internal audit

Overview

Assist the board of directors and management to examine and review deficiencies in the internal control system and measure the effectiveness and efficiency of operations, the reliability of financial reporting and compliance with relevant laws, and provide timely improvement suggestions to ensure the continued and effective implementation of the internal control system.

organize

• Internal audit is an independent unit directly subordinate to the board of directors. It is dedicated to the work of internal audit. According to the company's size, business conditions, management needs and other relevant laws and regulations, an audit supervisor is assigned with the appropriate number of full-time internal auditors who are qualified and appropriate.
  The appointment and removal of the internal audit manager must be approved by the audit committee and submitted to the board of directors for resolution. In addition, the qualifications of internal auditors should meet the legal qualifications, and they should continue to study for the specified number of hours.

Operational situation

• Internal auditors uphold the spirit of detachment and independence, and perform their duties in an objective and impartial manner. In addition to reporting regularly to the board of directors, they also report to the chairman of the board and the audit committee quarterly or when necessary.
  
  The audit work is mainly carried out based on the annual audit plan approved by the board of directors. The annual audit plan is formulated based on the risk assessment results, and special audits are carried out as necessary. Deficiencies and abnormalities in the internal control system discovered during the audit will be tracked and reported regularly to ensure that relevant units have taken appropriate improvement measures immediately.
  
  Supervise all units and subsidiaries to regularly self-assess the implementation of the internal control system, review their self-assessment reports, and review the improvement of internal control deficiencies and abnormal matters discovered by the audit unit, as the board of directors and general manager evaluate the effectiveness of the overall internal control system nature and the main basis for issuing a statement on the internal control system.
  
  The internal auditors shall truthfully disclose the deficiencies and abnormal matters in the internal control system discovered by the internal audit work, listed in the internal control system statement, self-assessment and accountant's project review in the audit report, and shall be reported in the report Then follow up and prepare quarterly tracking reports to confirm that relevant units have taken appropriate improvement measures in a timely manner and list them as important items in the performance appraisal of each department. After the audit report and follow-up report are reviewed, they will be submitted to the Audit Committee for review before the end of the following month after the audit project is completed. If internal auditors discover major violations or the company is in danger of suffering major damage, they will immediately prepare a report and notify the board of directors and the audit committee.