Internal Audit
Internal Audit is designed to assist the Board of Directors and top management on reviewing the internal control mechanism, and further providing the reasonable assurance regarding the achievement of objectives in the following categories:
1. Effectiveness and efficiency of operations.
2. Reliability of financial reporting.
3. Compliance with applicable laws and regulations.
The Internal audit function is an independent unit that reports directly to the Board of Directors and the internal audit function head plays an important role in planning and working on the annual audit projects. Besides, the internal audit function head report the auditing findings in the quarterly Board of the Directors meetings and briefs to the Audit Committee on a regular basis.
The charter of Internal Audit defines the process and procedure for performing the internal audits. Internal audit shall include all operations of the company and its subsidiaries. The majority of the audit work is executed according to the annual audit plan approved by the Board of Directors. Such plan is taken into account risks that have been identified. The internal auditor(s) provide the auditing finding reports with the corrective action requests to the auditee and management level. The internal auditor(s) also perform the continue auditing and provide the tracing report until the corrective actions are completed.
Besides, the internal audit unit evaluates and assesses the results of self-assessment by each departments and subsidiaries, so to ensure the effectiveness of the internal control mechanism.
Descriptions of the communications between the Independent Directors, the internal auditors, and the independent auditors
1. The Company’s internal auditors have attended and presented the results at the quarterly Audit Committee and Board of Directors meetings. The internal auditors have sent the audit and follow-up reports to the Independent Directors for review periodically.
2. The Company’s independent auditors have attended the Audit Committee and Board of Directors meeting and discussed the financial results.
3. The communications between the Independent Directors, the internal auditors, and the independent auditors are listed in below table:
|
Date |
Matters of the communications |
Suggestion and action |
|
2022/02/10 |
|
|
|
2022/05/03 |
The Company's internal audit report for Q1 2022.
|
All independent directors had no objection. |
|
2022/08/02 |
The Company's internal audit report for Q2 2022.
|
All independent directors had no objection. |
|
2022/11/01 |
|
|
|
2023/02/14 |
|
|
|
2023/05/03 |
The Company's internal audit report for Q1 2023.
|
All independent directors had no objection. |
|
2023/08/01 |
The Company's internal audit report for Q2 2023.
|
All independent directors had no objection. |