Internal Audit Organization and Operation
Internal Audit Organization
The company's audit office is an independent unit, subordinate to the board of directors, with one audit supervisor and several auditors. The appointment and removal of the audit supervisor shall be approved by the Audit Committee and submitted to the Board of Directors for resolution. The company's corporate governance practices Article 3 of the Code of Ethics stipulates that the appointment, removal, evaluation, salary and remuneration of internal auditors should be reported to the board of directors or may be signed by the audit supervisor and reported to the chairman of the board of approval.
Responsibilities of Internal Audit
The responsibility of internal audit is to inspect and evaluate the adequacy and effectiveness of the internal control system, and provide timely improvement suggestions to ensure the continuous and effective implementation of the internal control system, thereby enhancing the effectiveness of company supervision, reducing corporate misconduct risks, and assisting the board of directors and management in fulfilling their responsibilities and achieving established organizational goals.
Operations of Internal Audit
The company has an internal audit system and internal control system. Based on the annual audit results and identifying the risks of each cycle, the company formulates an audit plan for the next year and implements it after approval by the board of directors. The audit plan scope includes all operation activities of the company and its subsidiaries. Audit report will be prepared and submitted to the chairman and audit committee after completion of internal audit. Suggestions will be made with regular follow up track of improvements if deficiencies or abnormalities are observed.
Internal audit reviews the self-assessment of the internal control system performed by each unit and synthesizes the results of the self-assessment. Together with the improvement of internal control deficiencies and abnormal matters discovered, it provides the basis for the board of directors and senior managers to issue an internal control statement.