Internal Audit Service
Overview
Business Hub Asia offers Internal Audit services to evaluate and enhance the efficacy of internal control, risk management, and governance structures. Independent and objective audits assure regulatory adherence, operational effectiveness, and the veracity of the organization’s financial records.
Get Expert HelpKey Features
Internal Control System Evaluation
A thorough examination of policies, procedures, and internal controls to ensure effectiveness and mitigate risks.
Compliance Audit
Assess whether the company has complied with applicable Indonesian government regulations, industry standards, and internal policies.
Operational Audit
Analyze the efficiency and effectiveness of the company's business processes in supporting strategic objectives.
Improvement Recommendations and Follow-Up Monitoring
Provide concrete suggestions and corrective action plans, and assist companies in monitoring the implementation of improvements.
Minimum Requirements
Organization Structure
Organizational structure and internal division of functions
Access to Documents
Access to financial and operational documents (ledgers, reports, SOPs, etc.)
Liaison Team
Appointment of internal liaison team (if required)
Audit Focus
Identification of areas or departments to focus on for the audit
Process and Timeline
1
Audit Planning
Create tailored audit plans with client consultation, including scheduling and methodology selection. Estimated Time: 3-5 working days.
2
Audit Implementation
Execute the planned audit, including data collection, interviews, and process observations using required methodologies. Estimated Time: 10-20 working days or longer if the audit scope is quite complex.
3
Reporting Audit Results
Draft an internal audit report with findings, analysis, and improvement recommendations. Estimated Time: 3-5 working days.
4
Implementation of Recommendations
Assist clients in implementing audit recommendations and conducting follow-up evaluations. Estimated Time: 10-20 working days or longer if the audit scope is quite complex.
*The internal audit process is estimated to take 5-10 weeks. This timeline is subject to change if unforeseen issues arise that necessitate additional consultation.
Important Consideration
- Internal audit is not just an obligation, but a critical strategy to maintain business integrity and stakeholder trust.
- Internal audits are non-punitive, focused on improving and enhancing governance.
- Audit results may be used for reports to investors, shareholders, or preparation for external audits.
- Services can be performed periodically (monthly, quarterly, annually) or based on specific project needs.
Frequently Asked Questions
What is an internal audit and why is it important?
An internal audit is a process of independent evaluation of a company’s internal controls, aimed at improving efficiency, compliance, and risk mitigation.
What is the difference from an external audit?
An external audit is an activity that is mandatory for every legal entity or separate company by involving a third party to carry out the audit process and provide its opinion on the company’s performance report.
Which types of businesses require internal audit services?
Companies that would like to ensure internal compliance against applicable rules, regulations, and standards, including companies that want to improve operational efficiency, reduce risk, and ensure compliance with laws and regulations. This service is suitable for companies listed on the stock exchange, companies that manage public funds and private companies with large turnover or loans from public financial institutions.
In general, internal audits are needed by every business to ensure that its operations are running properly.
Are these audits confidential?
Yes, the entire audit process and results are confidential and only addressed to management and company authorities.
What does an internal audit examine?
It depends on the focus of the audit, but may include finance, operations, HR, IT, legal compliance, and control systems.
Can the company determine the areas to be audited?
Yes. It is permissible to select a specific audit focus, such as finance, procurement, or regulatory compliance.
Is this service available for foreign companies (PMA)?
Yes. We are experienced in handling audits for both local entities and PMAs with cross-jurisdictional reporting needs.
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