Internal Control System GENERAL

1 C HA P T E R I IN T R O D U C T IO N C HA P T E R I I T H E PR IN C IPL ES O F G O O D C O R PO R A T E G O VER N A N C E C HA P T E R I I I T H E C O MP A N Y O R G A N S C HA P T E R I V T H E C O MP A N Y’ S PR IN C IP A L PO L IC Y C HA P T E R V I MA N A G EMEN T O F R EL A T IO N - SH IP W IT H ST A K EH O L D ER S C HA P T E R V I I IMPL EMEN T A T IO N O F G U ID EL IN ES C HA P T E R V I I I C L O SI N G C HA P T E R V MA N A G EMEN T O F SU B SI D IA R IES 53 53 organization structure of the Company, which includes among others: authority, authorization, verification, reconciliation, performance assessment, segregation of duties and security of the Company’s assets. d. Information and communication system is a process of presentation of the report on operational and financial activities, and obedience and adherence to provisions of legislation by the Company. e. Monitoring, is an evaluation process of the quality of internal control system including internal audit function on every level and unit within the structure of the Company, in order that the control can be performed optimallly. Monitoring of the internal control system, includes: a. Financial control. b. Operational control. c. Risk management. Monitoring of control systems in the implementation of Good Corporate Government is conducted by: a. Head of the respective section and unit as the implementation of the close supervision. b. Strategic management division or work units which have the function and responsibility to manage, implement, evaluate, and develop the corporate governance framework effictively and efficiently. c. Internal Audit Unit Function that performs internal control in the form of implementation of internal control, risk management, and corporate governance process in accordance with the legislation and Company policy, and also monitor the follow-up implementation. d. Stakeholders as the implementation of community supervision and the Company is open for information or complaints and claims received from the communities for complete follow-up.

4. External Auditor

PT SUCOFINDO PERSERO considers the external auditor as partner that performs an audit and delivers input on finance activity and presentation of financial reports. Therefore the external auditor is expected to evaluate the implementation of management function both in operational and financial activities. 1 54 54 PT SUCOFINDO PERSERO policy on the external auditors is determined as follows: a. External Auditor must be appointed by the GMOS from candidates