The internal audit officer not only has to report audit operations to each Supervisor on a regular basis, but also has to attend and deliver a report to the board of directors meeting.
The commission of internal audit is to assist the board of directors and managers in inspecting and reviewing defects in the internal control systems as well as measuring operational effectiveness and efficiency, and to make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.
The majority of the audit work is executed according to the annual audit plan, which needs to be approved by the board of directors. Such plan, based on the results of the risk assessment, including matters to be audited monthly, will be faithfully implemented so as to check its internal control systems; and audit reports, annexing working papers and relevant materials will be prepared accordingly.
All internal departments and major subsidiaries conduct self-assessments at least once each year. The purpose of self-assessments is to establish the company’s self-monitoring mechanisms. The internal auditing department review the self-assessment reports prepared by all departments and major subsidiaries, and submit the self-assessment reports, together with the summaries on the correction of defects and irregularities of internal control systems discovered by the internal auditing department, to serve as the primary basis for the board of directors and the general manager to evaluate the overall efficacy of all internal control systems and to produce Internal Control System Statements.