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. Communication Between Independent Directors and Auditors
The Audit Office submits the monthly audit reports to all independent directors for their review on a regular basis. The Chief Audit Executive reports the progress of internal control audits during Board meetings, including completed audit items, identified irregularities, and evaluations of the internal control system.
If any revisions to the internal control system are deemed necessary, the Audit Office will submit the proposed amendments to the Audit Committee for approval before forwarding them to the Board of Directors for resolution.
The Company also holds at least one meeting each year between independent directors, the Chief Audit Executive, and the external auditors. During the meeting, the external auditors report on audit results and respond to questions and feedback from both the independent directors and the internal audit head.
When necessary, communication may also take place via telephone or email. This mechanism ensures that independent directors fully understand the status of financial audits, while enabling effective supervision through transparent financial disclosure and communication—thereby strengthening the Company’s risk management and oversight framework.
獨立董事與簽證會計師、內部稽核主管溝通情形摘要 /
Summary of Communication Between Independent Directors and Auditors
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)