The company has established an internal audit unit under the Board of Directors, which includes a dedicated internal audit department comprising one manager and several audit personnel.
In addition to reporting at regular meetings of the Board of Directors and the Audit Committee, the internal audit unit also reports to the Chairman and the Audit Committee on a quarterly basis and as needed.
The appointment, dismissal, and compensation of the internal audit manager are decided by the Audit Committee and approved by the Board of Directors. According to Article 3 of the company’s Corporate Governance Best Practice Principles, the appointment, dismissal, performance evaluation, and compensation of internal audit personnel should be reported to the Board of Directors or approved by the Chairman upon the recommendation of the audit manager.
The purpose of the internal audit is to assist the Board of Directors and management in inspecting and reviewing the deficiencies in internal control systems, assessing the effectiveness and efficiency of operations, and providing timely improvement recommendations. This ensures the continuous and effective implementation of internal control systems and serves as a basis for reviewing and correcting these systems.
The scope of internal audit activities covers all control operations related to business activities and adheres to the relevant industry regulations, as well as the supervision of subsidiary operations.
In accordance with the annual audit plan approved by the Board of Directors, regular planned audits are conducted, and special project audits are carried out as needed based on business requirements.
Based on the control operations of the internal control system's operational cycle, audit tasks are performed with an objective and impartial stance. Any identified deficiencies or anomalies in the internal control system are disclosed in the audit report and submitted to the responsible manager for timely implementation of appropriate improvement measures. The report is reviewed by the independent directors and the chairman by the end of the following month and a follow-up report is prepared at least quarterly to ensure the completion of improvement measures.
