The Position And Role Of The Internal Auditor To Improve The Company's Performance And Efficiency In PT (Persero) Port Indonesia I Belawan Branch

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The Position and Role of the Internal Auditor to Improve the Company's Performance and Efficiency in PT (Persero) Port Indonesia I Belawan Branch

Introduction

PT (Persero) Pelabuhan Indonesia I Belawan Branch, located on Jalan Gunung Krakatau No. 100 Medan, is a strategic player in supporting logistics and transportation activities in the region. As a vital component of the company's organizational structure, the internal auditor plays a crucial role in ensuring the company's performance and efficiency. This study aims to explore the position and role of internal auditors in improving company performance and efficiency. By gathering information from competent workers in the company, the authors hope to gain a deeper understanding of how internal auditors can contribute to improving organizational performance.

Research Methods

In this study, the authors employed qualitative descriptive methods to collect and analyze data. The data collection techniques involved conducting interviews with individuals who have knowledge and experience in their fields at PT Pelabuhan Indonesia I Belawan Branch. The data analysis was carried out descriptively to answer research questions and provide a clear picture of the internal position of the auditor in the organizational structure and the implementation of the internal controls they do.

The Internal Auditor's Position in the Organization

From the results of the study, it was found that the auditor's internal position was under the branch manager. This shows the importance of their role in the company's hierarchy structure. As an independent supervisor, internal auditors have the responsibility to assess and increase the effectiveness of the internal control system. They not only have the duty to conduct audits, but also provide improvement recommendations aimed at minimizing risk and improving overall company performance.

The Internal Auditor's Role in Improving Performance

Internal auditors have several crucial roles in improving company performance:

  1. Evaluation of Business Process: Internal auditors conduct in-depth evaluations of various business processes, identify potential obstacles and inefficiencies. Thus, they can recommend changes that can increase productivity and improve overall performance.

  2. Risk Control: By analyzing various risks that the company might face, internal auditors can help management in formulating effective mitigation strategies. This enables the company to minimize potential losses and ensure business continuity.

  3. Increased Transparency: Internal auditors play an important role in maintaining transparency and accountability in financial statements. This is very important to build the trust of stakeholders, including investors, customers, and regulatory bodies.

  4. Compliance with Regulations: Internal auditors ensure that the company complies with relevant laws, regulations, and industry standards. This helps to prevent non-compliance issues and reputational damage.

The Importance of Internal Auditor Competencies

The development of internal auditor competencies is crucial to ensure that they can carry out their roles effectively. This includes:

  • Knowledge and Skills: Internal auditors need to possess the necessary knowledge and skills to perform their duties, including auditing, risk assessment, and reporting.
  • Independence and Objectivity: Internal auditors must maintain their independence and objectivity to ensure that their findings and recommendations are unbiased and reliable.
  • Communication Skills: Internal auditors need to possess effective communication skills to convey their findings and recommendations to management and other stakeholders.

Conclusion

The position and role of the internal auditor at PT (Persero) Port Indonesia I Belawan Branch is very important. With a strategic position in the organization, they not only function as supervisors, but also as a strategic partner in decision making that can improve company performance and efficiency. Through the process of evaluating and controlling the risk carried out, internal auditors make a significant contribution to the sustainability and success of the company in the future. Thus, the development of auditor's internal competencies needs to be a major concern so that they can carry out this role more optimally.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • Develop Internal Auditor Competencies: The company should invest in developing the competencies of internal auditors, including knowledge, skills, and independence.
  • Enhance Communication: Internal auditors should enhance their communication skills to convey their findings and recommendations effectively to management and other stakeholders.
  • Increase Transparency: The company should increase transparency and accountability in financial statements to build trust with stakeholders.

By implementing these recommendations, the company can improve its performance and efficiency, and ensure its sustainability and success in the future.
Frequently Asked Questions (FAQs) about the Position and Role of Internal Auditors in PT (Persero) Port Indonesia I Belawan Branch

Q: What is the primary role of an internal auditor in PT (Persero) Port Indonesia I Belawan Branch?

A: The primary role of an internal auditor is to assess and increase the effectiveness of the internal control system, providing improvement recommendations aimed at minimizing risk and improving overall company performance.

Q: How does an internal auditor contribute to the company's performance and efficiency?

A: An internal auditor contributes to the company's performance and efficiency by conducting in-depth evaluations of various business processes, identifying potential obstacles and inefficiencies, and recommending changes that can increase productivity.

Q: What are the key responsibilities of an internal auditor?

A: The key responsibilities of an internal auditor include:

  • Conducting audits and evaluations of business processes
  • Identifying potential risks and recommending mitigation strategies
  • Providing improvement recommendations to management
  • Maintaining transparency and accountability in financial statements
  • Ensuring compliance with relevant laws, regulations, and industry standards

Q: Why is it essential to develop internal auditor competencies?

A: It is essential to develop internal auditor competencies to ensure that they can carry out their roles effectively. This includes possessing the necessary knowledge and skills, maintaining independence and objectivity, and possessing effective communication skills.

Q: How can internal auditors enhance their communication skills?

A: Internal auditors can enhance their communication skills by:

  • Developing clear and concise reporting
  • Providing regular updates to management and other stakeholders
  • Using effective communication channels, such as email, phone, and in-person meetings
  • Encouraging feedback and suggestions from stakeholders

Q: What are the benefits of increased transparency and accountability in financial statements?

A: The benefits of increased transparency and accountability in financial statements include:

  • Building trust with stakeholders, including investors, customers, and regulatory bodies
  • Enhancing the company's reputation and credibility
  • Improving financial reporting and decision-making
  • Reducing the risk of non-compliance and reputational damage

Q: How can internal auditors ensure compliance with relevant laws, regulations, and industry standards?

A: Internal auditors can ensure compliance with relevant laws, regulations, and industry standards by:

  • Staying up-to-date with changes in laws, regulations, and industry standards
  • Conducting regular audits and evaluations of business processes
  • Providing recommendations for improvement and mitigation strategies
  • Collaborating with management and other stakeholders to ensure compliance

Q: What are the consequences of not developing internal auditor competencies?

A: The consequences of not developing internal auditor competencies include:

  • Ineffective auditing and risk management
  • Reduced trust and credibility with stakeholders
  • Increased risk of non-compliance and reputational damage
  • Decreased company performance and efficiency

Q: How can PT (Persero) Port Indonesia I Belawan Branch improve its internal audit function?

A: PT (Persero) Port Indonesia I Belawan Branch can improve its internal audit function by:

  • Developing internal auditor competencies
  • Enhancing communication and collaboration with management and other stakeholders
  • Increasing transparency and accountability in financial statements
  • Ensuring compliance with relevant laws, regulations, and industry standards

By addressing these FAQs, PT (Persero) Port Indonesia I Belawan Branch can improve its internal audit function and ensure its sustainability and success in the future.