Internal audit department, according to Article 13 of 「 Regulations Governing Establishment of Internal Control Systems by Public Companies 」 , formulates annual audit plans based on the results of the risk assessment, and implement the annual audit plans. In the said year conduct audit on the listed operation cycles to evaluate the completeness and effectiveness of internal control system by responsible departments.
• Sale and receipt cycle.
• Purchase and payment cycle.
• Production cycle.
• Labor and wage cycle.
• Finance cycle.
• Fixed asset cycle:
• Investment cycle:
• Research and development (R&D) cycle.
• Computerized information processing system
Internal audit Department shall conduct a monthly audit on engaging in derivatives transactions, shareholder services and a quarterly audit on extending loans to others, granting endorsements or guarantees for others. P reparing follow-up reports at least on a quarterly basis until such time as correction is made, to ensure that the relevant departments have taken appropriate corrective measures in a timely manner.
IAD submits the required reports to the FSC on time, in the prescribed format via the internet-based information system. They are:
• To complete the submission of next year's audit plan by the end of each fiscal year.
• To complete the claim of the names, ages, educational background, experience, seniority, and training of internal auditors by the end of January each year.
• To complete a report on the execution of previous year's annual audit plan within two months from the end of each fiscal year.
• To complete the public announcement and report the Internal Control System Statement within four months from the end of each fiscal year.
• To complete the submission of corrections of any defects and irregularities of the internal control system discovered during the past year's internal auditing within five months from the end of each fiscal year.