Organization and Operation of Internal Audit Division
According to the Regulations Governing Establishment of Internal Control Systems by Public Companies issued by the Financial Supervisory Commission, R.O.C., public companies are required to set up an internal auditing unit attached to the board of directors, conduct regular and irregular business audits, conduct financial audits.
Purpose
Assisting the board and managers to examine and review deficiencies in internal control systems and measure the effectiveness and efficiency of operations, as well as provide timely recommendations for improvements to ensure continuous and effective functioning of the internal control systems.
Auditing department
The company's internal audit unit has a full-time internal audit supervisor who is appointed and dismissed by the board of directors. It is assigned a suitable full-time auditor in accordance with the company's scope, business situation, management needs, and relevant laws and regulations. A deputy i
Internal audit operation
- Auditing department should adopt to changes in environment to review design of internal control systems irregularly.
- Internal auditing department shall formulate annual audit plans based on the results of the risk assessment and the same should be passed by the Boards of Directors.
- The inspection result of audit items should be summarized as report and submitted to Board Audit Committee and the Board of Directors.
- The audit findings should be followed up and a report should be submitted to independent directors for perusal on a quarterly basis.
- The Audit Department annually reviews the self-assessment reports of the company and its subsidiaries, and notes internal control deficiencies and improvements. The board of directors and president evaluate the effectiveness of the overall internal control system and issue an Internal Control System Statement to ensure that the design and implementation of the internal control system achieve the following three objectives: (1)Effectiveness and efficiency of operations. (2)Reliable, timely, and transparent reports that are in compliance with relevant regulations. (3)Compliance with relevant laws and regulations.
The Audit Department completes the online reporting of the following specified items within the time limit specified by the FSC.
| Period of Declaration | Method of Declaration | Declaration Content |
|---|---|---|
| Before the end of January each year | Online | List of internal auditors and details of training for internal auditors |
| Before the end of February each year | Online | Implementation of the previous year’s audit plan |
| Before the end of March each year | Online | Internal Control System Statement |
| Before the end of May each year | Online | Internal control deficiencies and improvements as noted in the internal audit of the previous year |
| Before the end of December each year | Online | Audit plan for following year |