INDEX » CORPORATE GOVERNANCE » INTERNAL AUDIT

INTERNAL AUDIT

Communication between the independent directors and CPA
Functions of Internal Audit
The Internal Audit function is responsible for evaluating deficiencies in the internal control system and assessing operational efficiency. It provides timely recommendations to management for improvement to ensure the continuous and effective implementation of the internal control system, the optimal utilization of corporate resources, enhanced operational integration efficiency, and assists management in properly fulfilling its responsibilities.
Establishment of the Internal Audit Unit
The Company establishes its Internal Audit Unit in accordance with its scale, business conditions, management needs, and relevant laws and regulations. The Internal Audit Unit is directly supervised by the Board of Directors. An appropriate number of qualified full-time internal auditors are assigned based on the scope of work and operational requirements, and designated deputies are appointed. Any代理 execution of audit duties by such deputies shall be carried out in accordance with the Company’s Internal Audit Implementation Rules.

The appointment, dismissal, performance evaluation, and remuneration of internal audit personnel are subject to the following procedures: the appointment or dismissal of the Chief Internal Auditor shall first be approved by the Audit Committee and then submitted to the Board of Directors for resolution; all other matters shall be approved by the Chairperson. The appointment and dismissal of internal audit personnel shall be conducted in accordance with the Company’s Internal Audit Implementation Rules.
Communication Between Independent Directors and the Certified Public Accountant

I. Communication Between Independent Directors and the Certified Public Accountant


The Certified Public Accountant attends meetings of the Board of Directors on a quarterly basis when issuing the financial reports to provide necessary explanations. Comprehensive communication and discussions are conducted regarding whether there are any material adjusting journal entries and whether amendments to laws and regulations have any significant impact. Corresponding response measures are also formulated as needed. A summary of the key communication matters is provided in the table below.

DateCommunication PointsOpinions of opposition or reservation from the board
January 26, 20221. Reminders and explanations of major standards and the regulations updates.
2. Latest legal and regulations development.		Bilateral questioning indicates good interaction.
March 2, 20221. Audit Business Implementation and Deficiency Improvement Tracking Report of 4 Quarter 2021 (summary of internal audit report).
2. Financial and operation situation of the company.
3. Latest legal and regulations development.		Bilateral questioning indicates good interaction.
May 4, 20221. Audit Business Implementation and Deficiency Improvement Tracking Report of 1 Quarter 2022 (summary of internal audit report).
2. Financial and operation situation of the company.
3. Latest legal and regulations development.		Bilateral questioning indicates good interaction.
May 27, 20221. Reminders and explanations of major standards and the regulations updates.
2. Latest legal and regulations development.		Bilateral questioning indicates good interaction.
August 11, 20221. Audit Business Implementation and Deficiency Improvement Tracking Report of 2 Quarter 2022 (summary of internal audit report).
2. Financial and operation situation of the company.
3. Latest legal and regulations development.		Bilateral questioning indicates good interaction.
November 2, 20221. Audit Business Implementation and Deficiency Improvement Tracking Report of 3 Quarter 2022 (summary of internal audit report).
2. Financial and operation situation of the company.
3. Latest legal and regulations development.		Good communication with the mutual exchange.
January 16, 20231. Report on the financial condition and operational performance for this quarter.
2. Latest legal updates for the current quarter.		Bilateral questioning indicates good interaction.
February 2, 20221. Scope and results report of the fourth-quarter 2022 financial statement review.
2. Report on the financial status and operational performance for this quarter.
3. Latest legal updates for the current quarter.		Bilateral questioning indicates good interaction.
May 9, 20231. The scope and results report of the first-quarter 2023 financial statement review.
2. Financial and operation situation of the company.
3. Latest legal and regulations development.		The mutual exchange of questions illustrates good interaction.
May 26, 20231. Report on the financial condition and operational performance for this quarter.
2. Latest legal updates for the current quarter.		Bilateral questioning indicates good interaction.
August 4, 20231. The scope and results report of the second-quarter 2023 financial statement review.
2. Report on the financial status and operational performance for this quarter.
3. Latest legal updates for the current quarter.		Bilateral questioning indicates good interaction.
November 7, 20231. Scope and results report of the third-quarter 2023 financial statement review.
2. Report on the financial status and operational performance for this quarter.
3. Latest legal updates for the current quarter.		Bilateral questioning indicates good interaction.
February 2, 20241. Reminder and explanation of major guidelines and regulatory updates.
2. Sharing of the latest regulations for the current season.		Bilateral questioning indicates good interaction.
February 26, 20241. Report on the scope and results of the 2023 financial statement audit.
2. Report on the annual financial status and operational performance results.
3. Sharing of the latest regulations for the current season.		Bilateral questioning indicates good interaction.
May 7, 20241. Review Scope and Results Report of the 1st Quarter Financial Report for Fiscal Year 2024.
2. Report on the Financial Status and Operating Performance for this Quarter.
3. Sharing of the Latest Regulations for the Current Quarter.		Bilateral questioning indicates good interaction.
August 7, 20241. Review Scope and Results Report of the 2nd Quarter Financial Report for Fiscal Year 2024.
2. Report on the Financial Status and Operating Performance for this Quarter.
3. Sharing of the Latest Regulations for the Current Quarter.		Bilateral questioning indicates good interaction.
November 6, 20241. Review Scope and Results Report of the 3nd Quarter Financial Report for Fiscal Year 2024.
2. Report on the Financial Status and Operating Performance for this Quarter.
3. Sharing of the Latest Regulations for the Current Quarter.		Bilateral questioning indicates good interaction.
January 24, 20251. Reminder and explanation of major guidelines and regulatory updates.
2. Sharing of the latest regulations for the current season.		Bilateral questioning indicates good interaction.
February 26, 20251. Report on the scope and results of the 2024 financial statement audit.
2. Report on the annual financial status and operational performance results.
3. Sharing of the latest regulations for the current season.		Bilateral questioning indicates good interaction.
May 7, 20251Review Scope and Results Report of the 1st Quarter Financial Report for Fiscal Year 2025.
2. Report on the Financial Status and Operating Performance for this Quarter.
3. Sharing of the Latest Regulations for the Current Quarter.		Bilateral questioning indicates good interaction.
August 6, 20251. Review Scope and Results Report of the 2nd Quarter Financial Report for Fiscal Year 2025.
2. Report on the Financial Status and Operating Performance for this Quarter.
3. Sharing of the Latest Regulations for the Current Quarter.		Bilateral questioning indicates good interaction.
November 5, 20251. Review Scope and Results Report of the 2rd Quarter Financial Report for Fiscal Year 2025.
2. Report on the Financial Status and Operating Performance for this Quarter.
3. Sharing of the Latest Regulations for the Current Quarter.		Bilateral questioning indicates good interaction.
II. Communication Between Independent Directors and the Head of Internal Audit

The Company’s independent directors maintain effective and sound communication regarding the execution and effectiveness of internal audit operations.

1. Internal audit reports completed on a monthly basis are submitted to all independent directors for review via email, providing timely updates on audit execution and outcomes.
2. After reviewing the audit reports, if independent directors have any questions, comments, or instructions, they communicate with the Head of Internal Audit via email or telephone. The Head of Internal Audit provides explanations and implements necessary adjustments and improvements accordingly.
3. The status of corrective actions for internal control deficiencies and abnormalities is tracked, and a follow-up report is prepared and submitted to the independent directors on a quarterly basis.
4. Through discussions at Board meetings and regular audit reports provided by the internal audit unit, independent directors are able to gain a comprehensive understanding of the Company’s operating conditions.
5. A summary of the major communication matters is presented in the table below.
DateKey Communication MattersOpinions of Independent Directors Expressing Objection or Reservation
February 5, 2021Internal Audit Execution and Follow-up Report on Deficiency Improvements for November and December 2020 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
February 25, 2021Internal Audit Execution and Deficiency Improvement Follow-up Report for January 2021 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
May 5, 2021Internal Audit Execution and Deficiency Improvement Follow-up Report for February and March 2021 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
August 4, 2021Internal Audit Execution and Deficiency Improvement Follow-up Report for April and May 2021 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
November 5, 2021Internal Audit Execution and Deficiency Improvement Follow-up Report for June, July, August, and September 2021 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
January 26, 2022Internal Audit Execution and Deficiency Improvement Follow-up Report for October and November 2021 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
March 2, 2022Internal Audit Execution and Deficiency Improvement Follow-up Report for December 2021 and January 2022 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
May 14, 2022Internal Audit Execution and Deficiency Improvement Follow-up Report for February and March 2022 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
May 27, 2022Status and Results of Internal Audit Activities Conducted by Internal AuditorsNo comments or objections were raised at this meeting.
August 11, 2022Internal Audit Execution and Deficiency Improvement Follow-up Report for April, May, and June 2022 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
November 2, 2022Internal Audit Execution and Deficiency Improvement Follow-up Report for July and August 2022 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
January 16, 2023Internal Audit Execution and Deficiency Improvement Follow-up Report for September, October, and November 2022 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
February 22, 2023Internal Audit Execution and Deficiency Improvement Follow-up Report for December 2022 and January 2023 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
April 12, 2023Internal Audit Execution and Deficiency Improvement Follow-up Report for February 2023 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
May 9, 2023Internal Audit Execution and Deficiency Improvement Follow-up Report for March 2023 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
May 26, 2023Status and Results of Internal Audit Activities Conducted by Internal AuditorsNo comments or objections were raised at this meeting.
August 4, 2023Internal Audit Execution and Deficiency Improvement Follow-up Report for April and May 2023 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
November 7, 2023Internal Audit Execution and Deficiency Improvement Follow-up Report for June, July, August, and September 2023 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
February 2, 2024Internal Audit Execution and Deficiency Improvement Follow-up Report for October to December 2023 and January 2024 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
February 26, 2024Status and Results of Internal Audit Activities Conducted by Internal AuditorsNo comments or objections were raised at this meeting.
May 7, 2024Internal Audit Execution and Deficiency Improvement Follow-up Report for February to March 2024 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
August 7, 2024Internal Audit Execution and Deficiency Improvement Follow-up Report for April to June 2024 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
November 6, 2024Internal Audit Execution and Deficiency Improvement Follow-up Report for July to August 2024 (Summary of Internal Audit Reports)No comments or objections were raised at this meeting.
January 24, 2025Summary report of internal audit findings and improvement tracking for the months of October and November 2024 (Consolidated internal audit report)None
February 26, 2025Summary report of internal audit findings and improvement tracking for December 2024and January 2025 (Consolidated internal audit report)None
May 7, 2025Summary report of internal audit findings and improvement tracking for February and March 2025 (Consolidated internal audit report)None
August 6, 2025Summary report of internal audit findings and improvement tracking for April and May 2025 (Consolidated internal audit report)None
November 5, 2025Summary report of internal audit findings and improvement tracking for June、July and August 2025 (Consolidated internal audit report)None