Purpose of Internal Audit
- The purpose of establishing internal audit in the company is to assist the board of directors and management in reviewing deficiencies in the internal control system, measuring the effectiveness and efficiency of operations, and providing timely improvement suggestions. This ensures the continuous and effective implementation of the internal control system and serves as the basis for reviewing and revising the internal control system, promoting the sound operation of the company.
- The nature of internal audit work is supportive of management, making various operation records and processing procedures sound, collecting various information at any time, and providing decision-making or planning references. In general business organizations, it analyzes and evaluates the business activities of various departments of the enterprise independently according to established standards or regulations to assist each management level in achieving its mission.
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Organizational Structure of Internal Audit
- The company establishes an internal audit unit under the board of directors, dedicated to internal audit work, and configures a sufficient number of full-time internal audit personnel according to the company's size, business conditions, management needs, and other relevant legal requirements.
- The appointment and removal of the head of internal audit should be approved by the board of directors, and one audit manager should be appointed.
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Operation of Internal Audit
- Formulation and execution of annual audit plans: Based on the results of risk assessment, formulate the annual audit plan (including items to be audited each month). The annual audit plan should be approved by the board of directors; when revised, the same procedure applies.
- Special audits: When requested by the requesting unit, instructed by senior management, or abnormalities are found in the audit operation, it is necessary to deeply understand the issue, submit a report, and use it as a basis for improvement measures.
- Audit reports: When auditors discover significant violations or potential significant damage to the company, they should immediately prepare a report for submission and notify each independent director.
- Auditors should uphold an independent spirit, execute their duties objectively and impartially, and exercise the necessary professional care. In addition to regularly reporting audit business to each independent director, the head of internal audit should also attend board meetings to report.
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