Home > Governing Adaro >

Audit Committee Report

The Audit Committee operates pursuant to a charter, which outlines the Audit Committee’s duties and responsibilities to support the BOC in its oversight functions, primarily of the financial and business operations.

The duties and responsibilities of the Audit Committee are among others to provide professional and independent opinions to the Board of Commissioners over the reports or other issues submitted by the Board of Directors to the Board of Commissioners and discharges other related duties of the Board of Commissioners. To ensure the Audit Committee operates effectively and efficiently, the all encompassing duties and responsibilities include review of the financials, selection, appointment and supervision with the Independent Auditor, pre-approval of non-audit services, effective internal controls, compliance with the laws and regulations, risk management practices and reporting, audit the Board of Directors meetings’ resolutions, review third party complaints, special assignments and conduct self assessments of the Audit Committee duties.

A number of basic essential programs completed during 2009 were implemented by upholding the Audit Committee’s underlying principles of enhancing added value to Adaro Energy and mitigating Adaro Energy’s risks. During the year, the Audit Committee completed its charter to serve as a guiding tool to support the oversight function of Adaro Energy. Together with Adaro Energy’s management, the Audit Committee assisted in developing and finalizing a robust internal audit system. In line with its charter, the Audit Committee discharged its obligation in the selection process of Adaro Energy’s External Auditor to audit Adaro Energy’s 2009 financials. Furthermore, the Audit Committee continuously assessed Adaro Energy’s quarterly financials as well year end audit, reviewed the Company’s legal compliance practices, and started to disseminate understanding about risk management practices to the Company and its subsidiaries. In addition, the Audit Committee reviews Adaro Energy’s CSR and sustainability programs to ensure that the activities meet the needs of the environment and communities. In 2009, the Audit Committee held 24 meetings with the following details: 

Audit Committee
Left to Right:
Mamat Ma’mun, SE
Ir. Palgunadi Tatit Setyawan
Dr. Ir. Irwandy Arif, MSc