Audit Committee

BOARD AUDIT COMMITTEE

 

Chairperson :  Felia Salim

Members      :  1. Valina Singka Subekti

                        2. Farouk Muhammad

Secretary     :  Iwan Misthohizzaman

Purpose

The primary purpose of the Audit Committee is to assist the Executive Board of Kemitraan discharge its responsibility in the following areas:

  • ensuring the organization establishes, adopts, maintains and applies appropriate accounting and financial reporting processes and procedures;
  • facilitating the independence of the external audit process and addressing issues arising from the audit process; and
  • investigating any major cases which may affect the integrity and credibility of the organization and recommending improvement to the Executive Board
  • ensuring the organization maintains effective risk management and internal control systems.
  • overseeing the functioning of  external and internal audit roles of the organization including approval on the internal audit and general audit plan.

Governing Body

  1. Membership

The Audit Committee shall comprise of at least three members selected from within the Executive Board members who possess the requisite qualifications and financial literacy.  At least one member has a background in finance. Chairperson of the Executive Board can not be a member of the Audit Committee. The members of Audit Committee are selected through the Executive Board meeting.

  1. Chairperson

The Chairperson of the Audit Committee shall be selected by the Executive Board. The Chairperson of the Audit Committee is responsible for planning and conducting meetings. The Chairperson of the Audit Committee shall report significant findings and recommendations of the Committee to the Board after each Committee meeting.

  1. Secretary

The Executive Assistant of Kemitraan’s Executive Office shall act as Secretary of the Committee. The Secretary, with direction from the Chairperson, shall draw up an agenda, which shall be circulated to the members of the Committee.

Meetings

  1. Agenda and Frequency

Meeting shall be held at least 2 times a year. The chairperson sets agenda and signs an invitation. The Secretary arranges the meeting and prepares documents for the meetings.

  1. Participants and Quorum

Only members of Audit Committee shall attend the meeting. A meeting is considered quorum if attended by 2 members. Internal auditor, external auditor or Kemitraan Directors will join the meeting only when asked by the Audit Committee meeting.

  1. Minutes of Meetings

The minutes of all Committee meetings shall be signed by audit committee members and circulated to members of the Executive Board.

Authority

The Audit Committee shall have the authority to seek any information it requires from any staff of Kemitraan, internal and external auditors without the presence of Kemitraan’s management as necessary.

The Audit Committee is authorized to take independent professional advice but has no executive powers with regards to its findings and recommendations.

Responsibilities

The responsibilities of the Audit Committee shall include, but are not limited to the following:

1. Financial Reports

Reviewing Kemitraan’s financial statements and other financial information distributed externally including:

  1. Whether the financial statements presents true and fair value to the view of audit committee
  2. The appropriateness of the accounting judgments or choices exercised by Kemitraan’s management in preparing its financial statements.

2. Risk Management and Internal Control

Reviewing the organization’s Risk Management Framework to satisfy itself that it continues to be sound;

  1. Monitoring the establishment and implementation of internal control framework
  2. Monitoring risk assessment and the internal governance of the organization
  3. Reviewing external audit finding and recommendation as well as its follow up action by Kemitraan management.
  4. Reviewing reports on any major defalcations, frauds, or other irregularity cases in the organization’s internal controls;
  5. Initiating and supervising special investigations;

3. External Auditors

  1. Overseeing the selection and appointment of the external auditors
  2. Assessing the performance of the incumbent external auditors;
  3. Reviewing matters relating to auditor independence; and
  4. Ensuring the rotation of the audit partner every 3 years or as appropriate.

4. Internal Audit

  1. Reviewing the annual internal audit plan for adequacy;
  2. Reviewing internal audit reports;
  3. Appointing and removing the internal auditor; and
  4. Ensuring that the internal audit function is independent of the external auditors and management.

5. Internal Governance Compliance

  1. Reviewing policies on sensitive issues or practices such as gender, environmental and political issues;
  2. Reviewing policies to avoid conflicts of interest
  3. Reviewing the Audit Committee Terms of Reference.

6. Reporting to the Board

Ensuring that all matters relevant to the Audit Committee’s roles and responsibilities are reported to the Executive Board.

7. Review of Committee Performance

The Committee will annually review its performance and make recommendations to the Board for improving the effectiveness of the Committee.