Internal Audit
Internal audit Organization
The internal auditing office is subordinate to the Board of Directors and staffed with a suitable number of competent and appropriate full-time personnel, including designated deputies for each position. The appointment and removal of the chief audit executive must be approved by the Audit Committee and then resolved by the Board of Directors.
The appointment, evaluation, and remuneration of internal audit personnel are handled by the chief audit executive, who reports directly to the Chairman of the Board.
In addition to regularly reporting audit report to the Audit Committee, the chief audit executive also attends Board of Directors meetings to present reports and, when necessary, reports directly to the Chairman of the Board and the Audit Committee.
The Audit Scope
The internal auditor should evaluate the company's internal control systems and report on whether these controls are designed and executed adequately, effectively, and efficiently. The audit scopes include all the operations of the company and its subsidiaries.
Internal Audits’ Assignment
The main work of the internal audits is performed according to an annual plan which is formulated based on the risk assessment and approved by the Board of Directors. Project audits or special reviews are conducted as needed. By reviewing the execution of the regular audits and the project audits, the management team can understand the functioning of the internal control system and the existing or potential weaknesses in the system.
Self-Assessment of Internal Controls
Internal Auditing Office reviews the results of internal control self-assessment performed by each department and subsidiary to ensure the quality of the executions. In addition, Internal Auditing Office consolidates the assessment results for the Board of Directors to evaluate the overall efficiency on the existing internal control systems before issuing the Internal Control System Statement.