Audit Scheme

The Internal Audit is an independent unit under the Board of Directors; Job function includes monthly performance report to the Audit Committee, as well as a summarized report in the Board of Directors routing meeting.

Internal Audit
Internal Audit

Duty of Internal Audit

Organizes and develops internal audit systems based on the internal control system in various departments, reviews the internal control for various working procedures, assists the Board of Directors and senior management to check and review weakness in internal control system and evaluate the results and efficiency for operations, providing timely recommendations for improvement to ensure the sustainably effective implementation for internal control system, in which internal control system can be accordingly reviewed and amended.

Operation of Internal Audit

The annual audit plan is to be organized based on the “Regulations Governing Establishment of Internal Control Systems by Public Companies” and risk assessment, approved by the Board of Directors. Audit is primarily executed based on audit plan of the year, for audit result, in addition to issue the audit working papers and audit reports, comprehensive communication with supervisor of the audited department on audit result is necessary to finalize relative projects and date for improvement. Moreover, actions for improvement are to be followed by audit staff for the effective implementation of internal control. Internal audit regularly/appropriately provides reports on implementation status and result to the Board of Directors and Audit Committee for the fulfillment of corporate governance. Moreover, internal audit reviews the self-check results implemented by various departments to ensure quality of the implementation, submitting the self-check results to Chairman, the Board of Directors and Audit Committee.

Communication Principle and Policy between Independent Directors and Internal Audit Supervisor

Internal audit supervisor submits quarterly reports to independent Directors on the implementation progress of internal audit; in case of any major material violation or any likelihood of material damage to the company, relevant meetings may be called at any time. 

Date Communication Issues Recommendation of Independent Directors and Result
2019/10/24 June to August, 2019 – Auditing Report
2020 Annual Auditing Plan
Independent Directors quizzed the handling approaches of major issues and proposed performing measures.
2019/07/26 March to May, 2019 – Auditing Report  
2019/04/25 Dec. 2018-Feburary.2019 – Auditing Report  
2019/01/25 September to November, 2018 – Auditing Report  
2018/10/25 June to August, 2018 – Auditing Report
Annual Auditing Plan
Independent Directors quizzed the handling approaches of major issues and proposed performing measures.
2018/07/23 March to May, 2018 – Auditing Report  
2018/04/24 December, 2017 to February, 2018 – Auditing Report  
2018/01/26 September to November, 2017 – Auditing Report  

Communication Principle and Policy between Independent Directors and the Accountant

The Accountant submits to independent Directors auditing issues such as results of financial reports, recently amended securities and taxation regulations, as well as the forthcoming applicable International Financial Reporting Standards at least twice a year, also irregularly reaching for communication with independent Directors if necessary.

Date Communication Issues Recommendation of Independent Directors and Result
2019/07/29 1. Accountant expressed the 2019 First Half-Year Financial Statement
2.Carry on discussion on the recently amended Company Act, regulations related to Securities and Exchange Act, as well as the updated taxation affairs.
3. Disclose draft of The Management, Utilization, and Taxation of Repatriated Offshore Funds Act 
4.Carry on communication and discussion on issues proposed by the participants.
Independent Directors shall challenge impact range regarding to regulations change.Accountant shall feedback against the issues which independent directors concerned.
2019/01/25 1. Accountant expressed the 2018 Financial Statement
2. Express evaluation progress of IFRS 16 Lease implementation.
3.Carry on discussion on the recently amended Company Act, regulations related to Securities and Exchange Act, as well as the updated taxation affairs.
4. Introduce 6th Corporate Governance Evaluation System.
5.Carry on communication and discussion on issues proposed by the participants.
Independent Directors shall challenge impact range regarding to regulations change.Accountant shall feedback against the issues which independent directors concerned.
2018/07/23 1. Accountant expressed the 2018 First Half-Year Financial Statement and discussed how accounting principle apply .
2.Carry on discussion on the recently amended Company Act, regulations related to Securities and Exchange Act, as well as the updated taxation affairs.
3.Carry on communication and discussion on issues proposed by the participants.
Independent Directors shall challenge impact range regarding to regulations change.  Accountant shall feedback against the issues which independent directors concerned.
2018/01/26 1. Accountant expressed the 2017 First Half-Year Financial Statement and discussed how accounting principle apply .
2. Carry on discussion on the IFRS15/IFRS9 effective in 2018 and the IFRS16 becoming effective in 2019.
3. Carry on discussion on amended regulations related to Securities and Exchange Act, as well as taxation.
4. Carry on communication and discussion on issues proposed by the participants.
Independent Directors inquired company about the effects of forthcoming applicable IFRS and recently amended laws in securities regulation and taxation ; Accountant replied to the issues quizzed by the independent Directors.
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