Internal Audit Charter
The Internal Audit Division has an Internal Audit Charter as a mandate to implement the authority, duties and responsibilities of Internal Audit with competence, independency and reliability hence can be accepted by all stakeholders. The Head of Internal Audit Division is appointed and dismissed by the President Director with the approval of the Board of Commissioners. The Internal Audit Charter formed and based on the Decree of the Board of Directors No. AAID/CEO-CORSEC/8-2018/017 dated August 29th 2018.
Internal Audit Charter
The Company has established the Internal Audit Division as the Company’s commitment to comply with the Capital Market Authority Regulation and to enhance the value of strong internal governance as well as improve the Company’s operations.
Profile of Head of Internal Audit
Bastianus H. Freddy
|Education||Graduated from the University of Atmajaya in 2004|
|Legal Reference||Decree of the Board of Directors of the Company No. AAID/SK-DU/02-2018/001, dated 23 February 2018 on the Appointment of Head of Internal Audit|
|Professional Background||He has participated in various trainings on banking and taxes. Has more than 14 years experience in Audit.|
Structure on Internal Audit Division within the Company
Resources and Competency of Internal Audit Division
As of 31 December 2018, the Internal Audit Division comprises of 4 members, led by 1 Head of Internal Audit Division being appointed and dismissed by the President Director with 3 member of Auditors.
Duties and Responsibilities
- Develop and implement the annual Internal Audit plan;
- Analyze and evaluate the implementation of internal control and risk management system in accordance with the company policy;
- Conduct audit and assessment of efficiency and effectiveness in finance, accounting, operation, human resources, marketing, information technology and other activities;
- Provide suggestion for improvements and objective information on the audited activities at all levels of management;
- Make a report of the audit result and submit the report to the President Director and the Board of Commissioners;
- Monitor, analyze and report the implementation of recommended improvements;
- Cooperate with the Audit Committee;
- Develop a program to evaluate the quality of internal audit activities; and
- Conduct special audit if necessary.
2018 Internal Audit Division Activities
In 2018, Internal Audit Division T has performed all related duties and responsibilities as follows:
- a. Internal Audit function is to review the adequacy and effectiveness of AirAsia’s internal control system, so as to provide reasonable assurance that the systems continue to operate efﬁciently and effectively.
- The auditable areas are selected by assessing the risk exposure in terms of the volume of cash collection at stations, revenue leakages and frequency of audit visits.
- The auditable areas are selected by assessing the level of risk exposure in the ﬁnancial proﬁle, availability of risk proﬁle, existing control and detection activities; and monitoring of such areas.
- The Information Technology auditable areas are selected by assessing the risk exposure on the strategic, integrity and information, ﬁnancial, safety and security, operation and technology as well as external risks.