Internal Audit

Composition of Internal Audit Division

The Internal Audit Division directly reports to the Board of Director. The Head of Internal Audit Department and the team members, who possess the recognized qualifications, will monitor and review the internal control system to ensure the effectiveness and efficiency of implementation, the accuracy of financial data and the compliance to laws and regulations, and make recommendations to the board to safeguard the smooth running of the company.

The appointment or removal of the Head of Internal Audit shall be approved by the Board of Directors and filed to Financial Supervisory Commission, Executive Yuan, R.O.C. Securities and Futures Bureau within the first ten days of the next calendar month.

Internal Auditors should be legally recognized with sufficient hours of continuing professional development. Details of each internal auditor (including its name, age, education, experience, years of service and training information) shall be filed to Financial Supervisory Commission, Executive Yuan, R.O.C. Securities and Futures Bureau electronically before the end of January each year.

Operation of Internal Audit Division

• Internal Audit Division is independent, directly reports to the Board of Directors. It shall report in the board meetings, the Chairman of the Board and supervisory personnel every month or as required.
• Internal Audit Division shall review the internal control system of each operating unit on a regular basis. It shall also report on the basis of planning, ways of implementation and the effectiveness and efficiency of the system. The scope of review includes the company itself and its subsidiaries.
• The internal audit policies are approved by the Board of Directors and implemented by the Division. The Division plans the audit with reference to the risk assessed and the requirements by the regulator. Special audit will be conducted if necessary. Its scope includes reviewing the completeness of control, condition of implementation, accuracy of information, effectiveness and efficiency, in order to evaluate the system and submit a written report on the conclusion and recommendation.
• Submit electronically to Financial Supervisory Commission, Executive Yuan, R.O.C. Securities and Futures Bureau (i) a report on the implementation of the control system for each financial year within two month after the year end, (ii) an audit plan for the next financial year by the end of the current year, (iii) a report on the failure and the subsequent improvement of the control system for each financial year within five months after the year end.
• The Internal Audit Division will co-ordinate a self-assessment on the internal control system by each operating unit throughout the year, and will review the result of their assessment. Any failure and subsequent improvements of the internal control system for the operating unit will be reported to the Board of Directors and the President for their evaluation of the effectiveness of the overall internal control system. as a basis for their declaration of opinion.
• A declaration of Directors’ opinion on the internal control system shall be uploaded to the website of the regulator, published on the annual report and Prospectus within the first four months after each financial year end.