Organization and Operating of Internal Audit
Organization for Internal Audit
A. Internal Audit is an independent unit that directly reports to the Board of Directors.
B. One audit officer and one auditor are designated to Internal Audit of the Company, the appointment and dismissal for audit officer shall be exercised by agreement representing a majority of all members of the Board of Directors, and all audit personnel shall meet the criteria required by competent authorities.
C. In addition to periodically reporting to independent directors on the audit summary, Internal Audit shall also attend the meetings of the Board of Directors to submit audit reports.
Operation of Internal Audit
A. Internal Audit shall formulate annual audit plan with audit items identified based on results of the risk assessment, implementing after being approved by the Board. Timely suggestions for improvement are provided to ensure the consistently effective implementation of internal control systems, special audits may be conducted as deem appropriate.
B. According to the stipulations, Internal Audit shall review the self-assessment reports prepared by various departments of the Company to check implementation of various business operations and relevant documentations, consolidating the result from self-assessment and submitting reports to the President and Board of Directors.
C. Continuous follow-up and review shall be conducted for deficits identified by competent authorities, accountants, and Internal Audit.
Appointment and Dismissal Evaluation for Internal Audit
After approval from the President with various reviewing and permitting authorities, based on relevant job rank grading and the Regulation Governing Employment and Promotion, the Company’s internal audit staff are thus appointed. Based on the Regulation Governing Performance Evaluation, internal audit staff are reviewed and evaluated by audit supervisor, with reports summitted to the President at the end of each year, the relevant Rules have been included in the Company’s Employee Intranet Portal (EIP)/Corporate Regulations.