INTERNAL CONTROL SYSTEM  
   

 

 Organization and Operation Summary of Internal Audit Organization in CHIEFTEK Precision Co., Ltd.:
 

I. Purpose of Audit
It aims to assist the Board of Directors and Managers in checking, evaluating and reviewing the implementation and deficiency of the internal control system of the Company. Moreover, it is to evaluate the operation effect and efficiency and provide suggestions for improvements at the right time, so as to ensure the continuously effective implementation of internal control system.

II. Internal audit organization
Audit Office, which is set up and instructed by the Board of Directors, is in charge of the audit affairs. Moreover, it should report to the Board and the Supervisors regularly. .

 

 
  III. Operation of internal audit
i. Audit scope:
The internal audit work includes checking and reviewing whether the internal control system is proper and valid, as well as evaluating the performance of operation activities. To be specific, the audit scope covers:
1. Reviewing the reliability and integrity of financial and operating information.
2. Reviewing the current systems, so as to assure the compliance of policies, plans, procedures, contracts and laws.
3. Reviewing the method of assets safeguarding; checking whether the assets exist if necessary.
4. Evaluating whether the used resources are economic and valid.
5. Reviewing the operation or project plan, so as to confirm whether the actual outcome is consistent with the set goals.
  ii. Audit subjects:
The audit subjects include the businesses under the Company and the subsidiaries. The personnel of the target department are required to stay close cooperation.
 
iii. Audit method:
In principle, the auditor should audit the target units on field as well as requesting the target department to present documents, account books and vouchers for auditing written data.
 
iv. Operation procedure of internal audit:
1. The audit work include checking and evaluating audit plan and information, communicating on the results and tracking.
2. Based on the consideration the risk evaluation, major audit points should be made according to individual audit cases as well as manuscript.
3. When the field inspection or written inspection is ended, it should make full communication with the target department head regarding the audit results. Moreover, the auditor should follow up the improvements based on the improvement plan proposed by the target department and the target finish date.
4. Once the audit report and tracking report are confirmed, they should be submitted to the supervisor for review.
5. The audit manager should participate in the board meeting regularly, so as to report the audit plan and the implementation status of deficiency improvement.
 
v. Internal audit time:
1. Routine internal audit:
To guarantee effective implementation of the internal control system in the Company, the Internal Audit Office should work on the Annual Audit Plan and determine the time for each audit item by the end of each year based on the characteristics of 9 major transaction cycles, the regulations of internal control rules, the key audit items mentioned in the document from the competent authority by referring to the previous audit, the transaction frequency and the operation complexity of the Company.
2. Non-scheduled internal audit:
To fully understand the current operation situation of the target department, the Internal Audit Office may stipulate audit items based on the priority, risk and transaction frequency and operation complexity of various transaction circles. It may take the Internal Control System and Internal Audit Implementation Rules as the main axis to design content and determine key inspection items.
3. Internal audit of project:
To ensure the effective implementation of internal control system, the senior manager of the Company should designate the audit theme and time, and auditors should conduct various audit inspections within the determined time.
 
 
 
 
 
 
 
 
 
 
 
   
   
   
   
   
   
   
   
   
     
     
     
     
     
     
 
 
 
Copyright®2008 CHIEFTEK PRECISION CO., LTD All Rights Reserved.
Product information is subject to change without notice. If there is any inconsistency with the real products, we will not bear any legal responsibility.