INVESTOR

Corporate Govermance

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Internal Audit Organization and Operation Regulations

Establishment

The Company's internal audit unit is subordinate to the Board of Directors. Appropriate full-time internal audit personnel should be deployed in accordance with the company's size, business conditions, management needs and other relevant laws and regulations. The internal audit unit shall have a supervisor, who shall be appointed or removed by the board of directors.

Personnel Appointment, Removal and Evaluation

The appointment, removal, evaluation and salary of internal auditors shall be signed by the audit supervisor and reported to the chairman of the board for approval.

Purpose

To assist the board of directors and managers to examine and review deficiencies in the internal control system and measure the effectiveness and efficiency of operations, and provide timely improvement suggestions to ensure the continued and effective implementation of the internal control system and serve as a basis for review and revision of the internal control system.

Responsibilities

  1. It should uphold the spirit of detachment, independence, impartiality and objectivity and continuously inspect and evaluate the appropriateness, effectiveness and performance of the internal control system, risk management and various management systems as well as the performance of operating activities.
  2. An annual audit plan should be drawn up based on the risk assessment results, including the scope and items that should be audited every year, based on which the company's internal control system can be checked, and working papers and relevant information should be attached to prepare an audit report.
  3. The self-inspection report of the company's internal control system should be reviewed as a basis for the board of directors and managers to evaluate the rationality and effectiveness of the overall internal control system and issue a statement on the internal control system.
  4. Internal auditors and the units being inspected should fully communicate on the results of annual audit projects. For deficiencies and abnormal matters in the internal control system discovered during the audit, an audit report should be disclosed truthfully and followed up after the report is reviewed. Follow-up reports should be made at least quarterly until improvements are made to ensure that the unit under inspection has taken appropriate measures in a timely manner. Improvement measures.
  5. After the audit report and follow-up report have been reviewed, they should be delivered to each supervisor and independent director for review before the end of the month following the completion of the audit project. If a major violation of regulations is discovered or the company is in danger of suffering major damage, a report should be made immediately and reviewed, and all supervisors and independent directors should be notified.
  6. Every year, in accordance with the format prescribed by the Securities and Futures Bureau of the Financial Supervisory Commission of the Executive Yuan, the following matters are reported using the Internet information system for future reference:
    • Submit the "Annual Audit Plan" for the next year before the end of December.
    • Submit the current year's "Roster of Internal Auditors", "Roster of Agents of Internal Auditors" and the information and hours of training received, before the end of January.
    • Submit the "Annual Audit Plan Implementation Status" of the previous year before the end of February.
    • Submit the "Internal Control System Statement" for the previous year before the end of March.
    • Submit the "improvement of internal control system deficiencies and abnormal events" of the previous year before the end of May.

Communication Status between Independent Directors, Supervisors, Internal Audit Managers and CPAs

Communication Method:

  1. The audit supervisor and CPA will communicate directly with the independent directors as necessary.
  2. The meeting is a communication and discussion meeting between Independent Directors and CPAs, where the accountants explain and communicate to the Independent Directors the process of reviewing the company's annual financial statements, scope matters, identification of significant risks and review conclusions. CPAs also attend the quarterly Board of Directors and audit committee to provide auxiliary explanations and communications when necessary.
  3. The company sends audit reports to independent directors for review by email on a monthly basis, and the audit supervisor regularly attends the board of directors to report on the execution of the audit business. In addition to regularly attending the audit committee and the board of directors every quarter (at least 4 times a year), the audit supervisor and CPAs also communicate individually with the independent directors at least once a year on matters such as audit business summary reports and financial review results. Regarding the implementation status, Results and suggestions have been fully communicated.
Communication Status between Independent Directors, Supervisors, Internal Audit Managers and CPAs
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