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.