Legal Auditor do not currently common in some circles in Indonesia today. But, basically Legal Auditor are not much different from some work that has been done by legal counsel or advocate, namely to assess how a legal subject and object of the law in the implementation of the law. The common language used for this is a legal opinion or legal due diligence.
Legal audit is basically an examination and analysis of the law on the implementation of the various laws and regulations by certain parties that the target of the audit (auditee), both individuals and institutions (public or private) in relation to the level of legal compliance or legality (either wealth or assets and liabilities or in debts; transactions and legal actions; and/or activities) so that can know the quality of awareness and compliance with the law or to what extent the laws are adhered to and applied to the parties concerned.
The purpose of auditing the law itself is to obtain audit report law that contains a picture or portrait of the level or quality of awareness and legal compliance audit target law (auditee) that can be known and ascertained that the statutory provisions are adhered to and has been implemented properly or there legal provisions have not been complied with and implemented by auditee.
From the audit work of this law will be obtained the audit report which contains about law review/analysis of auditee legally in order to obtain an overview of the compliance rate auditee accompanied by a legal opinion, and if it is necessary to include also advise or legal advice to auditee.
The benefit from legal audit can be given to various institutions such as:
1.1. Public sector
Will know the level of compliance and application of the law and / or violation of law by the institutions and / or officials of state officials and / or government
Legal audit results can be used to repair and / or improve the quality of compliance and implementation of laws for the realization of good and clean governance
The results of the audit in the form of “portrait” of compliance and/or the level of violations of the law, will be taken attitudes and actions in giving rewards to those who have a level of quality compliance and legal awareness is high, fix the violation or suboptimal law when it is feasible, or do action law firm and appropriate for those who have violated the law
1.2. Political Sector, Social and Community
Will know the level of compliance or quality conscious application of the law on businesses that were related to the business establishment, licensing, taxation, business registration, completeness and legality of ownership of assets and / or debt, legality and perfection of legal transactions, as well as a variety of problems and / or legal disputes that occur following treatment
From the audit results to be obtained feedback law as input to be done coaching, supervision and regulation as well as improving arrangements effectively and efficiently in order to create the level of law enforcement high compliance (compliance rules) and the establishment of good corporate governance ( GCG)
From the results of the audit can be performed risk management for all risks can be measured and anticipated and managed with maximum with legal action and prepared legal disaster recovery contingency plan
From the results of legal audit can be carried out adequate legal protection on investment business
The results of legal audit can be done to eradicate a variety of possible violations of the law in various sectors businessmen
1.3. Political Sector, Social and Community
By legal audit can be detected quality and compliance awareness and application of the law by political and social organizations, as well as politicians and activists of social organizations
Can be built up and the realization of the political, social and civic regulated, orderly, democratic and law-abiding
Can be done in terms of prevention and repression of the law firm and appropriate for those who commit violations
In conducting there is no different sectors both in the public sector, private sector or sectors of political, social and community, then it will be known two types of audit forms that will be made a statutory auditors, namely Audit General Law (AGL) and Audit Special Law (ASL).
Audit General Law (AGL)
In AGL, the auditor will take action legal audit thoroughly the subject law relating to individuals, organizations or institutions from the establishment, shareholders, directors and commissioners, licensing, registration, parent company, subsidiaries, group companies, property or assets and debts or obligations, legal events and / or legal acts, transactions law or legal relations following its contracts, as well as various legal issues that happened to him, including how to handle and completion.
With this AGL will be known performance targets Legal Audit review of aspects of the law for a period consistent with the provisions in force or in accordance with the Articles of Association Audit objectives of this law, which is usually done within a period of one (1) year so that it can be determined in the next step.
Therefore, basically AGL can also be referred to as the Law of the Annual Audit conducted annually or periodically which can also be carried out in accordance with certain specified period or governed by the law of the relevant audit objectives.
Audit Special Law (ASL)
ASL is basically done for a certain scope and / or with a specific purpose. ASL with a certain scope can be conducted to determine the level of compliance and / or application of the law by the subjects certain legal (institutions and / or individuals), the object of the law or the assets and / or legal obligations or debts of a legal subject, or the level of compliance and implementation of the law against a legal act or transaction specific law, or regarding the existence of a legal problem or a particular legal dispute, or in the context of the completion of a transaction, legal problems or certain legal disputes.
Therefore in this case the Audit Special Law can also be called by other terms as the Audit Law of Investigation.
ASL can also be done in the case will perform an act of law or specific legal transactions, such as:
- Will be the establishment of a specific legal institution, whether public sector, the private sector, as well as political and social sectors
- Will be certain legal actions, such as the melting of an institution or a law firm, law firm or corporate merger, acquisition or corporate legal institutions, equity participation in legal institutions or companies, or in the case of dissolution will be done following legal institutions or enterprises with a settlement or liquidation
- Will be performed legal transaction certain – such as debts, a bank loan or other credit, issuance or purchase of securities, public offering, sale and purchase, exchange, lease, insurance coverage, – that prior to the start of the transaction until the completion of legal transactions
In this case ASL must be done before the legal transactions of an activity or a legal act carried out (before the execution of the transaction), as long as the transaction took place (during transaction), to monitor, control, supervise and / or inspect the transaction, deeds, handling a legal issue or execution of a project.
Noor Aufa
Managing Partners LN & Associates
Advocates – Legal Consultants – Attorney at Law
Legal Certified Auditors
Sun City Mall Commercial Complex Block A-2
Jalan Pahlawan No. 1 Sidoarjo East Java
Phone: +62318078777
Fax: +62318077077
Email: aufa.lawyer@gmail.com
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