implementation of duties and responsibilities of the Audit Committee
  8. Coordinating with the Internal Audit Unit within the Company group

Structure and position of the UAI 

Pursuant to the Internal Audit Charter, the structure and position of the UAI is as follows:

  1. The Internal Audit Unit is headed by the Head of UAI, who is directly responsible to the President Director of the Company.
  2. The Head of UAI is appointed and may be dismissed by the President Director, subject to the approval of the Board of Commissioners.
  3. The President Director may dismiss the Head of UAI after obtaining prior approval of the Board of Commissioners, in the event that the Head of UAI has not fulfilled the terms of his appointment as stipulated in applicable rules and regulations or if his performance is considered to be less than satisfactory.
  4. The auditors and the entire Internal Audit Unit are directly responsible to the Head of UAI.

Internal Audit Unit Organizational Structure

In performing assigned duties, the IAU is led by Head of Internal Audit Unit, assisted by the Deputy Director and supported by the Manager, Supervisor and other Officers.

Internal Control System

Kalbe has established a dedicated Corporate Audit and Risk Advisory Unit. The Corporate Audit and Risk Advisory (CARA) Unit is responsible for facilitating improvement efforts on the Company’s risk identification capabilities and promoting an integrated risk management development and implementation strategy. This is implemented through consultation and evaluation, ensuring that every working unit can identify its respective major risk factors and implement applicable policies to mitigate these risks.