Internal Audit Organization and Operation
1. The internal auditing of the company assist the board of directors and management in examining and reviewing deficiencies in the internal control system, measuring the effectiveness and efficiency of operations, and providing timely recommendations for improvement. This ensures that the internal control system is continuously and effectively implemented and serves as the basis for reviewing and revising the internal control system.
2. The company’s internal audit room is under the authority of the board of directors and is staffed with an audit supervisor and dedicated internal audit personnel, with a designated deputy in place.
3. The company’s internal audit unit formulates an annual audit plan based on risk assessment results, which must be approved by the board of directors.
4. The company’s internal auditors should fully communicate with the audited units regarding the results of the annual audit items. Any deficiencies or abnormal findings related to the internal control system should be truthfully disclosed in the audit report. After the report is reviewed, follow-up actions should be taken and documented in a tracking report, at least quarterly, until improvements are confirmed, ensuring that the relevant units have promptly taken appropriate corrective actions.
5. After the audit and follow-up reports have been reviewed, the company shall deliver the audit items for review by all independent directors by the end of the month following the completion of the audit.
6. The purpose of the company’s self-assessment of the internal control system is to implement the company’s self-supervision mechanism, respond promptly to changes in the environment, adjust the design and execution of the internal control system, and improve the audit quality and efficiency of the internal audit room. The scope of the self-assessment should cover the design and implementation of all types of internal control systems within the company.
7. The company s each internal unit and subsidiary to conduct a self-assessment at least once a year. The internal audit unit will then review the self-assessment reports of each unit and subsidiary, along with the improvement status of deficiencies and abnormal findings identified by the audit unit. This will serve as the main basis for the board of directors and the general manager to assess the overall effectiveness of the internal control system and issue the internal control system statement.
8. The company annually assess the effectiveness of the design and implementation of the internal control system, and in accordance with regulatory requirements, will prepare an internal control system statement. This statement must be publicly disclosed on a designated website within three months after the end of each fiscal year.
The internal audit office is an independent unit, affiliated with the board of directors, responsible for the implementation of the audit business, and the company assigns full-time auditors. The appointment and dismissal of the audit supervisor are all approved by the board of directors; the internal auditors perform their duties in an objective and fair manner, and the audit supervisor also attends the report of the board of directors in accordance with the regulations.
In the fourth quarter of each year, the audit plan for the next year is drafted based on the results of the risk assessment, and then implemented in accordance with the audit plan approved by the board of directors, and the audit results are made into an audit report, and the internal audit deficiencies found during the audit process and the improvement measures of the responsible units, and submit it to the chairman for review to ensure the continuous and effective implementation of the internal control system. Annual audit plan, audit personnel roster and training hours, implementation of annual audit plan, internal control statement, internal control system deficiencies and abnormalities improvement, etc. are reported to the competent authority every year in accordance with laws and regulations. There are no major deficiencies in the internal audit in 2023, and all related abnormal improvement items have been completed.
