Strong internal controls are an integral part of Pakistan Petroleum Limited (PPL)’s corporate governance structure which enables the company to work efficiently towards the best interest of its stakeholders. To this end, PPL’s Board of Directors has set up an independent Internal Audit function headed by a General Manager, who reports to the Board Audit Committee and obtains operational support from the company’s Chief Executive Officer.
The scope of Internal Audit’s (IA) activities is defined by the Board Audit Committee in the Internal Audit Charter which is compliant with Corporate Governance Rules and leading international best practices. To this end, Internal Audit’s work focuses on reviewing the quality of financial reporting, effectiveness of risk management activities and improvement in the existing policies and procedures. Internal Audit also assesses the effectiveness of Company's IT systems and procedures.
To facilitate independence and objectivity of this function, Internal Audit staff has unrestricted access to all company records and information. Furthermore, Internal Audit also has access to all technical and professional resources that it requires to perform audit assignments. Recommendations for improvements made by the IA function are communicated to the Management at all levels for implementation on priority.
Over the years, IA function has proven to be a great source of value addition to the company.