April 30, 2019
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The Board of Commissioners formed several Committees under its supervision, one of them, the Audit Committee.

The Audit Committee is formed by and responsible to the Board of Commissioners to assist in ensuring the effectiveness of internal control system, financial reporting quality and effectiveness of the Internal Audit function including review the risks faced by the Company, and also compliance with the regulation. In carrying out its duties and responsibilities, the Audit Committee upholds the five GCG principles as described above, and acts professionally and independently for the benefit of the Company and stakeholders.

In order for the Audit Committee to be able to act efficiently and effectively, an Audit Committee was prepared and last updated and ratified by the Board of Commissioners on June 19, 2017 and published on the Companys website.

AUDIT COMMITTEE CHARTER

The Audit Committee Charter or Work Guidelines of Audit Committee was first prepared and approved by the Board of Commissioners on December 29, 2004. The Company has made several changes to the Audit Committee Charter on October 1, 2013 and August 13, 2015, in order to comply with the most recent regulatory changes.

The Company’s Audit Committee Charter contains:

  1. Introduction
  2. Purpose and Objectives
  3. Responsibilities
  4. Goal Tasks
  5. Authorities
  6. Work Programs
  7. Structure and Membership
  8. Meetings
  9. Reporting
  10. Closing

COMPOSITION OF AUDIT COMMITTEE MEMBERS

The Audit Committee must consist of at least three members, with one of them being an Independent Commissioner who concurrently serves as the Chairman of Audit Committee. Other member must be independent parties who is not an employee of the Company employees, and may not concurrently serve as member of other committees in the Company during the same period.

The composition of Audit Committee members in 2018 are as follows:

 

AUDIT COMMITTEE MEMBER PROFILE

I nyoman mastra / Chairman of audit Committee

His profile can be seen in the Board of Commissioners Profile section in this Annual Report.

 

INDEPENDENCY OF AUDIT COMMITTEE

All members of Audit Committee are independent and external parties, and appointed according to their ability and educational background, in compliance with the qualifications stipulated in Financial Services Authority Regulation No.55/ POJK.04/2015 concerning the Formation and Working Guidelines for Audit Committee, which includes among others, not having any affiliations with Board of Commissioners, Board of Directors and controlling shareholders of the Company.

AUDIT COMMITTEE DUTIES AND RESPONSIBILITIES

The duties and responsibilities of Audit Committee as stated in the Audit Committee Charter of PT AKR Corporindo Tbk, are as follows:

  1. Reviewing the financial information published by the Company such as financial statements, projections, and other reports relating to financial information;
  2. Reviewing adherence to legislations;
  3. Providing independent opinion to the Board of Commissioners on disagreements between management and accountants;
  4. Providing information to the Board of Commissioners related to the appointment of accountants based on their independence, scope of assignment and fee;
  5. Reviewing the audit conducted by the internal auditors and supervise follow up on the findings of internal auditor;
  6. Reviewing the implementation of risk management activities undertaken by management;
  7. Examining complaints related to the accounting and financial reporting process;
  8. Reviewing and providing advice to the Board of Commissioners related to potential conflicts of interest;
  9. Maintaining the confidentiality of documents, data and information;

AUDIT COMMITTEE AUTHORITY

In performing its duties, the Audit Committee has authority as follows:

  1. To access data, documents, and other information related to employees, funds, assets, and resources of the Company as required;
  2. To communicate directly with employees, including Board of Directors and internal audit and accounting related to their duties and responsibilities;
  3. To engage independent parties, other than members of Audit Committee, who may be required to assist the implementation of their duties, at Company’s expense. This authority requires the Board of Commissioners’ permission.
  4. To perform other authorities as assigned by the Board of Commissioners.

 

AUDIT COMMITTEE FUNCTIONS

The main functions of Audit Committee are as follows:

  1. Report results of risk management evaluation to the Board of Commissioners to address potential risks that may disrupt the ongoing business;
  2. Evaluate the performance of the Company and its subsidiaries on a regular basis (quarterly, semesterly, and annually) on target achievement, market conditions and trends, future performance predictions, and reporting findings and providing suggestions for improvement of the Board of Commissioners performance;
  3. Deliver reports from the Board of Directors in a professional and independent manner;
  4. Together with the Internal Audit, provide an assessment on documentation procedures and implementation by management that are suggested by the operational department to improve the financial transaction performance and reporting system;
  5. Discuss the development of business environment by identifying the potentials for Company’s performance development;
  6. Ensure that the Company’s financial reports are in accordance with adopted accounting standards;
  7. Ensure the internal control systems, financial reporting processes, and GCG implementation are functioning properly.

 

AUDIT COMMITTEE MEETINGS

The Audit Committee holds regular meetings at least 1 (one) time every three (3) months. In 2018, the Audit Committee held 6 meetings with the level of attendance as foll

Ada pun agenda rapat Komite Audit adalah sebagai beriku

 

AUDIT COMMITTEE ACTIVITY REPORT

The main function of Audit Committee is to assist the Board of Commissioners in fulfilling its supervisory duties. Therefore, in accordance with applicable regulations, the Audit Committee has duties and responsibilities, among others, to ensure the achievement of objectives:

  1. The Company’s financial information are presented fairly in accordance with Indonesian financial accounting standards;
  2. Providing independent opinion in the event of any disagreement between management and the Accountant for the services provided;
  3. Providing recommendations to the Board of Commissioners regarding the appointment of Accountant based on independence, assignment scope, and remuneration;
  4. The Company’s internal control structure has been effectively implemented, including review the violation relating to accounting and financial reporting processes;
  5. Review the internal and external audit to be conducted in accordance with applicable auditing standards and supervise the follow-up conducted by the Board of Directors; and
  6. The Company complies with Capital Market laws and regulations, and other laws and regulations related to the Company’s activities.

 

During 2018, the Audit Committee carried out the following activities:

The Audit Committee conducted oversight duties through periodic meetings with related parties such as independent auditor, internal audit unit, and management. The meeting discussions covered the financial reporting business processes including monitoring and evaluating the independence of independent auditor, and providing independent opinion in the event of differences of opinion between the management and the independent auditor regarding the services provided. Briefly, these activities can be described as follows

  1. Discussion with the Company Management. For each publishment of the Company’s consolidated financial statements (quarterly and yearly), the Audit Committee reviewed and discussed the statements to be published by the Company with the Company’s Management including discussion on the quality of applied accounting standards, the significant judgments used, and the adequacy of disclosures in the consolidated financial statements.
  2. Evaluation and suggestion for the appointment of Public Accounting Firm (KAP) to the Board of Commissioners. In the first Quarter of 2018, the Audit Committee recommended to the Board of Commissioners that for the appointment of Independent Auditor, they should reappoint KAP Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited), to conduct the general audit of the Company’s Consolidated Financial Statements for the fiscal year 2018. The Board of Commissioners approved the proposal and proposed it to the GMS. The Company’s Annual GMS on May 5, 2018 approved the appointment of KAP Purwantono, Sungkoro & Surja as the Company’s Independent Auditor to conduct the general audit of the Company’s Consolidated Financial Statements for the fiscal year 2018.
  3. Review of audit conducted by internal auditor.
    The Audit Committee seeks to empower, and work closely with Internal Audit through an emphasis on the work program direction. The Internal Audit work programs, not only focuses on financial and operational audits, but also focuses on providing advising on effectiveness and efficiency improvements in the Company operations. Periodically, the Audit Committee and internal auditor discuss the results of the established work program.
  4. Discussion with independent auditor. The Audit Committee discussed and reviewed the quality of the Company’s financial statements with independent auditor. The independent auditors were responsible for providing an opinion on the fairness of the audited consolidated financial statements in accordance with Indonesian financial accounting standards. The review also covered the judgment quality, and the adequacy of disclosures in the consolidated financial statements that has been prepared by the Management has prepared. This discussion included other matters required by the auditing standards for discussion and communication with Audit Committee by the Independent Auditor, including independence of KAP and its auditors’ from the Management and the Company.

 

AUDIT COMMITTEE RECOMENDATIONS

As part of its duties and responsibilities, the Audit Committee provides recommendations to the Board of Commissioners regarding the areas under which the Audit Committee is responsible for oversight. During 2018, the Audit Committee recommendations were as follows:

 

AUDIT COMMITTEE COMPETENCY DEVELOPMENT

To support the execution of its duties, Audit Committee members attended training programs in order to improve their competencies, that are conducted either formally or informally. The competency development programs attended by Audit Comimittee members can be seen in the Company Profile Chapter.