I . The Internal Audit Organization
The company's audit division is under the jurisdiction of the Board of Directors, with an audit supervisor and a specialist. The appointment of the audit supervisor is approved by the Board of Directors. In addition to regularly reporting on audit activities to the Audit Committee, the audit supervisor is also reporting to board meetings.
II . Internal Audit Operations
(1) Execution of Audit Work
A. Every year-end, based on the results of risk assessments, the annual audit program for the following year is formulated and submitted for approval by the Audit Committee and the Board of Directors. It is then reported to the MOPS for reference.
B. Audit works are categorized into three types: regular, provisional, and special projects. Regular audits are conducted by audit personnel based on a planned schedule, while provisional and special projects are initiated based on instructions from the company's Board of Directors, Chairman, Directors, and senior management.
C. Audit works are executed in accordance with pre-planned audit focus, scope of work, methodologies or procedures, and personnel assignments.
D. In the first quarter of each year, plans, implementation, reviews, improvements, tracking, and public announcement of self-assessment are conducted.
(2) Submission of Audit Reports
A. Upon completion of audit work, an audit report is submitted to the Chairman, which includes details of audit findings and should also contain explanations and improvement plans submitted by the audited units.
B. Any defects discovered in auditing shall follow up on the matters and prepare follow-up reports at least on a quarterly basis. The follow-up result shall submit to the Chairman.
C. Audit reports and follow-up reports are submitted for review to all independent directors by the end of the following month after approval.
(3) Disclosure and Reporting
In accordance with the "Regulations Governing Establishment of Internal Control Systems by Public Companies", the following information is submitted to the Financial Supervisory Commission (FSC) through the internet within the specified period:
A. Annual audit program for the next year : before the end of December each year
B. The information regarding audit personnel and their training for the previous year : before the end of January each year
C. The implementation status of the annual audit program for the previous year : before the end of February each year
D. The Internal Control System Statements for the previous year : before the end of March each year
E. The improvement of any internal control deficiencies and abnormal findings during the previous year's internal audit : before the end of May each year
The appointment, evaluation, and compensation of internal audit personnel in the company are carried out in accordance with the relevant personnel regulations and their performance evaluations are conducted once a year. The aforementioned appointment, evaluation, and compensation processes shall submit for approval to the Chairman. The relevant personnel regulations have been posted in the company's internal staff area.
This year (2023), the independent directors communicated with the accountants and internal audit division through the audit committee, and the contents are as follows:
1. Meeting dates : March 21, May 3, August 2, November 1
2. Communication matters : (by presentation and verbally)
A. Explain the materiality review standards for financial statements.
B. Communication of changes in laws and regulations.
C. Sharing of corporate governance trends.
《Internal audit part》
A. Audit work execution status.
B. Explanation of revision of internal control system.
C. Response measures to changes in laws and regulations.
3. Opinion of independent directors: No objection.