Organization and staffing of the audit department
Audit Department Responsibilities
The responsibilities of the Audit Department involve understanding and evaluating the implementation of internal control systems, measuring operational efficiency, and providing timely improvement recommendations to ensure the continuous and effective implementation of internal control systems. The department also assists the Board of Directors and management in fulfilling their responsibilities. The Audit Department is under the authority of the Board of Directors and currently consists of one staff member. It adopts an independent and dedicated internal audit approach, conducting regular and ad hoc business audits, financial audits, and other related tasks to effectively assess the soundness, reasonableness, and effectiveness of internal control system compliance.
The responsibilities of the Audit Manager
◎Promoting, developing, and implementing the internal control and internal audit systems of the company.
◎Establishing, revising, and implementing the internal audit implementation rules for the company and its subsidiaries.
◎Planning, executing, reviewing, and reporting on the company’s and subsidiaries’ audit operations, including online reporting.
◎Planning, implementing, reviewing, improving, and monitoring the company’s self-inspection operations.
◎Handling and online reporting of matters related to the company’s annual internal control statement.
◎Evaluating and providing improvement recommendations for the implementation of established company regulations, rules, plans, and policies.
◎Conducting at least one audit per year on affiliated companies in accordance with the “Internal Control System Implementation Guidelines for Publicly Listed Companies.”
◎Regularly reporting audit activities to the supervisors and the Board of Directors and attending Board meetings to provide reports.
◎Conducting internal control project audits as directed by the Board of Directors and supervisors.
◎Executing audit activities based on the audit plan, preparing audit reports, identifying any deficiencies, and providing improvement recommendations, while continuously monitoring their implementation.
Annual Audit Plan
◎The company prepares an annual audit plan in accordance with the “Internal Control System Implementation Guidelines for Publicly Listed Companies.” The audit department then executes various audit procedures throughout the year to evaluate the integrity, reasonableness, and effectiveness of the company’s internal control system.
◎The audit department conducts monthly audits of derivative financial product transactions in compliance with relevant laws and regulations. They also perform quarterly audits of endorsement guarantees and fund lending to others. Additionally, they carry out internal control system self-inspections annually, as approved by the Board of Directors, to enhance the company’s operational performance. The audit reports are submitted to the company’s supervisors and independent directors by the end of the month following the completion of the audit, as required by the “Internal Control System Implementation Guidelines for Publicly Listed Companies.”
◎The Audit Department completes the following designated online reporting tasks within the specified deadlines in accordance with relevant regulations.
※Submitting the “Annual Audit Plan” for the next year by the end of December.
※Reporting the “Information of Audit Manager, Audit Staff, and Audit Proxy” for the current year by the end of January.
※Reporting the “Execution Status of Annual Audit Plan” for the previous year by the end of February.
※Submitting the “Internal Control System Statement” for the previous year by the end of March.
※Reporting the “Improvement Status of Internal Control System Deficiencies and Abnormalities” for the previous year by the end of May.
Appointment and Dismissal of Internal Audit Staff
The company established the “Appointment and Dismissal Guidelines for Internal Audit Staff” in November 2020. The appointment and dismissal of internal audit staff are conducted in accordance with the “Procedures for Appointment, Evaluation, and Compensation of Internal Audit Staff.”
The performance evaluation of internal audit staff is conducted annually and submitted by the audit manager to the Chairman of the company. The details of the appointment and dismissal guidelines are disclosed in the Company Regulations section of the company’s internal documents.