Internal control helps the entity achieve its objectives and sustainably maintain and improve performance. The COSO Framework is the foundation for developing internal control systems that enable organizations to effectively and efficiently adapt to changing business and operating environments, mitigate risk to acceptable levels, and support good organizational decision-making and governance.
Designing and implementing an effective internal control system can be challenging as the environment changes. New and rapidly changing business models, greater use and reliance on technology, increased regulatory requirements and oversight, globalization, and other challenges demand any internal control system to be agile in adapting to changes in the business, operations, and regulatory environment.
Similarly, the types of fraud that adapt to the new environment in line with the transformation and industrial revolution. Fraud is never zero. Fraud is like a virus that becomes a latent danger that can lurk if there are no prevention and detection efforts. The supervisory function must be effective to prevent the occurrence of fraudulent acts in the organizational environment.
Forum Training “improving the effectiveness of the supervisory function through Anti-Fraud System " is one of the best alternatives to improve capability and insight, especially for stakeholders in the field of supervision and internal audit.
PUSAKA held a training activity to increase the effectiveness of supervisory functions through the Anti-Fraud System in Bali with participants from internal auditors, audit committee, BUMN commissioners and BLU in Bali on December 14, 2022.
The objectives of this anti-fraud training are: 1) Participants understand the concept of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) as an Internal Control—Integrated Framework; 2) Participants understand the strategy for implementing internal control at various levels of entities, operating units and functional units; 3) Participants have knowledge of a principle-based approach that provides flexibility and allows judgment in designing, implementing and implementing internal controls; 4) Participants understand the means to identify and analyze risks, and to develop and manage appropriate responses to risks within an acceptable level with an anti-fraud system; 5) Participants have knowledge about the definition of fraud and its types as well as the scope of financial crime (financial rime); and 6) Participants have knowledge of the anti-fraud system, the Whistleblowing System (WBS) approach and the red flag system (RFS).
The material discussed in the training included: 1) The Committee of Sponsoring Organizations of the Treadway Commission (COSO) as an Internal Control—Integrated Framework: (a) Control Environment, (b) Risk Assessment, (c) Control Activities, (d) Information and Communication, (e) Monitoring Activities; 2) Optimization of the Oversight Function: (a) Financial information and reports, (b) Internal control system and its implementation, (c) Internal audit implementation as well as, (d) External audit implementation, (e) Risk management and its mitigation, (f) Compliance and Corporate Governance; 3) Optimization of Audit Committee Functions: (a) Main Functions of the Audit Committee, (b) Legal Framework, (c) Audit Committee Governance, (d) Audit Committee Communication and Reporting, (d) Audit Committee Performance Development and Evaluation ; 4) Optimizing the Functions of the Internal Supervisory Unit (Internal Auditor); (a) International Professional Practices Framework (IPPF Standards), (b) Internal Audit Charter, (c) Independence and Objectivity, (d) Competence, (e) Quality Assurance and Improvement Program, (f) Internal Audit Capability Model, (g) ) Advisory Role, (g) Technology; 5) Anti-Fraud System: (a) Types of Anti-Fraud System, (b) Whistleblowing System (WBS), (c) Red Flag System (RFS), (d) Analysis of Regulatory Compliance, (e) Role of Internal Audit in Fraud Prevention; and 6) Risk Management & Anti-Fraud Strategy: (a) Active Supervision, (b) Policies and Procedures, (c) Organizational Structure and Accountability, (d) Control and Monitoring, (e) Anti-Fraud Strategy.
Resource person in anti-fraud training for internal auditors is Dr. Dr. Moh Mahsun, SE, M.SI, AK, CA, CPA, CFRA, CPI, CHFI, CIPSAS, founder and head of PUSAKA.