To enhance corporate governance and internal control in its work environment, the Company has developed an Internal Control System that integrates the Internal Audit Unit and Risk Management functions. This system is outlined in detail in the Standard Operating Procedure (SOP) guidelines, which are designed to assure the effectiveness and efficiency of business operations, the reliability of financial reports, asset security, and compliance with applicable laws and regulations. The Internal Control System is critical in preventing and detecting fraud and safeguarding the Company’s tangible and intangible assets. The Company employs this integrated system in all of its actions and activities, which encompass all business components and all of which contribute to the achievement of the Company’s goals and objectives.
The Company develops its SOPs in accordance with the Treadway Commission’s Committee of Sponsoring Organizations (COSO) approach for evaluating internal control. The Internal Audit Unit evaluates these SOPs on a periodic basis to ensure they remain effective and compliant with the constantly changing business environment and conditions.
Internal Control System Implementation and Assessment in 2021
Internal control is a procedure that the Board of Commissioners, the Board of Directors, and other members of management establish and implement. The Board of Directors ensures that internal control and risk management functions are available and applied across all Company’s aspects and lines. The Board of Directors is assisted in assessing the design and effectiveness of internal control implementation by the Internal Audit Unit, which always coordinates with the Audit Committee to ensure that the Internal Control System is implemented in accordance with the Company’s goals and objectives.
During the 2021 fiscal year, the Internal Audit Unit has been implemented an Audit Planned and an Audit by Special Request, both to the Company and to the Company’s subsidiaries. In a year, the Internal Audit Unit conducts at least two audits, both operational and compliance audits, as well as by special requests.
The Board of Commissioners and the Board of Directors believe that the current Internal Control System complies with all applicable standards for effectiveness, efficiency, reliability, security, and regulatory compliance. In the face of various internal and external changes, the Company is prepared to make improvements to ensure the availability of an Internal Control System that is consistent with the Company’s business development.