Audit Committee is responsible to the Board of Commissioners to conduct
independent oversight of the financial reporting, assessing the
effectiveness of the Company’s internal control and risk management,
ensuring the compliance with laws and regulations, monitoring the
significant legal cases, as well as ensuring the adequacy of independent
audit and internal audit in accordance with the Audit Committee
To assist the implementation of the roles and
responsibilities of the Board of Commissioners, the Audit Committee
monitors and oversee the implementation of Management’s responsibility
on internal control and consolidated financial reporting and
implementation of independent auditor’s responsibilities on audit of the
annual consolidated financial statements prepared in accordance with
accounting standards generally accepted in Indonesia in order to publish
a report containing auditor’s opinion on these financial statements.
part of the oversight process, the Audit Committee held meetings
periodically with Management, Independent Auditor and Internal Auditor
and reported to the Company’s Board of Commissioners.
2016, the implementation of the roles and responsibilities of the Audit
Committee are conducted in accordance with the Charter of the Audit
Committee as follows :
|1.|| Review on Financial Information and Financial Performance|
encourage financial information to be presented and published by the
Company in accurate, reliable and trustworthy manner, the Audit
Committee has conducted reviews and discussions with the management
regarding both the Company’s consolidated financial statements as well
as other financial information.
|2.||Supervision of the work of the Independent Auditor|
|In carrying out the function of oversight of the work of auditors, the Audit Committee conducted several activities, namely:|
|a. Reviewing and discussing with the Company's independent auditor regarding the audit plan and its implementation.|
Monitoring the financial reporting process by discussing the audit
process of the consolidated financial statements of the Company.|
|c. Examining the key findings of the external auditors and monitor the implementation of audit recommendations.|
d. Ensuring the Financial Statements of the Company can be published in a timely manner.
|3.||Evaluation of the effectiveness of internal controls and the implementation of the Internal Audit function|
Audit Committee has evaluated the effectiveness of internal controls and
the implementation of the duties and functions of internal auditors
through the following activities:|
Reviewing and discussing with the Company's Internal Auditor regarding
the audit activities during 2016 and 2017 Internal Audit plan.|
Evaluating the implementation of Internal Audit and examine the key
findings of the internal audit and monitor the implementation of audit
Audit Committee together with internal auditors had visited several
company’s plantations to gain a deeper understanding of the business
processes that are useful to carry out the activities of the Audit
Committee in reviewing the effectiveness of internal control.
|4.||Review on Risk Management|
Audit Committee periodically has also conducted review on risk
management and risk mitigation. The Audit Committee held discussions and
in-depth discussion with the Management regarding the key risks faced
by the Company and how the risk mitigation strategy undertaken by the
|5.||Compliance with the Rules and Regulations|
Audit Committee has conducted a review and oversight of the Company's
compliance with laws and regulations, including monitoring the laws and
regulations related to Company’s business as well as any lawsuit /
disputes relating to the Company and its operations.|
During 2016, the Audit Committee has conducted 7 (seven) meetings with the Management, Internal Auditors and the Independent Auditors, to carry out the work program of the Audit Committee in 2016. The attendance rate of all members of the Audit Committee reached 100%.
In conducting the activities and the implementation of roles and responsibilities, the Audit Committee expressed appreciation for the whole explanations and responses provided by the management during the implementation of these activities and the ability of Management to follow up on audit recommendations.
This report was prepared and signed by the Audit Committee of PT Astra Agro Lestari Tbk.
Jakarta, 31 Desember 2016
|Soemadi Djoko Moerdjono Brotodiningrat|| Juliani Eliza Syaftari || Ratna Wardhani|
|Chief|| Member|| Member|