The Organization

The Internal Audit Department is under the board of directors which consists of one director, one senior administrator, and one administrator. According to article 2.2, paragraph 4 of our "Corporate Governance Best-Practice Principles”, the appointment and discharge, appraisal, salary and remuneration of the internal auditors shall be processed in accordance with related regulations regarding our "Internal Control System Regulations". The appointment and discharge of the director is passed by the Audit Committee, and approved by the Board of Directors. Besides, the appointment and discharge, appraisal, salary and remuneration of the other internal auditors shall be approved by chairman of the board.
The Internal Audit Department manages all audit matters of the company and supports the Board of Directors and managers to examine and review the defects of the internal control system and measure operational effectiveness and efficiency. When auditor performs operation, he/she should offer improvement suggestion as necessary, in order to ensure the internal control system can be continuously effective; and aims of operational effectiveness and efficiency, reliability of relevant reports and the compliances of relevant laws can be achieved, and thus can be considered as references when reviewing and correcting its internal control system.
After the submission of the audit and follow up reports, such reports should then be submitted to the parent company and independent directors for review and examination, no later than the end of next month after the audit item has been completed. The director should report audit performance and attend the board meetings on a regular basis; also, he shall attend the Audit Committee meetings to report the audit performance and the correction progress of the previous year.