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Organization and Operations of Internal Auditing

Section of Internal Auditing
  • The Company establishes a section of internal auditing affiliated to the Board of Directors which includes an exclusive chief internal auditor. The chief internal auditor reports the audit business to each independent director on a regular basis and attends the Board meeting.
  • According to“ Corporate Governance Best Practice Principles for Companies” established by the Company, the appointment of an chief internal auditor shall submit for discussion by the board of directors and the appointment, dismissal, evaluation and review, salary and the compensation of internal auditors of the Company shall be reported to the board of directors or shall be submitted by the chief auditor to the chairman of the Company for approval.
Work Scope
  • The internal auditors shall formulate annual auditing plans based on the results of risk evaluation and determine the auditing priority targets and items to be audited in accordance with levels of risks. The annual auditing plan for the next year resolved by the Board, the implementation circumstance of the annual auditing plan for the last year and inadequacy of internal control system and improvements for the last shall be declared on the website named by FSC relatively prior to the end of the fiscal year, within 2 months after the end of the fiscal year and within 5 months after the end of the fiscal year.
Providing Auditing Reports
  • Auditing reports and follow-up reports which have been examined shall be submitted to independent directors for review prior to the end of the subsequent month.
Matters of Self-Assessment on the Internal Control System
  • Regularly review the effectiveness of each department’s self-assessment on the internal control system. And the results along with inadequacy of internal control system and improvements discovered by the auditing section shall be used as major reference for evaluating the effectiveness of whole internal control system and creating Statement of Internal Control System. Statement of Internal Control System shall be declared on the website named by FSC within four months after the end of fiscal year.
Supervision over Subsidiary
  • To provide assistance and supervision over the implementation circumstance of the subsidiary’s internal control system, including the subsidiary in the scope of auditing and reviewing its annual auditing plans, actual implementation circumstance, auditing reports and results of self-assessment.

Communication between independent directors and internal auditing officers

The Company’s internal auditing officers periodically communicate audit reports and follow up on the implementation status of improvement measures with independent directors. Internal auditing officers give and discuss audit reports with independent directors during Audit Committee meetings, and convene audit meetings at least once a year. The last audit meeting is held on December 12, 2023.

Recent communication between independent directors and internal auditing officers is summarized below:
MEETING DATE Meeting title Topics for communication Communication situation and results The company's handling results of
independent directors' opinions
2023/12/12 Audit Meeting Progress of audit work and its execution. All independent directors have been informed. All independent directors had no opinion.
Presentation of the 2024 audit plan. All independent directors have been informed. All independent directors had no opinion.
2023/12/12 Audit Committee The Audit Plan from 2023/10/1~2023/10/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving the 2024 audit plan for the Company and its subsidiary. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2023/11/07 Audit Committee Reviewing and approving amendments to Internal Control Systems of the Company. Opinion of independent director Por Lai: From an auditing point of view, it is suggested that the Company shall take previously material modifications into consideration when amending Internal Control Systems. It will be great helpful for the future direction of development to the company. The Company will follow the suggestion of independent director Por Lai when amending Internal Control Systems.
2023/10/26 Audit Committee The Audit Plan from 2023/7/1~2023/9/30 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2023/08/08 Audit Committee The Audit Plan from 2023/4/1~2023/6/30 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
2023/05/09 Audit Committee The Audit Plan from 2023/1/1~2023/3/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2023/02/21 Audit Committee The Audit Plan from 2022/11/1~2022/12/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the communications between the independent directors and the independent auditor in 2022. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
Review and approving the Company's 2022 Statement of Internal Control System. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2022/12/29 Audit Meeting Presentation of audit report and the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
2022/11/18 Audit Committee The Audit Plan from 2022/7/1~2022/10/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
Reviewing and approving the 2023 audit plan for the Company and its subsidiary. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2022/08/09 Audit Committee The Audit Plan from 2022/5/1~2022/6/30 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2022/05/09 Audit Committee The Audit Plan from 2022/3/1~2022/4/30 and its execution. All independent directors have been informed. All independent directors had no opinion.
2022/04/13 Audit Committee The Audit Plan from 2022/1/1~2022/2/28 and its execution. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2022/04/13 Audit Meeting Progress of audit work and its execution. Opinion of independent director Yong Xiang, Chiu: it is suggested that prohibit employees from uploading personal files (work irrelevant) to PC and notebooks of the Company, avoiding the legal issues by leaking the information. The rest of Audit Committee mebers had been informed. The Company had followed the suggestion of independent director Yong Xiang, Chiu to reaffirm the infromation security propaganda to employees and have employees signed the "Infromation security policy and statement."
2022/02/16 Audit Committee The Audit Plan from 2021/11/1~2021/12/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the communications between the independent directors and the independent auditor in 2021. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
Review and approving the Company's 2021 Statement of Internal Control System. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2021/12/14 Audit Committee The Audit Plan from 2021/10/1~2021/10/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving the 2022 audit plan for the Company and its subsidiary. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2021/11/09 Audit Committee The Audit Plan from 2021/7/1~2021/9/30 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2021/08/06 Audit Committee The Audit Plan from 2021/6/1~2021/6/30 and its execution. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2021/07/15 Audit Committee The Audit Plan from 2021/4/1~2021/5/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
2021/05/11 Audit Committee The Audit Plan from 2021/1/1~2021/3/31 and its execution. All independent directors have been informed. All independent directors had no opinion.
Descriptions of the follow-up report on improvements on deficiencies and irregularities of internal control. All independent directors have been informed. All independent directors had no opinion.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
2021/02/23 Audit Committee The Audit Plan from 2020/10/1~2020/12/31 and its execution. Opinion of independent director Por Lai: it is suggested that adding the extra column “Handling Results” to execution of Audit Report for following up on the matters. The Company had followed the suggestion of independent director Por Lai when reporting execution of Audit Report to the Audit Committee on 2021/5/11.
Reviewing and approving amendments to Internal Control Systems of the Company. Passed after review and reported to the Board of Directors. All independent directors had no opinion.
Review and approving the Company's 2020 Statement of Internal Control System. Passed after review and reported to the Board of Directors. All independent directors had no opinion.

Communication between the CPA and the Company about internal control suggestions

The CPA irregularly communicate with the Company about internal control suggestions after conducting project audits of Internal Control Systems of the Company.
Recent communication between the CPA and the Company is summarized below:
Date of meeting
Meeting title
Topics for communication
Communication situation and results
2021/10/13
On-site audit closing meeting
Suggestions of project audits of Internal Control Systems of the Company
The Company have been informed.