Internal Audit Operation

The Internal Audit department operates as an independent unit directly under the Board of Directors. In addition to presenting regular reports at board meetings, the Internal Audit department also provides periodic updates to the Chairman and the Audit Committee as necessary.

The “Internal Audit Regulations” clearly define the role of Internal Audit in reviewing the internal controls of the company’s operational processes. The audit evaluates whether the design and actual daily operations of these controls are appropriate, effective, and efficient. The review scope covers all units, operations, and subsidiaries of the company.

Audit tasks are primarily conducted based on an audit plan approved by the Board of Directors, formulated according to identified risks. When needed, project audits or reviews are conducted. By executing general and project audits, the Internal Audit department provides management with objective assurance and insights into the functionality of internal control systems. It also serves as an additional channel for management to identify and address existing or potential control weaknesses promptly.

The Internal Audit department also reviews self-assessments conducted by all company units and subsidiaries. This includes verifying operational execution and reviewing documentation to ensure quality. The findings from these self-assessments are consolidated and reported to the Audit Committee and the Board of Directors.

The company’s Internal Audit unit is staffed with a chief audit executive and internal audit staffs. The appointment and dismissal of the chief audit executive are subject to the approval of the Audit Committee and resolution by the Board of Directors. Relevant policies and procedures are disclosed in the company’s internal regulations section

Internal Audit Organization and Operations