Internal audit organization and its implementation
Organization of internal audit
Our internal audit is an independent unit, directly reporting to the Board of Directors. The appointment and removal of the audit manager are subject to approval by the Board of Directors.
Internal audit operation
- The formulation and implementation of the annual audit plan: Based on the risk assessment results, an annual audit plan (including items to be audited each month) shall be formulated and approved by the Board of Directors; the same applies when it is amended.
- Project audit: When a requesting unit raises an issue, a senior executive instructs it, or an audit operation detects anomalies, it is necessary to thoroughly understand the matter and submit a report as a basis for improvement measures.
- Audit Report:
(1) Auditors should communicate fully with the audited unit on the audit results of the annual audit items. Any deficiencies or abnormalities in the internal control system found during the audit should be disclosed in the audit report. After the report is reviewed, follow-up should be made at least quarterly until improvement is achieved, so as to confirm that the relevant unit has taken appropriate improvement measures in a timely manner.
(2) After the audit report and follow-up report are reviewed, they shall be delivered to each supervisor for review by the end of the month following the completion of the audit project.
(3) If auditors discover any major violations or if the company is at risk of serious damage, they shall immediately prepare a report and notify all supervisors.
(4) Auditors should uphold an independent and impartial spirit, diligently perform their duties with objectivity and fairness, and exercise due professional care. In addition to regularly reporting on audit work to the various auditors, the audit supervisor should also attend board meetings to report.
