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. 

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.