Corporate Governance

Internal Audit

The company conducts internal audits with the goal of assisting the Board of Directors and managers to examine and review the effectiveness of internal control systems and balance operational effectiveness and efficiency. These audits are also aimed at providing recommendations for improvement and management assistance at appropriate times, so as to ensure that internal control systems can be sustained and effectively implemented.

The company’s internal audit unit is subordinate to the Board of Directors and is equipped with a suitable number of internal auditors whose responsibilities are interchangeable. The hiring and dismissal of internal audit supervisors are reported to the Financial Supervisory Commission for filing after the Board of Directors passes a resolution; such supervisors are required to report to the Board of Directors on audit tasks. The internal audit unit is comprised of a total of four people, including the supervisor and subordinate auditors.

Audit work is primarily based on the annual audit plan passed by the Board of Directors. This auditing plan involves performing a risk assessment based on legislative provisions, consideration of changes in the business environment, opinions of the managers in each work unit as well as past audit cycles and audit results, and audits are formulated based on the results of this risk assessment. Further consideration is given to the necessity of executing special project audits or reviews; the audit scope includes the businesses overseen by the company’s various units and subsidiaries.

The company’s various units and subsidiaries conduct a self-assessment once per year. The internal audit [personnel] then reviews these self-assessment reports, with rectification of any internal control deficiencies or abnormalities discovered by the internal audit to serve as the basis whereby the Board of Directors and President assess overall internal audit system effectiveness and issue statements on the internal control systems.

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