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Internal Audit

Internal Audit

Internal Audit System

The design, operation and auditing activities of the Company's internal control system are in compliance with the Regulations Governing Establishment of Internal Control Systems by Public Companies and other related regulations.

Purpose of Internal Audit

The purpose of internal audit is to assist the Board of Directors and the management team in inspecting and reviewing defects of the internal control system, the effectiveness and efficiency of the operation, reliability of financial reports and compliance with laws and regulations. Recommendations are made timely to ensure sustained effectiveness of the internal control system and as a reference for further improvement, thereby helping the operation and governance of the Company.

Organization of Internal Auditing Office

The Internal Auditing Office reports directly to the Board of Directors and performs the duties of internal audit. The number of qualified auditors is determined based on the Company’s size, operation and management as well as relevant laws and regulations. The office has an internal audit officer and a full-time auditor.

The appointment and discharge of internal audit officer shall be approved by the Board and reported to the Financial Supervisory Commission (FSC) through the internet-based information system by the 10th of the following month.

A person is not qualified for the position of internal audit officer unless he/she holds relevant qualifications/certifications and receives the amount of training required by the laws. Details of the internal audit officer, including the name, age, education, work experience, number of years in service as well as training received shall be reported to the FSC through the internet-based information system in the prescribed format by the end of every January.

Operation of Internal Auditing Office

Internal auditors shall perform tasks independently and objectively, and periodically report to the Audit Committee. The internal audit officer is required to attend and report at Board meetings.

  • Internal auditing activities are executed according to the items, schedules, procedures and processes set out in the internal audit implementation rules. Internal auditors shall conduct on-site audits regularly and when the need arises and ask the audited units to provide documents, books of accounts and certificates. The audit of specific items is required when deemed necessary.
  • The Internal Auditing Office shall devise the annual audit plan and identify the monthly/quarterly audit items according to the outcomes of risk assessment in order to review the Company's internal control system accordingly. Working paper and relevant document shall be attached to the audit report.
  • The Company's departments and subsidiaries are required to inspect the effectiveness of the internal control system on an annual basis. The Internal Auditing Office would then review these self-inspection reports and prepare the statement of internal control system in the prescribed format to be publicly announced and filed in the website designated by the FSC as well as included in the annual report within three months following the end of each fiscal year.
  • Internal auditors shall faithfully disclose in audit reports any defects and irregularities found during internal audit activities, stated in the internal control system statement, or identified during self-conducted audits or audits conducted by CPAs. Follow-up reports shall be prepared on a regular basis to ensure necessary measures have been taken and as a key indicator for performance evaluation at each department.
  • Once the audit or follow-up reports are submitted, they shall be presented to the Audit Committee members and Independent Directors by the end of the next month following the completion of audit item. Any material breach or the possibility of substantial damage to the Company shall be submitted immediately in the form of a report and the Audit Committee and Independent Directors shall be notified.
  • Internal auditors shall report the following items to the FSC through the internet-based information system in prescribed formats: a) audit plan of the following fiscal year by the end of each fiscal year; b) execution of the audit plan of the previous fiscal year within two months following the end of each fiscal year; c) improvement of defects and irregularities of internal control system identified in the previous fiscal year within five months following the end of each fiscal year.