The organization of internal audit

According to the guidelines of public company internal control system, we set up the internal audit Dept. under board of directors and assign dedicated internal audit member based on company scale, business operation, company management and other regulations to assist board of directors and managers achieving the target of corporate operation, announcement and regulations compliance.

The internal auditor shall report to the independent directors once discover potential regulation violation or damage to ensure company management.

According to the guidelines of public company internal control system, we set up the substitute of internal auditor to comply the audit. The appointment and dismissal of Audit Dept. manager shall be approved by board meeting. The appointment, dismissal and salary remuneration of Audit Dept. staff shall be approved by chairman.

The procedure of internal audit

The major purpose of internal control is to control the risk in a tolerable condition, so internal audit need to identify short and middle term target and the risk of target achievement and review if company establish the control procedure, if the routine work follow the procedure and if the deficiency is improved to secure company can achieve the target.

The Auditor need to set up the next annual audit plan before end of the year based on the risk assessment result and approved by board meeting. The audit plan shall cover the operation procedure and internal control of company and subsidiaries.

The function of internal audit

1. Establish internal audit system, target, responsibility and specification.
2. Draw up audit strategy and plan.
3. Evaluate and review internal control system design and operation and provide suggestion.
4. Review financial information is reliable, promptly, transparency and comply with the regulation.
5. Review if company operation follow the decree.
6. Review the internal control self-assessment report of company and subsidiaries and report to president and board meeting
7. Review the audit report and draft report.
8. Coordinate internal and external audit.
9. Attend and report audit business in board meeting.