Internal Audit
Purpose of Internal Audit
The purpose of internal audit is to assist the Board of Directors and management in examining and reviewing deficiencies in the internal control system, as well as in assessing the effectiveness and efficiency of operations. Timely recommendations for improvement are provided to ensure the continued effective implementation of the internal control system and to serve as a basis for reviewing and revising the system.
Establishment of the Internal Audit Division
The internal audit division of the Company reports directly to the Board of Directors. In accordance with the Company’s size, business activities, management requirements, and relevant laws and regulations, qualified and appropriate full-time internal audit personnel are assigned. Currently, the Company has one full-time internal auditor. The appointment and dismissal of the internal audit supervisor must be approved by the Audit Committee and resolved by the Board of Directors.
Execution of Internal Audit
The internal auditors shall formulate an annual audit plan based on risk assessment results, including monthly audit items. The annual audit plan must be faithfully implemented to assess the Company’s internal control system, and audit reports shall be prepared with supporting work papers and relevant documentation. Any internal control deficiencies or irregularities identified through the audits must be truthfully disclosed in the audit reports and followed up quarterly through follow-up reports until improvements are completed. After approval, audit and follow-up reports shall be submitted to the independent directors for review by the end of the month following the completion of the audit.
Position and Attitude of Internal Auditors
The internal auditors shall maintain an objective and independent attitude, perform their duties with impartiality, and exercise due professional care. In addition to regularly reporting audit matters to independent directors, the audit supervisor shall also attend Board meetings to present audit-related reports.
Appointment and Dismissal of Internal Auditors
The appointment, evaluation, and remuneration of internal audit personnel are handled in accordance with internal personnel regulations such as the “Personnel Selection and Appointment Measures,” “Salary Operation Guidelines,” and “Grading and Promotion Management Measures” Performance evaluations are conducted twice a year. All matters related to appointment, evaluation, and compensation are processed through the approval workflow and submitted by the audit supervisor to the Chairman for final approval. These internal procedures have been disclosed in the Company’s internal policy repository.