ORGANIZATION AND PURPOSE OF INTERNAL AUDIT
IMPLEMENTATION OF INTERNAL AUDIT
Functions and powers of internal audit
- The job scope of the internal audit unit is to confirm whether or not the governance, risk management and control processes designed and presented by the management are appropriate and the operation of such is able to ensure the following:
(1)Risk is properly identified and managed.
(2)Interact with corporate governance units as needed.
(3)Important financial, management and operational information is correct, reliable and timely.
(4)Employee behavior follows policies, standards, procedures, and related regulations.
(5)The acquisition, use and protection of resources are in line with the principles of economy, effectiveness and appropriateness.
(6)Project, plan and goal are achieved.
(7)Enhance quality and continuous improvement in the company's control processes.
(8)Major legal issues affecting the Company are properly identified and responded to.
- During the audit process, opportunities to improve management controls, profitability, and company image may be identified and communicated to the appropriate management.
- The supervisor and members of the internal audit unit shall have the following authority:
(1)Unrestricted access to all units, records, property and personnel related to the audit operation.
(2)Full communication with the Board of Directors (Audit Committee) / Supervisor.
(3)Allocate audit resources, determine audit frequencies, select audit targets, determine the scope of audit and apply various technologies required to achieve audit objectives.
(4)Obtain necessary assistance from personnel in the audited unit as well as other specific services inside and outside the Company.
Mission of internal audit
- In order to perform duties, the chief audit executive, CAE shall bear the following responsibilities toward the management and the board of directors.shall bear the following responsibilities toward the management and the Board of Directors (audit committee)/supervisors:
(1)Assess the appropriateness and effectiveness of the Company's operational control and risk management processes in various fields covered by the internal audit tasks and job scope.
(2)Report important issues related to operational control processes of the Company and subsidiaries thereof, including improvement on those processes and providing information addressing such issues.
(3)Regularly report on the implementation and results of annual audit plan and the adequacy of audit resources.
(4)Coordinate and supervise control and monitoring functions covering risk management, compliance, safety, statutes, ethics, environmental protection and external auditing.
- CAE - and members of the internal audit unit shall be responsible for the following：
(1)Develop a risk-based and flexible annual audit plan that includes risks and control matters concerned by the management and submit the plan to the Board of Directors (Audit Committee)/supervisors for approval.
Develop a risk-based and flexible annual audit plan that includes risks and control matters concerned by the management and submit the plan to the Board of Directors ，Audit Committee for approval.
(2)Implement the approved annual audit plan, including specific tasks or plans required by the management and the Board of Directors ，audit committee.
(3)Maintain a team of professional auditors with sufficient knowledge, skills, experience and professional licenses to comply with the requirements of this rule.
(4)Provide advisory services to assist the management in achieving their goals, including services such as facilitation, process design, training and consulting.
(5)Summarized results of audit activities shall be regularly reported to the Board of Directors ，audit committee and the management.
(6)Assist the Board of Directors， Audit Committee to keep abreast of latest trends and good practices in internal audit.
(7)Provide the Board of directors ，audit committee with important measurement targets and results related to audit operation
(8)Assist in investigating major suspicious fraud in the Company and report the results to the management and the Board of Directors (audit committee) /supervisors.
(9)Consider appropriately the scope of work of the supervisory authority and external auditors to determine the optimal audit scope of the Company under a reasonable overall cost.