The company shall allocate qualified and full-time internal auditors based on the company's scale, business conditions, management needs and other relevant laws and regulations. Internal audit is a detached and independent department, directly subordinate to the board of directors. In addition to reporting audit progress and results to members of the audit committee every month, internal audit also summarizes reports at regular board meetings. The purpose of internal auditing is to investigate and evaluate whether the operation, effectiveness and efficiency of each internal control system are appropriate, to provide timely improvement suggestions to ensure the continuous and effective implementation of the internal control system, and to assist the board of directors and management in fulfilling their responsibilities.
The appointment and removal of the company's internal audit manager shall be subject to a resolution of the board of directors with the approval of the audit committee; the appointment and removal of internal audit personnel shall be handled in accordance with the company's regulations.
The internal audit formulates an annual audit plan based on the risk assessment results. The scope covers all operations of the company and important subsidiaries of the company. Auditors conduct on-site audits regularly or irregularly. The audit results are summarized in working papers and relevant information to prepare an audit report for review to ensure the continued and effective implementation of the internal control system and serve as a basis for review and correction of the internal control system.
The company urges all internal units and important subsidiaries to self-assess the effectiveness of the internal control system on a regular basis every year, and then the internal audit unit reviews the self-assessment reports of each unit and important subsidiaries, and communicates with the audit unit The discovered internal control deficiencies and improvement of abnormal matters will serve as the main basis for the board of directors to evaluate the effectiveness of the overall internal control system and issue a statement on the internal control system.
The audit report and follow-up report shall be delivered to each audit committee member for review before the end of the month following the completion of the audit project. If internal auditors discover major violations or the company is in danger of major damage, they will immediately prepare a report for review and notify all members of the audit committee.
