1. Purpose of internal audit
The company has an audit department to perform internal audits. Its purpose is to assist the board of directors and managers to check and review the internal control systems and measure the effectiveness and efficiency of operations, and provide timely recommendations for improvement to ensure the continuous and effective implementation of internal control systems and as a basis for reviewing and revising the internal control system.
2, The organization of internal audit
The company has an audit department affiliated with the board of directors. The audit department has a full-time internal auditor to perform the internal audit for all operations of the company and the auditor should pay attention to the audit profession, adhere to the spirit of independence, detachment, impartial, and objective.
3. Operation of internal audit
3.1.Scope of audit:
The internal audit scope of the company covers all kinds of operations within the company.
Contain all units of the company and subsidiaries within the group.
3.3. Audit work:
3.3.1. Every year the auditors conduct risk assessments of various internal operating activities of the company and submit the annual audit plan to the audit committee and the board of directors based on the risk assessment results. In the following year, relevant auditing operations will be carried out in accordance with the annual audit plan.
3.3.2 The audit works can be divided into the following types:
(1) Annual planning audit work:
Perform various audit operations in accordance with the annual audit plan approved by the board of directors.
(2) Project audit operation:
Perform specific audit items according to the instructions of the board of directors, management, or projects, and business needs.
3.4. Audit report:
3.4.1. The auditor will inspect and evaluate the implementation of the company's internal control system according to the annual audit plan, and prepares an audit report submitted to the general manager and chairman for review on a monthly basis. The auditors and the inspected unit should communicate the audit results. The deficiency found in the audit should be disclosed in the audit report and in accordance with the provisions of the " Regulations Governing Establishment of Internal Control Systems by Public Companies ". After the completion of the audit report, the audit report will be reported to the members of the audit committee in the next month and the audit report will be communicated to the board of directors quarterly.
3.4.2. After the audit report is reported, it is necessary to track it and make a tracking report regularly to ensure that the relevant units have taken appropriate measures in time until they are completely improved.
3.4.3. The auditor must attend the board of directors and report the results of the internal audit work.
3.5.Assist all units in self-assessment of internal control:
The audit department shall regularly urge each unit within the company to conduct self-assessment of the internal control system, and each unit within the company shall conduct self-assessment based on the internal control. After the self-assessment is completed, the auditor will review the record of each unit to evaluate the self-assessment results and sent the evaluation results to the board of directors. After the approval of the board of directors, the company will issue an annual internal control statement.
3.6. Foreign declaration operations:
According to the "Regulations Governing Establishment of Internal Control Systems by Public Companies", the auditor will upload all reports to the public information observatory declaration system within a certain period of time.