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research is to explain data, information, and facts
obtained from the unit of analysis then analyze and
measure internal controls and risk management
process based on COSO-ERM Integrated
Farmework and ISO 31000:2009 to know the
company’s control and risk management in general.
Then analyze role of internal audit in internal control
and risk management PT. Reinsurance ABC which
is assessed based on International Standards of
Internal Audit Professional Practice (IPPF) by
Institute of Internal Auditors (IIA).The author uses a
lot of data from company’s audit work program,
internal audit reports, and literature studies by
collecting books, scientific journals, articles, rules,
professional standards related to internal audit and
risk management.
The unit of analysis in this study is PT.
Reinsurance ABC as a single unit analysis. PT.
Reinsurance ABC located in Jakarta The scope of
this analysis is the role of internal audit in carrying
out internal control and management of the PT.
Reinsurance ABC. This study provides
recommendations and improvements to the role of
internal audit in internal control and management of
PT. Reinsurance ABC. Data collection is done by
Observation and inteview. It conducts direct
observation of activities related to internal audit
audit activities, internal control, and also internal
audit’s role in risk management of PT. Reinsurance
ABC. The interview activity was carried out with
parties who had a direct connection with the
research conducted. They are internal audit ‘s
department and risk management’s department.
4 ANALYSIS
Authority, responsibility and objectives of the
internal audit function of PT. Reinsurance ABC has
been formally defined in the IA charter or internal
audit charter, but the charter of PT. Reinsurance
ABC distributes the audit charter for its own internal
audit and there has been no significant change to the
previous internal audit charter. So that there is a
need for periodic updates and distributed to all
management organizations tailored to the objectives
of the company. However, the tone of the top
currently supports the internal audit function and
role. Internal audit helps management achieve its
goals, vision, and mission with its activities. Internal
audit conducting an assessment or assurance and
consulting on internal control and risk management
of the company. Technical assessment or assurance
and internal audit consultation of PT. Reinsurance
ABC currently, there are still some shortcomings,
the audit plan of PT. Reinsurance ABC is less
systematic and the realization of audit planning that
has been made is not all running. That is because the
internal audit’s staff is very little, while PT.
Reinsurance ABC always plans to audit all
company’s departments. Head of internal audit of
PT. Reinsurance ABC is a person who is quite
experienced in his field, but due to the heavy load of
work to audit all departments so that he is not
effective in doing his work. Risk assessment is not
compiled based on the priority values of each
component or department, but based on previous
audit findings and audit findings are often repeated,
so that they cannot provide appropriate
recommendations and have a significant impact.
Therefore, it is necessary to add competent
internal auditors and PT. Reinsurance ABC needs to
implement risk management in every audit plan
carried out by the company, so that internal audit’s
work becomes more effective. The audit by a
company's internal audit also needs to be based on a
good and systematic risk-based audit (RBIA), which
uses the entire risk management process, so that the
audit process is more structured. The next stage,
transaction testing has been carried out by referring
to the audit program, but lack of communication and
the absence of documentation of the results of
clarification with the auditee. Internal Audit PT.
ABC Reinsurance is now able to communicate the
results of audit assignments in the form of audit
reports. However, at this time the auditee has not
clarified the issues for any of the things reported in
the conflict regarding matters not approved by the
auditee. So, the recommendations for improvement
often only go in one direction and there is no good
discussion, so that the internal audit of company
must increase its consultative role. After reporting,
the internal auditor will follow up on the audit
results. Follow-up of audit results has been quite
well done, but there are still corrective actions that
should have been carried out and have not been
carried out until the next audit report period.
Based on IIA’ performance standard 2130,
activities carried out by internal audit or can also be
called the role of internal audit in internal control,
which must be able to evaluate the adequacy and
effectiveness:
a. Information on Company Financial Statements
Internal audit has conducted an audit or
assessment of the accounting system and
reviews of financial statements contained in the
UNICEES 2018 - Unimed International Conference on Economics Education and Social Science
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