The Company’s internal audit work is mainly carried out in accordance with the audit plan approved by the Board of Directors. The audit plan is formulated based on the identified risks, and ad hoc audits are also carried out as necessary.
1. Organization of internal audit
The internal audit of the Company is an independent unit directly under the Board of Directors. Its purpose is to assist the board of directors and managers to check and review the deficiencies of the internal control system, measure the effectiveness and efficiency of operations, and provide timely improvement suggestions. The internal audit ensures the internal control system can be continuously and effectively implemented and serves as the basis for reviewing and revising the internal control system.
The appointment and dismissal of the audit supervisor are agreed upon by the audit committee first, then submitted to the board of directors for approval. The approval decision shall be reported through the Internet information system for future reference.
The qualifications of internal auditors shall meet the statutory qualifications, and the auditors shall fulfill the required hours of continued education. The name, age, educational background, experience, years of service, and training of internal auditors shall be reported through the Internet information system in accordance with the prescribed format for future reference.
2. The operation of the internal audit
The auditors of the Company uphold the spirit of detachment and independence, take an objective and impartial stand, and perform their duties with due diligence. The Company’s internal audit supervisor regularly reports audit results to independent directors and is required to attend and present at the board of directors meetings.
The audit work includes checking and reviewing the adequacy and effectiveness of the internal control system of each department of the Company and measuring the performance of operating activities. The scope of the audit includes:
- Develop an annual audit plan based on risk assessment.
- Supervise and urge all units to formulate internal control systems and strictly abide by them.
- Review the design and implementation of internal controls to reasonably ensure that operational objectives are achieved.
- Review the self-assessment work performed by each unit.
- Other laws and regulations should be implemented.
3. Appointment and dismissal, evaluation, and remuneration of internal audit
The appointment and dismissal, evaluation, and remuneration of auditors are handled in accordance with the Company’s “Recruitment and Appointment Management Regulations”, “Performance Appraisal Management Regulations”, and “Remuneration Management Regulations”.
