The Company’s internal audit unit is an independent unit directly under the Board of Directors. The audit items are submitted to the independent directors for review by the end of the next month, and the implementation status of the audit plan is reported to the Audit Committee and the Board of Directors on a quarterly basis.
Appoint one audit manager and a suitable number of dedicated internal auditors. The appointment or removal of the audit manager must be approved by the Audit Committee and then resolved by the Board of Directors.
The internal audit implementation guidelines specify that internal audits review the Company’s internal control procedures and report on the appropriateness of these controls, including routine practices, and assess their operational effectiveness and efficiency. The scope covers all operations of the Company and its subsidiaries.
Audit work is mainly conducted based on the audit plan approved by the Board of Directors. This includes performing special audits or reviews as needed. The audits provide the management with an overview of the functioning of internal controls through both general and special audits, and timely inform management of existing or potential deficiencies to assist them in fulfilling their responsibilities.
Internal audit supervises each unit in performing self-inspections and reviews the self-inspections conducted by each unit. This includes checking whether the operations are executed properly and reviewing documents to ensure the quality of execution. The results of these self-inspections are compiled to provide a basis for the internal control statement issued to the Chairman and Board of Directors.
The Company’s internal audit unit consists of a dedicated audit manager and a total of 2 audit personnel.
Competent authorities’ communication status
Communication policy between independent directors and the internal audit manager:
(1) The internal audit manager summarizes the results of the previous month’s audit plan and deficiency follow-up report by the end of each month and submits them to the independent directors for review.
(2) Report to independent directors at least once a quarter on the execution of the audit plan and the progress of the implementation of reporting matters.
Summary of 2024 communication between independent directors and the internal audit manager
| Date | Communication focus | Recommendations and results |
| March 14 Audit Committee | The internal audit manager prepares internal audit business reports. | No comment |
| March 28 Audit Committee | Issues the internal control system statement for 2023. | No comment |
| May 9 Audit Committee | The internal audit manager prepares internal audit business reports. | No comment |
| June 20 Audit Committee | Appoint the audit manager | No comment |
| August 13 Audit Committee | The internal audit manager prepares internal audit business reports. | No comment |
| November 12 Audit Committee | 1. The internal audit manager prepares internal audit business reports. 2. Submits the internal audit plan for 2025. 3. The internal audit manager communicates with independent directors regarding matters related to derivative financial products in internal audits. | The internal audit manager has responded to the questions raised by the independent director. After review, there are no further comments |
Communication policy between independent directors and CPAs:
(1) In addition to holding face-to-face meetings at least once a quarter, the independent directors of the Audit Committee and the CPAs also communicate and discuss in writing. This communication covers areas including the CPA’s independence in auditing the group’s consolidated financial statements, reviewed items, materiality (including adjusting and non-adjusting entries), completeness of related party information, major transactions, audit report content, and the review results of interim consolidated financial statements.
(2) The Audit Committee reviews and completes its report based on the CPA’s audit of the consolidated financial statements, business report, and profit distribution motions.
Summary of 2024 communication between independent directors and the CPAs
| Date | Communication focus | Recommendations and results |
| March 29 Pre-meeting of the Board of Directors | The CPAs explained and discussed the findings and results of the 2023 financial audit. | No comment |
| May 9 Pre-meeting of the Board of Directors | The CPAs explained and discussed the findings and results of the Q1 of 2024 financial audit. | No comment |
| August 13 Pre-meeting of the Board of Directors | The CPAs explained and discussed the findings and results of the Q2 of 2024 financial audit. | No comment |
| November 12 Pre-meeting of the Board of Directors | The CPAs explained and discussed the findings and results of the Q3 of 2024 financial audit. | No comment |
