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Indonesia has adopted the Internal Control over Financial Reporting (ICOFR) framework, regulated under PER-2/MBU/03/2023, to ensure the integrity and reliability of financial statements. ICOFR aims to prevent material misstatements, enhance trust in financial reports, and align with global best practices, with full implementation expected by early 2025. To learn more about ICOFR, refer to this article that explains ICOFR on PER-2.
Core Functionalities That Technology Should Possess
Implementing ICOFR comes with challenges that require a technological solution to fully support compliance, which can be seen in the table below.
| Challenge | Solution |
| Inadequate scoping: Misallocated resources due to unclear understanding of risks and controls. | Integrated scoping: Focuses on key risks and provides real-time insights for efficient resource use. |
| Poorly designed controls: Risks are not addressed effectively, leading to errors. | Control assessment: Ensures controls are properly evaluated to manage relevant risks. |
| Overwhelming documentation: Teams struggle with managing audits and reports. | Document management: Centralizes and organizes compliance documents for easy access. |
| Lack of coordination: Teams work in silos, slowing down compliance processes. | Collaboration tools: Improves teamwork and ensures everyone stays aligned. |
| Redundant testing and delays: Inefficient control testing leads to wasted effort. | Workflow management: Tracks issues and streamlines actions to avoid duplication. |
Compliance Made Easy with Compozer
Compozer is designed to address these challenges head-on. Its modular ICOFR solution provides all the core functionalities that modern GRC technology should possess.
Compozer empowers organizations to manage the entire ICOFR compliance program efficiently, from tracking changes and documenting processes to generating actionable insights through robust dashboards and reports. Its secure and configurable platform ensures compliance with local regulatory requirements while adhering to global best practices, making it an ideal partner for organizations navigating the complexities of ICOFR.