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.
Communications between the independent directors and internal auditing officer
1.The independent directors and the internal auditing officer individually communicate on audit operations every month. The internal auditors perform the audits based on the annual audit plan and follow the instructions guided by the Audit Committee Convener to strengthen the audits. Furthermore, the completed audit reports would be delivered to the independent directors by next month.
2.The internal auditing officer reports the audit operations in meetings of the Audit Committee and meetings of Board of Directors quarterly.
Communications between the independent directors and the internal auditing officer：
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Date |
Matters of the communications |
Suggestion and action |
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February 5, 2024 (9th meeting of the 3rd-term Committee) |
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April 30, 2024 (11th meeting of the 3rd-term Committee) |
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July 30, 2024 (12th meeting of the 3rd-term Committee) |
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October 31, 2024 (13th meeting of the 3rd-term Committee) |
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February 14, 2025 (17th meeting of the 7rd-term Committee) |
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