Internal Audit Organization
The Company’s Internal Audit is an independent unit directly reporting to the Board of Directors, dedicated exclusively to internal audit tasks. The Chief Internal Auditor regularly reports audit activities to the Audit Committee and also attends Board meetings to provide updates.
The Internal Audit Department is staffed with one full-time auditor whose qualifications comply with regulatory competency requirements and who continuously completes the mandated continuing education hours.
The appointment and removal of the Chief Internal Auditor must be approved by the Board of Directors. Information regarding the internal auditor’s name, age, educational background, experience, years of service, and training received is reported annually by the end of January through the designated internet information system for record-keeping purposes.
Internal Audit Operations
The Internal Audit unit upholds a spirit of independence and impartiality, exercising due professional care to audit and evaluate the implementation of the Company’s internal control systems and assess operational efficiency. Based on audit findings, the unit issues objective reports and timely improvement recommendations to ensure the continuous and effective implementation of internal controls, serving as a basis for reviewing and revising the internal control systems. Audit activities are primarily conducted according to an audit plan approved by the Board of Directors. This audit plan is formulated based on four major dimensions: compliance with stringent regulatory requirements, audit frequency, results of risk assessments, and concerns raised by directors and management. Additionally, special audits or follow-up reviews are conducted as necessary. Audit reports include working papers and relevant documentation. Internal control deficiencies and anomalies identified during audits are disclosed truthfully in the audit reports submitted for review, and are tracked until corrective actions are completed, ensuring that relevant departments take appropriate and timely remedial measures. Completed audit items are submitted to each member of the Audit Committee for review by the end of the month following the audit’s completion
Internal Control Self-Assessment
The Internal Audit unit reviews the self-assessment reports regularly conducted by each internal department. Based on the review results, together with the status of improvements on internal control deficiencies and anomalies identified by the Internal Audit unit, a comprehensive internal control self-assessment report is completed. This report serves as the basis for the General Manager and the Board of Directors to evaluate the overall effectiveness of the Company’s internal control system and to issue a statement on the internal control system.
The internal control system statement is publicly disclosed and filed on the designated website within the timeframe stipulated by regulatory authorities and is also published in the Annual Report.