Audit organization
Audit organization
I. Internal Audit Organization
Our internal audit is responsible for assisting the board of directors and managers in inspecting and reviewing defects in the internal control systems as well as measuring operational effectiveness and efficiency, and shall make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.
The company's audit department is an independent unit, reporting to the board of directors, and has a chief internal auditor. The appointment and removal of the chief internal auditor must be approved by the audit committee and submitted to the board of directors for resolution.
II. Internal Audit Operations
1. Audit Scope: Includes auditing the design and execution effectiveness of internal control systems at the enterprise and operational levels, as well as reviewing the self-inspections of internal controls by each department and subsidiary.
2. Audit Subject: Includes all departments of our company and subsidiaries.
3. Audit Purpose: To assist the board of directors and mangers in inspecting and reviewing defects in the internal control systems as well as measuring operational effectiveness and efficiency, and shall make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.
4. Audit Method:
(1). The audit department shall formulate an annual audit plan in accordance with relevant regulations and obtain approval from the board of directors. Based on this plan, the audit department shall conduct audits of various operational items, propose improvement suggestions, and follow up on subsequent matters. The audit report shall be delivered to each independent director for review by the end of the following month, and the implementation status shall be reported to the audit committee and the board of directors. Through the implementation of the audit work, the board of directors and managers shall be assisted in fulfilling their internal control and risk management responsibilities.
(2). The audit process should adhere to the principles of objectivity, impartiality, and independence, and exercise due professional care.
