According to the “Regulations Governing Establishment of Internal Control Systems by Public Companies” which is promulgated by the Financial Supervisory Commission, an auditing department under the board of directors must be set up and the number of auditors is two now. Auditors are full-time positions, and do the internal audit jobs independently. The function of the auditing department is inspecting financial and business audit jobs regularly and irregularly. To understand the situation of the internal control system following rules and the soundness, rationality and effectiveness of the internal control system. Depending on results of auditing, put forward proposals such as analysis and estimation to accelerate effective control and quality improvement, enhance efficiency; reduce operating risks with reasonable costs. Meanwhile another function is to assist the board of directors and its managers checking and reviewing the deficiencies of the internal control system and judging the operational effects and efficiency. To provide suggestions for improvement at the right time to be sure the continuous and effective implementation of the internal control system and as a proof of reviewing and correcting the internal control system.
The implementation of the audit plan
The auditing department draws up the annual audit plan according as the “Regulations Governing Establishment of Internal Control Systems by Public Companies” and other relevant regulations then implements various works of auditing in cycles during the year to estimate our Company’s eight major circulations and the design of other management control systems are sound and reasonable or not; all units implement effectively or not.
Auditing department complies with the Financial Supervisory Commission that implements auditing works of the following at least to each of the parent company and its subsidiaries.
- Works of auditing deals of derivative financial products by monthly and endorsement guarantee and loan funds with other people by quarterly.
- To provide the tracking report on improvement of audit deficiencies by quarterly.
- Implement the self-estimation of internal control system every year so as to improve the operating performance of our company.
- For the processing in need during the year, audit in project casually.
And according to the provision of “Regulations Governing Establishment of Internal Control Systems by Public Companies”, after the completion of the auditing report, give the auditing report and the tracking audit report to all independent directors of our company before the end of next month.
Works of declaration
Auditing department within the time limit set by the Financial Supervisory Commission, to complete works of the following provisions of the network declaration.
- To declare the “Internal Auditors List” for the current year before the end of January.
- To declare the “Implementation of The Annual Audit Plan” for the last year before the end of February.
- To declare “Statement of Internal Control System” for the last year before the end of March.
- To declare the “Situation of Lack of Internal Control System and Improvement of Abnormal events” for the last year before the end of May.
- To declare the “Annual Audit Plan” for the next fiscal year before the end of December.
According to the second clause of the fourth article of the "Internal Organizational Structure and Related Regulations of Senior Managers" of this company, the audit department belongs to the board of directors. The appointment and dismissal of the internal audit manager shall be approved by the board of directors. For those who set up an audit committee, the appointment and dismissal of the internal audit manager shall be agreed by the audit committee and reported to the board of directors for resolution. The appointment, evaluation, and salary of internal audit personnel shall be reported to the chairman by the audit manager.