11.May.2021
Audit
Organization
Audit scope
Execution of operations
Annual plan
2.The audit office should prepare an annual audit plan for the following year before the end of each year, submit it to the audit committee for review and implement it after approval by the board of directors.
3.According to the audit planning procedures, after approval by the supervisor, the audited department will be notified verbally or in writing one week before the audit, fully communicate with the auditing department and require the audited department to provide information.
4.Understand the current work content, collect relevant information, refer to past audit reports, and follow up with the audit to see whether the improvements that should be made have been improved. Observe the changes in business growth and decline, analyze the major differences, understand the ins and outs and trace the reasons.
5.Create audit working papers based on the collected information as supporting evidence.
6.Propose problems and abnormal matters to relevant departments for review, and identify the causes of difficulties and the crux of the problems in actual work. After review, improvement measures should be formulated and solutions proposed. In addition, an audit report should also be prepared for irregularities in operations not in accordance with company regulations and submitted to the general manager for review.
7.If the relevant departments have any opinions on the review or audit report, they can put forward their opinions for further review, and the general manager will make a final decision. After the audit report is approved by the general manager, a document will be issued to the relevant departments to implement improvements. From the date of improvement, auditors should schedule regular or irregular follow-up on the implementation of improvement matters at least quarterly, and follow up until improvements are made to ensure that relevant units have taken appropriate improvement measures in a timely manner and make follow-up records. The report should be submitted to the general manager for approval and then sent to the audit committee for review.
8.After the audit report and follow-up report have been reviewed, they should be submitted to the Audit Committee for review before the end of the month following the completion of the audit project.
- The Company has established a dedicated internal audit unit under the direct command of the Board of Directors and under the supervision of the Audit Committee.
- There is one person in charge of the audit department, who is appointed and removed by the board of directors. A number of audit personnel are set up according to actual needs, and personnel with appropriate professional abilities are selected to serve as full-time employees to promote the internal audit business.
- The appointment, removal, assessment, and salary remuneration of internal auditors shall be signed and reported to the chairman of the board of directors through the head of the audit office. It is handled in accordance with the "Assessment Measures" and the "Employee Remuneration and Bonus Management Measures".
Audit scope
- The company's internal audit business scope includes investigating and evaluating the rationality and effectiveness of the internal control system, including analyzing and reviewing the effectiveness and efficiency of the company's operations, and reporting with reliability, timeliness, transparency and compliance with relevant norms and relevant laws and regulations. Comply with, supervise and review the self-evaluation internal control system, covering all levels of the company, subsidiaries and affiliated branches.
- Auditors perform internal audit work mainly to provide the board of directors and managers with accurate information to achieve the following goals:
1.Operational effectiveness and efficiency.
2.Reporting must be reliable, timely, transparent and comply with relevant standards.
3.Comply with relevant laws and regulations.
Execution of operations
- The company's internal audit operations are divided into two types: regular and irregular. For regular audits, the audit unit considers business characteristics, organizational size and potential risks, etc., formulates an annual audit plan and approves it by the board of directors. The same applies to revisions, and is implemented accordingly; As for unscheduled audits, they are based on actual needs and conduct in-depth inspections on tasks assigned by superiors, abnormal matters or major incidents.
- The execution procedures of the audit work are as follows:
1.Planning of audit work: including formulating the purpose and scope of the audit, collecting background information, determining the resources required for the audit, notifying the units and personnel under inspection, formulating audit procedures, etc.
2.Verification of information: Auditors should understand and analyze the collected information, and conduct on-site verification when necessary. Relevant information should be compiled into written working papers as the basis for the audit results.
3.Audit report: After the auditors complete the audit work, they should prepare an audit report and submit it to the chairman of the board for approval. The audit results and suggestions should be sent to the management department and the audited unit for improvement, and should be submitted to the audit committee for review before the end of the next month ( Subject to obtaining the receipt record).
4.Post-event follow-up: The audit unit should prepare follow-up reports at least quarterly until improvements are made to determine whether the audited unit has taken corrective measures in a timely manner.
5.Data retention: Audit reports and working papers should be retained for five years.
Annual plan
- The company's internal audit unit will control major financial business activities such as the management of items designated by the Securities and Futures Bureau (such as the acquisition or disposal of assets, engaging in derivatives transactions, lending funds to others, endorsing or providing guarantees for others, and the management of related party transactions). Operations, supervision and management of subsidiaries, management of board meeting operations, financial security inspections, and important transactions such as sales and collection cycles, procurement and payment cycles stipulated in Article 7 of the "Code for Establishing Internal Control Systems for Publicly Offered Companies" cycle, etc.), listed as an audit item in the annual audit plan. The frequency of audits is designed in accordance with the regulations of the Securities and Futures Bureau.
- The company's internal audit unit should include major risk items in the annual audit plan based on the risk assessment results and in conjunction with the enterprise-level objectives and operational-level objective risks identified in the risk analysis. The frequency of audits is designed according to different risk levels.
- Audit plan procedures
2.The audit office should prepare an annual audit plan for the following year before the end of each year, submit it to the audit committee for review and implement it after approval by the board of directors.
3.According to the audit planning procedures, after approval by the supervisor, the audited department will be notified verbally or in writing one week before the audit, fully communicate with the auditing department and require the audited department to provide information.
4.Understand the current work content, collect relevant information, refer to past audit reports, and follow up with the audit to see whether the improvements that should be made have been improved. Observe the changes in business growth and decline, analyze the major differences, understand the ins and outs and trace the reasons.
5.Create audit working papers based on the collected information as supporting evidence.
6.Propose problems and abnormal matters to relevant departments for review, and identify the causes of difficulties and the crux of the problems in actual work. After review, improvement measures should be formulated and solutions proposed. In addition, an audit report should also be prepared for irregularities in operations not in accordance with company regulations and submitted to the general manager for review.
7.If the relevant departments have any opinions on the review or audit report, they can put forward their opinions for further review, and the general manager will make a final decision. After the audit report is approved by the general manager, a document will be issued to the relevant departments to implement improvements. From the date of improvement, auditors should schedule regular or irregular follow-up on the implementation of improvement matters at least quarterly, and follow up until improvements are made to ensure that relevant units have taken appropriate improvement measures in a timely manner and make follow-up records. The report should be submitted to the general manager for approval and then sent to the audit committee for review.
8.After the audit report and follow-up report have been reviewed, they should be submitted to the Audit Committee for review before the end of the month following the completion of the audit project.
