An internal audit is an independent and objective analysis of the organization’s operation aimed at improving its overall performance. At PT Kimia Farma Trading & Distribution (KFTD), internal audits serve various purposes, from improving operations to preventing corruption.
The Importance of Internal Audits
Any organization requires an internal audit because it can perform the following functions:
1. Protection of the company’s assets
Assets are necessary for the company to continue its operations and fulfill stakeholder obligations. Performing an internal audit can help the organization determine whether its assets are used accordingly and whether there are misappropriations by members.
2. Evaluating risks
During an internal audit, auditors track various documents about the company’s operations. This allows them to identify risks that the organization encounters, including conflicts of interest and bribery, and design a mitigation plan to tackle these challenges.
3. Ensuring adherence to regulations
Organizations should perform a regular internal audit to ensure compliance with all relevant regulations. It is important to prevent future legal complications. Furthermore, KFTD considers compliance with regulations an important means to maintain stakeholders’ trust.
4. Improving the company’s efficiency
Internal audits are also necessary for the organization’s development. It enables the company to identify which parts of its operations are inefficient so the organization can improve them. This results in long-term, sustainable development for all departments.
Other Efforts
In addition to performing internal audits, the company also makes other efforts to prevent bribery. First, the company provides education about wealth reporting for its employees across all levels.
This training encourages employees to improve their personal integrity as they must report their wealth truthfully. Furthermore, it supports the accuracy of internal auditing.
KFTD also received the Certificate of Registration Anti-Bribery Management System ISO:37001:2016, which emphasized its commitment to preventing bribery on various fronts. In addition to internal audits, the company has undergone external audits to assert its compliance with regulations and commitment to stakeholders.