The Company established an internal audit unit under the board of directors to assist the board of directors and mangers in inspecting and reviewing defects in the internal control systems as well as measuring operational effectiveness and efficiency, and shall make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction. All subsidiaries are included in the internal audit scope.
The implementation of the internal audit includes two main parts:
1. Formulating the annual audit plan based on the goal of the Company and the results of the risk assessment. The annual audit plan shall require the approval of the audit committee and shall be submitted to the board of directors for a resolution. The internal auditors shall be detached, independent, objective, and impartial, in faithfully performing their duties and shall exercise due professional care, and in addition to reporting their audit operations to the board of directors meeting on a regular basis, the audit operations are also reporting to the Audit Committee and Chair monthly or when necessary. Any defects and irregularities will be follow up the status of corrections.
2. Reviewing the self-inspection reports prepared by all departments, and submit the self-assessment reports, together with the reports on the correction of defects and irregularities of internal control systems discovered by its internal audit departments, to serve as the primary basis for the board of directors and general manager to evaluate the overall efficacy of all internal control systems and to produce Internal Control System Statements.
There are 2 full time employees dedicated to Internal Audit, including one director and one staff member.