Group Internal Audit comprises an internal audit head and an appropriate number of qualified and dedicated internal auditors, as required by business scale, business condition, management needs, and the provisions of other applicable laws and regulations. Any appointment and dismissal of internal audit head is submitted to the board of directors for a resolution and relevant rules should be stipulated in the internal audit implementation rules for compliance.
Group Internal Audit establishes a risk-based internal audit system and performs internal audit activities in accordance with the annual audit plan approved by the board of directors, and the scope of internal audit includes internal control systems of the company and its subsidiaries. The internal control self-assessment reports, prepared by the company and its subsidiaries and reviewed by Group Internal Audit on an annual basis, along with audit reports on findings of internal control system identified by Group Internal Audit serve as the basis for the board of directors and general manager to assess the overall effectiveness of the internal control system and to produce internal control system statements.
The internal audit head presents and communicates the audit results to the audit committee, as well as reports internal audit activity report to the board of directors on a quarterly basis. The summary of communications between the independent directors and the internal audit head is listed below.