Internal Audit

We established an effective internal control system based on the Company and its subsidiaries’ overall operation activities and its industry in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies”. We conduct reviews in time to respond to changes in the Company’s internal and external environment as well as to ensure that the system design and implementation remain effective.

The internal audit unit affiliated to the board of directors is an independent unit that reports directly to the board of directors. In addition to reporting in board routine meetings, the unit delivers specific reports to the Audit Committee, the chairman, and the president when necessary as the implement of spirit of corporate governance.

Auditing is mainly conducted in accordance with audit plans approved by the board of directors. Special auditing may be conducted as needed. The aforementioned general auditing and special auditing updates for the management on performance of the internal control system, and give the management another channel for acquiring up-to-date knowledge of existing or potential internal control defects. Internal auditors issue written audit reports and follow-up reports after reviewing audit plans to ensure that relevant units take appropriate improvement measures in a timely manner and submit the reports regularly to Independent Directors for review.

Internal auditors review internal control self-assessments conducted by individual units. A review will include checking if the process is completed and inspecting the documents to ensure the quality of execution. Self-assessment results, used in combination with internal control defects identified by the audit unit and improvement made to irregularities, provide a basis for making recommendations to the board of directors, the chairman, and the president when they issue the statement of internal control system.

The internal audit unit consists of full-time auditors. In accordance with the Corporate Governance Best Practice Principles, appointment, dismissal, performance review, and salary remuneration of internal auditors shall be implemented. The Corporate Governance Best Practice Principles are disclosed on the company’s official website.