The Company's internal audit is an independent unit that reports directly to the Board of Directors and presents internal audit business reports to the Board.
The main audit work is carried out in accordance with the audit plan approved by the Board of Directors, which is formulated based on identified risks. Special audits or reviews are also performed when necessary. By integrating the execution of general and special audits, the internal audit function provides management with an assessment of the operation of internal control mechanisms.
The main audit work is carried out in accordance with the audit plan approved by the Board of Directors, which is formulated based on identified risks. Special audits or reviews are also performed when necessary. By integrating the execution of general and special audits, the internal audit function provides management with an assessment of the operation of internal control mechanisms.
I. Organization for Internal Audit
The internal audit unit is staffed with one full-time auditor and one deputy, reporting directly to the Board of Directors. The primary responsibility is to examine and evaluate the effectiveness of the internal control system, assess operational efficiency, the reliability of financial statements, and compliance with relevant laws and regulations, and to provide timely improvement recommendations to ensure the ongoing and effective implementation of systems.
The appointment or dismissal of the head of internal audit must be approved by the Board of Directors and filed through the online information reporting system for record.
Internal auditors meet the statutory qualifications and continue professional development to reach the required training hours. Information such as their names, ages, education, experience, years of service, and training received is reported via the online information reporting system in the required format.
The appointment or dismissal of the head of internal audit must be approved by the Board of Directors and filed through the online information reporting system for record.
Internal auditors meet the statutory qualifications and continue professional development to reach the required training hours. Information such as their names, ages, education, experience, years of service, and training received is reported via the online information reporting system in the required format.
II. Operations for Internal Audit
- Internal auditors uphold independence and objectivity in executing their duties. In addition to regularly reporting audit activities to the Audit Committee, the head of internal audit also attends Board meetings to present reports.
- The internal audit unit drafts an annual audit plan and monthly/quarterly audit items based on risk assessment results, using them to examine the Company’s internal control system, attaching working papers and relevant materials to prepare audit reports.
- If any deficiencies are found during audits, the audited unit must propose corrective measures, which are disclosed in the audit report. Follow-ups on deficiencies and irregularities are conducted quarterly.
- The Company's internal departments and subsidiaries are required to conduct annual self-assessments of the effectiveness of their internal control systems. The internal audit unit then reviews these self-assessment reports, prepares an Internal Control System Statement in the required format, and submits it via the designated online platform within three months after the end of each fiscal year. The statement is also published in the annual report.
- By the end of February each year, the internal audit department reports the implementation status of the previous year's audit plan via the designated online platform.
- By the end of May each year, the internal audit departments reports improvements to deficiencies and irregularities in the internal control system identified in the previous year via the designated online platform.
- By the end of December each year, the internal audit department reports the audit plan for the following year via the designated online platform.
III. Appointment, Evaluation, and Compensation of Internal Auditors
The appointment, evaluation, and compensation of internal auditors are handled in accordance with the Company's relevant salary regulations and are submitted by the Remuneration Committee to the Board of Directors for approval.
IV. Communication Between Independent Directors, the Chief Audit Officer, and the CPA
The Audit Office regularly submits monthly audit reports to each independent director for review and reports the internal control audit progress at Board meetings each quarter, including completed audit items and irregularities, while reviewing the content of the internal control system. Any amendments are proposed by the Audit Office, approved by the Audit Committee, and then submitted to the Board of Directors for resolution.
At least once a year, the Company invites the signing CPA to attend Audit Committee meetings to communicate and discuss the review or audit results of the financial statements, significant accounting standards or interpretations, and updates to securities and tax regulations.
At least once a year, the Company invites the signing CPA to attend Audit Committee meetings to communicate and discuss the review or audit results of the financial statements, significant accounting standards or interpretations, and updates to securities and tax regulations.