RECONSTRUCTION OF AUDIT COMMITTEE ARRANGEMENTS IN FRAUD PREVENTION IN LIMITED COMPANIES
Obstacles in corporate management are the emergence of fraud. Fraud is a violation of business ethics and the principles of good corporate governance. Article 121 of Law No. 40 of 2007 concerning Limited Liability Companies does not regulate the position of the Audit Committee and the Accountability of the Audit Committee so that this will result in the absence of legal certainty and legal injustice.This study aims to discuss the nature of the regulation of the position of the Audit Committee in a Limited Liability Company, the accountability of the Audit Committee in preventing fraud in a Limited Liability Company, and the model for reconstructing the legal accountability of the Audit Committee in preventing fraud in a Limited Liability Company. This research is a type of legal researchnormative or doctrinal research by using Philosophical, Statute, Conceptual and Comparative Approaches.The results of this study are the essence of the regulation of the position of the Audit Committee in a Limited Liability Company as a business ethic based on the values of goodness, honesty and integrity, in addition to being a reinforcement in order to make the principle of Good Corporate Governance (GCG) effective. The accountability of the Audit Committee in preventing fraud as regulated in Article 121 paragraph (2) of the 2007 Limited Liability Company Law needs to be emphasized, namely being responsible to the Board of Commissioners and the GMS can request information from the Audit Committee regarding the implementation of its duties and functions if there is suspicion of fraud. The Reconstruction Model of the legal accountability of the Audit Committee in the new Limited Liability Company Law regulates the position of the Audit Committee, namely the objectives, authorities, obligations of the Audit Committee, term of office, requirements to become an Audit Committee, the accountability system of the Audit Committee in a Limited Liability Company, the fraud disclosure system or whistleblowing system and legal protection for reporters (Whistleblowers).
Limited Liability Company, Reconstruction, Position, Audit Committee.