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Issue Date：October 06, 2022
Coretronic's Internal Audit function is an independent unit that reports directly to the Board of Directors. Besides reporting the schedule and outcome of the audit every month, it briefs the Board of Directors during its ordinary meetings.
The duty of the Audit Office is to investigate and assess the internal control system and the suitability of operation, effectiveness, and efficiency and make timely recommendations for improvements to ensure that the internal control system is continuously and effectively implemented. The Audit Office also assists the BOD and the management in carrying out their duties.
An internal audit system is planned and designed with reference to the internal control system of individual departments. Based on this internal audit system, the internal control of each process is reviewed, and the suitability of the design, practice, effectiveness, and efficiency of such control are reported. In accordance with regulatory requirements, an internal audit shall be implemented every year to review the self-assessment of the internal control system of individual departments. The scope of audit covers the internal control of the effectiveness and efficiency of operations, the reliability of financial statements, compliance with related laws and regulations, etc.; and assessment of the risk level of operations of individual departments. Based on the audit outcomes, the Audit Office will plan the audit program for the next year and implement the audit with BOD approval.
Apart from the audit description, indication of materiality levels, and proposal of recommendations, a responsible unit will be requested to submit an action plan with an estimated date of improvement completion in the audit report. After the date of improvement completion is due, the improvement will be traced with reference to the action plan.
The appointment, dismissal, evaluation, and compensation of the Company’s internal auditors are performed based on the rules of the “Personnel Recruitment Procedure,” “Compensation Regulations,” “Performance Appraisal Regulations,” and “Application Rules for Resignation.” Their evaluation is performed twice every year. The above-mentioned appointment, dismissal, evaluation, and compensation actions will be submitted to the Chairman of the Board for review and approval. The above-mentioned rules have been disclosed in the Company’s internal regulations zone.