Internal Audit Organization

 
1.Purpose of Internal Audit
The purpose of establishing an internal audit in the company is to assist the Board of Directors and management in inspecting and reviewing the effectiveness of the internal control system and measuring the efficiency and effectiveness of operations. It also aims to provide timely improvement suggestions and management assistance to ensure the continuous and effective implementation of the internal control system.
 
2.Internal Audit Organization
The company’s Audit Department is subordinate to the Board of Directors. It includes a Chief Internal Auditor, whose appointment and dismissal are subject to the approval of the Audit Committee and are then reported to the Financial Supervisory Commission after being resolved by the Board of Directors. The Chief Internal Auditor is also required to attend the Board of Directors and Audit Committee meetings to report on audit affairs.
 
3.Operation of Internal Audit
a.Audit Scope:
The internal audit work includes inspecting and evaluating the appropriateness and effectiveness of the internal control system and the efficiency of operational activities within the company.
This includes:
• Verifying the effectiveness and completeness of the internal control system.。
• Ensuring all assets and liabilities are accurately presented and checking for any undisclosed assets or liabilities.
• Confirming the reliability and correctness of financial and operational information.
• Ensuring existing management systems comply with established policies, plans, procedures, contracts, and legal regulations.。
• Evaluating the performance and risk of operational units and auditing their performance in executing designated functions.
• Verifying the efficiency of asset protection, maintenance, and damage prevention to ensure proper and safe company asset management.
• Reviewing self-assessment reports from various units within the company.
 
b.Audit Subjects:
The audit subjects include the business operations responsible for by various units of the company.
 
c.Internal Audit Planning and Timing:
I.Planned Audits: The Audit Department conducts risk assessments before the end of each year based on legal standards, changes and trends in the operational environment of the company’s operational units, opinions of unit managers, and past audit cycles and findings. Based on these risk assessments, the next year’s audit plan is formulated and submitted to the Board of Directors for discussion and approval to serve as the basis for audit operations.
 
II.Special Audits: To ensure the effective implementation of the internal control system, special audit topics and timings are designated by senior management or the Chief Internal Auditor. Internal auditors are required to conduct various audit operations within the decided timeframe.
 
III. Self-Assessment Operations: To implement the company’s self-management and supervision mechanism and ensure the continuous effectiveness of the design and execution of the internal control system, each unit of the company conducts a self-assessment operation once a year. The Audit Department then reviews these self-assessment reports, along with improvements to any internal control deficiencies and irregularities found, as a basis for the Board of Directors and General Manager to evaluate the overall effectiveness of the internal control system and issue a statement on the internal control system.