Investor Relations > Corporate Governance
1.Organization and Operation of Internal Audit
The Company’s Audit Office is an independent unit that reports directly to the Board of Directors. It is responsible for inspecting and evaluating the effectiveness of the Company’s internal control system to enhance overall operational efficiency.
The Audit Office is headed by a Chief Audit Executive. All audit personnel possess the qualifications required by the Securities and Futures Bureau (SFB) and participate in continuing professional education on internal auditing each year.
The list of internal audit personnel is filed with the Market Observation Post System (MOPS) by the end of January each year in accordance with regulatory requirements.
2. Independent Directors’ Communication with Internal Audit and External Auditors
A. The Head of Internal Audit submits monthly audit reports to the Independent Directors (no later than the end of each month).
B. The Head of Internal Audit reports quarterly audit matters and identified internal control deficiencies to the Audit Committee and Independent Directors, and responds to their inquiries.
C. At least once a year, a meeting is held with the Independent Directors to thoroughly communicate key findings from internal and external audits, with complete records maintained.
(1) The Company’s Head of Internal Audit communicates regularly with the Audit Committee on audit report results and the status of follow-up actions, ensuring full communication regarding audit execution and effectiveness.
(2) The Company’s Independent Directors may request the external auditors to report on the audit of the financial statements and relevant regulatory requirements, and to communicate directly with the Independent Directors. The Audit Committee also reviews and evaluates the auditors’ appointment, independence, and qualifications.
3. Assessment of Certified Public Accountant (CPA) Independence
According to the Company’s Corporate Governance Best Practice Principles, the Company is required to periodically evaluate the independence and competency of its appointed certified public accountants (CPAs). In practice, the Board of Directors conducts an annual assessment of the independence and suitability of the external auditors.
The evaluation not only reviews the auditors’ independence and professional capabilities but also examines their performance and the reasonableness of audit fees.
On February 22, 2023, the Board of Directors approved the annual assessment of the CPA’s independence and suitability.
The evaluation was based on the following materials and reports provided by the CPA and the accounting firm:
CPA Independence Declaration
CPA Independence Assessment Questionnaire
Audit Quality Indicator (AQI) Report issued by the firm
The assessment covered the following key items:
Whether the CPA holds any significant financial interest related to the Company
Whether there are any business relationships between the CPA and the Company (or its affiliates) that may impair independence
Whether, within the past three years, the CPA has served as a director, supervisor, executive officer, or in any other position with significant influence over the Company’s audit
Whether there are any other circumstances that could compromise the CPA’s independence or objectivity
The Audit Quality Indicators included the following dimensions:
Professional Competence at both firm and engagement levels (audit experience, training hours, staff turnover, and professional support)
Independence (ratio of non-audit fees, client familiarity)
Quality Control (partner workload, quality assurance resources)
Supervision (deficiencies identified in external inspections, regulatory review findings)
Innovation Capability (audit innovation plans or initiatives)