GOVERNANCE · INTERNAL AUDIT
Internal audit
An independent internal-audit unit reports directly to the board, helping it review the internal control system and measure operational effectiveness and efficiency.
Organization
The internal-audit unit reports to the board and is staffed by one to two dedicated auditors according to the company's needs. The appointment, evaluation and remuneration of auditors are approved by the chair on the audit head's recommendation; appointment or removal of the audit head requires the audit committee's consent and a board resolution.
Operation
Internal audit helps the board examine and review weaknesses in the internal control system and offer timely improvements, ensuring controls remain effective. Work follows the Regulations Governing Internal Control Systems of Public Companies and the rulings of the Financial Supervisory Commission.
- By end-December: file the next year's annual audit plan.
- By end-January: file auditor information for the year.
- By end-February: file the prior year's audit-plan execution.
- By end-March: file the prior year's internal-control statement.
- By end-May: file remediation of prior-year control weaknesses.
Communication with independent directors
The audit head meets independent directors at least once a quarter to report on internal-audit and control operations, and may convene at any time for material issues. Independent directors and the CPA communicate well, reviewing consolidated financial reports each quarter, with no disagreements recorded in the latest year.