CORPORATE
GOVERNANCE
Corporate Governance
Board of Directors
Committee
Internal Audit
Rules and Regulations
Internal Audit
Corporate Governance
Board of Directors
Committee
Internal Audit
Rules and Regulations
Internal Audit Organization and Operation
The internal audit of Qisda is an independent department directly under the board of directors. It is staffed with a full-time audit officer and auditors, for a total of 6 members.The internal audit of the Company provides reports during the routine meetings of the audit committee and board of directors, and also provides reports to the chairperson and audit committee every month or whenever necessary.
The Company complies with the internal control system, and the audit office has established the internal audit implementation rules according to the internal control system.The current control system, procedure effectiveness and compliance level are executed and measured on this basis. Its scope includes all operations of the Company and subsidiaries.
Key Focus of Audit Operations
- Establishing audit plans according to risks identified, and reporting to the board of directors for approval, followed by execution of the plans.
- Auditing whether the Company’s policies and regulations are followed properly.
- Auditing whether the information maintenance and control of various operations is correct, whether the information reports are timely, effective and correct.
- Evaluating and assisting the improvement of the design of various internal control systems and the operation effectiveness and efficiency of the Company and non-publicly listed subsidiaries.
- Evaluating whether the operational regulations and operational procedures established by each department are appropriate, and whether all responsible supervisors execute supervision properly.
- Reviewing the self-inspection reports of all units of the Company and important subsidiaries, in order to use them as the basis for recommendations to the board of directors and president of the Company to issue the statement of internal control.
- Executing relevant project audits depending upon the need.
- Reporting the audit results of each audit item to the management according to the law, in order to allow them to understand existing or potential deficiencies, and continuous tracking of the deficiency improvement status.
Appointment, Discharge, Evaluation and Remuneration of Internal Auditors
Qisda has specified the appointment, discharge, evaluation and remuneration approval method for the internal auditors of the Company in the “Internal Audit Operational Regulations”.
- The appointment and discharge of internal audit officer shall be approved by the audit committee, followed by submission to the board of directors for resolution. In addition, the appointment and discharge of internal auditors shall be signed and reported by the audit officer to the chairperson; the approval procedure for general employees is adopted for reporting to the chairperson.
- The evaluation and remuneration of internal auditors of the Company shall be signed and reported by the audit officer to the chairperson; the approval procedure for general employees is adopted for reporting to the chairperson.
- The regulations for the audit officer performance evaluation are approved and rated by the chairperson.
In the Company and important subsidiaries, one person in total has obtained the qualification of Certified Internal Auditor issued by the international Internal Auditor Association.
