Internal Audit
Internal Control System and Internal Audit
Our company has established and implemented its Internal Control System and Internal Audit in full compliance with the “Regulations Governing the Establishment of Internal Control Systems by Public Companies” promulgated by the Financial Supervisory Commission (FSC) of Taiwan.
The primary objective of our internal audit function is to assist the Board of Directors and management in examining and reviewing potential deficiencies in the internal control system, and to promote sound corporate operations. Through timely recommendations for improvement, we ensure that the internal control mechanisms are effectively and continuously implemented, serving as a foundation for ongoing evaluation and enhancement.
The internal control system is designed to reasonably ensure the achievement of the following goals:
● Compliance with applicable laws and regulations
● Reliability, timeliness, and transparency of financial and operational reporting, in line with regulatory standards
● Operational efficiency and effectiveness
Organization and Responsibilities
Organization of the Audit Department
The Audit Office of the Company is subordinate to the Board of Directors. It is staffed with one internal auditor responsible for conducting internal audit tasks for the Company and its branches. In accordance with relevant regulations, audit reports are submitted to the Board of Directors and the Audit Committee.
The appointment and dismissal of the internal auditor shall be approved by the Audit Committee and resolved by the Board of Directors. The internal auditor meets the statutory qualifications and continues professional education in compliance with the legally required hours.
Responsibilities of the Audit Department
● Promote, revise, and update the internal control system, and coordinate with relevant responsible units.
● Draft, review, and file the annual audit plan.
● Execute the annual audit plan and various audit tasks, provide recommendations for improvements, review and follow up.
● Present audit reports to the Board of Directors and the Audit Committee.
● Conduct self-assessment of the internal control system and file the Statement on Internal Control.
● Conduct special audits and reviews as instructed by management or as necessary.
Operation Mechanism
Regular audits are conducted in accordance with the annual audit plan. Each year, audit items and frequency are determined based on the requirements set by the Financial Supervisory Commission (FSC) and a risk assessment. An audit work plan is submitted and executed upon approval by the Board of Directors.
The internal audit evaluates the internal control system by assessing the effectiveness of current policies and procedures, their level of compliance, and their impact on operational activities. Improvement recommendations are provided in a timely manner. In the event of deficiencies or irregularities, follow-up audits are conducted to track corrective actions, and findings are compiled into reports. After review and approval, the reports are submitted to the Audit Committee by the end of the following month for inspection, and regular reports are also made to both the Audit Committee and the Board of Directors.
Ad-hoc audits are carried out under the instruction of management or based on business needs.
The internal audit defines audit items, schedule, audit procedures and methods, relevant regulations as the basis for auditing, and the working paper format used during audits. Audits are conducted primarily using sampling methods.
