The internal audit division of the Company reports directly to the Board of Directors, is composed of one general auditor and one audit staff, should report regularly and irregularly to the Board of Directors.
The scope of audit includes all financial, business operational and management functions and is divided into nine respective audit execution phases in accordance with the law. In addition to all divisions of the Company, all subsidiaries in compliance with the provisions of law shall also be subject to audit performed by the Company’s internal audit staff.
The audit is mainly done as a routine audit performed in accordance with the annual audit plan. A project audit shall be performed based on needs to prevent any internal control system deficiencies and come up with improvement suggestions. An audit report shall be submitted to the Board of Directors upon the completion of audit work and the execution status and results shall be regularly reported during board meetings in order to implement the spirit of corporate governance. In addition, the internal audit staff shall also procure that each division performs self-inspection and establishes a self-corporate supervision mechanism. The self-inspection results shall be used as a basis for suggestions to the Board of Directors and General Manager of the Company for the issuance of internal control statements.
