CASE STUDY: PREPARING A SUCCESSFUL INFORMATION TECHNOLOGY AUDIT FOR REMITTANCE COMPANY

Written by Mardiana S. M. and Samuel S. K. A. on 2/7/2024

The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

An established foreign investment company needed to prepare for an IT audit. Facing challenges in meeting compliance standards, the company required assistance with reviewing its internal documents and system to ensure they comply with legal and regulatory requirements by inquiring Putranto Alliance to provide the service. The service includes audit preparation, offering consultation, and document creation for the company. The document creation includes an organizational chart, internal policy development, and risk management strategies. The successful collaboration resulted in comprehensive audit documentation, reinforcing the reputation of the company as a reliable remittance service provider poised for further expansion.

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Situation

An established foreign investment company, officially licensed by Bank Indonesia, specializes in international money transfer (remittance) services from overseas to Indonesia.

Partnered with Indonesian local banks with an extensive network across foreign countries, the company aims to be a primary choice for both Indonesian workers and business enterprises.

They deliver their service through the most updated current exchange rate information and provide easily accessible money transfer services in convenient stores.

Complication

Bank Indonesia Regulation mandates remittance companies to submit an information system audit report from an independent auditor to Bank Indonesia at least once a year.

The company needs to update its documents to meet the compliance standard during the time of the audit. The requirement to update its IT security system based on the applicable regulations prevents the possibility of a compliance challenge.

To address the matters above, the company needs Putranto Alliance expertise to prepare the required documentation and review regulatory compliance.

Question

After performing a comprehensive review to the company, the key documents that needs to be updated are as follows:

  1. Organizational chart;
  2. Policy development; and
  3. Risk management strategies.

Answer

Putranto Alliance assisted in the audit preparation, offering consultation and document creation support.

The documents that need to be updated are as follows:

IT Audit Documentation Issue Tree

Organizational Chart

The services related to the organizational chart are, but are not limited to, creating and updating the company structure ranging from segregation of duties, roles, and responsibilities. These documents were updated based on the existing company structure which includes:

  1. Internal Audit, Risk Management and Compliance;
  2. Accounting and Finance;
  3. Marketing;
  4. IT;
  5. Remittance;
  6. Risk Assessment Unit for Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT).

Policy Development

The services related to the internal policy development are, but not limited to:

  1. Creating the Human Resources (HR) procedures, related to:
    1. Recruitment;
    2. Training for the software competence;
    3. Termination of employees.
  2. Improving the policy regarding IT infrastructure, which includes:
    1. Procurement;
    2. Development.
  3. Creating the technical stages of the audit trail, a procedure for authenticating security measures and mitigating system breaches.

Risk Management

The services related to the risk management are, but not limited to:

  1. Creating a risk register of the activities related to money transfer service;
  2. Creating a business continuity plans to mitigate potential threats;
  3. Identifying other compliance enforced by local institutions.

The assistance also includes providing the revisions and finalizations, to ensure all requirements are accepted by the independent auditor. The service facilitated a smooth audit process for the client and strengthened their infrastructure against future challenges.

With these improvements, this remittance company became more prepared as a reliable provider in the industry to continue its expansion and enhance service delivery to its clients.

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