Organizational Structure and Internal Audit

The Company has appointed William Liao, Senior Vice President of the Chairman's Office, as the Director of Corporate Governance, in accordance with the resolution of the Board of Directors on August 8, 2019, to be responsible for corporate governance-related matters, protecting shareholders' rights and interests, and strengthening the functions of the Board of Directors.

William Liao, Senior Vice President, has more than three years of experience in a supervisory position in a financial institution, which meets the requirements of the establishment.

The main responsibilities of the Director of Corporate Governance are to handle matters related to the Board of Directors and Shareholders Meetings in accordance with the law, prepare minutes of the Board of Directors and Shareholders Meetings, assist directors (including independent directors) in taking office and continuing education, provide directors (including independent directors) with necessary information for performing their duties, and assist Directors (including independent directors) comply with laws, etc. 
當年度業務執行及進修情形

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The design, implementation, and internal audit of our company’s internal control system comply with the management guidelines for public companies and all relevant laws and regulations.

The company has established an internal audit function to assist the Board of Directors and management in identifying and addressing deficiencies within the internal control system. The objectives include evaluating the effectiveness and efficiency of operations, ensuring the reliability of financial statements, and verifying compliance with relevant laws and regulations.

The internal audit function also provides timely recommendations for improvements, ensuring the continuous and effective implementation of the internal control system. This process serves as a foundation for refining the system and promoting the company’s sound and sustainable operations.

The Company has established an internal audit unit under the Board of Directors to oversee and carry out internal audit functions. A qualified and adequate number of full-time internal audit personnel are assigned based on the company's size, business operations, management requirements, and relevant laws and regulations.
The appointment and removal of the internal audit director must be approved by the Board of Directors and reported through the Internet Information System for record-keeping by the tenth day of the month following the Board's approval.
Internal audit personnel must meet statutory competency requirements and complete the required hours of continuing education. Additionally, their name, age, educational background, experience, years of service, and training must be reported to the Financial Supervisory Commission in the prescribed format through the Internet Information System before the end of January each year.

Internal auditors are required to uphold an independent and objective spirit while performing their duties. In addition to regularly reporting audit work to supervisors, the audit supervisor must also present reports to the Board of Directors.
Audit Process and Implementation
The Company's internal audit operations adhere to the audit items, schedules, procedures, and methods specified in the Internal Audit Implementation Rules. Auditors conduct regular or ad hoc on-site audits at various units and may request documentation, account books, vouchers, or other materials for written audits as needed. When necessary, specific-topic audits are also performed.

The internal audit unit prepares an annual audit plan based on risk assessment results. Monthly or quarterly audit items are identified to evaluate the Company's internal control system. Audit results are documented in reports, supported by working papers and relevant materials.
Internal Control and Reporting
The internal audit unit requires all company departments and subsidiaries to conduct annual self-assessments of their internal control systems. Following this, the internal audit unit reviews the self-assessment reports and prepares an Internal Control System Statement in the prescribed format for each fiscal year. This statement must be published on the website designated by the Financial Supervisory Commission and included in the annual report within four months after the end of the fiscal year.
Follow-Up and Improvement
Internal auditors must disclose any deficiencies or anomalies in the internal control system identified through audits, self-assessments, or special reviews conducted by accountants. These findings are documented in the audit report, which is subsequently reviewed and monitored for follow-up actions. Regular follow-up reports ensure timely and appropriate corrective measures are implemented and are incorporated into the performance appraisals of relevant departments.

Audit reports and follow-up reports must be submitted to supervisors for review by the end of the month following the completion of each audit project. In cases of significant violations or risks of substantial damage to the company, auditors are required to immediately prepare and submit a report for review and notify supervisors.
Submission to Regulatory Authorities
Internal auditors must submit the following to the Financial Supervisory Commission through the Internet Information System:

  • The audit plan for the upcoming year (by the end of each fiscal year),
  • The status of the previous year's annual audit plan implementation (within two months after the fiscal year-end), and
  • Updates on improvements to internal control deficiencies and abnormalities found in the prior year’s audits (within five months after the fiscal year-end).