I. Purpose of the internal audit
The internal audit of the Taisun Enterprise Co., Ltd. is intended to assist the Board of Directors and managers in inspecting and reviewing the internal control system, measuring the effectiveness and efficiency of the business operation, and providing improvement suggestions in time to ensure continuous and effective implementation of the internal control system and provide a basis for its review and amendment.
II. Operation of the internal audit
The internal audit unit of the Taisun Enterprise Co., Ltd. is independent and directly subordinated to the Board of Directors. It reports to the Chairman or, if necessary, the independent director. In addition to being present at the meeting of the Board of Directors, the internal audit unit shall submit the audit implementation and follow-up reports to the Chairman and independent director every quarter.
- The internal audit unit executes the internal audit and make announcement according to the “Regulations Governing Establishment of Internal Control Systems by Public Companies”
- The internal control system and internal audit enforcement rules specify the review of the internal procedure control during the internal audit. It contains the report on the appropriateness, effectiveness, and efficiency of the controlled design and practice covering the operation and management of the headquarters and each subsidiary.
- The annual audit plan is made according to the result of the risk assessment. It contains the items to be audited every month and shall be approved by the Board of Directors. The same is applicable to the amendment of the annual audit plan.
- The annual audit plan is executed accurately to assess the internal control system of the company. The audit working paper and relevant documents are gathered to make the audit report. Audit projects or reviews shall be implemented if necessary.
- All the deficiencies and nonconformities of the internal control system identified during the internal audit are disclosed in the audit report and followed up accordingly. A follow-up report is made every quarter until improvement is made successfully.
- The internal audit is executed at least once a year to review the self-assessment implemented by each unit. The review is made to make sure the execution of the self-assessment. Documents are also reviewed to ensure the quality of the execution. The internal audit unit summarizes the results of the self-assessments and submits them to the Board of Directors.
- Whenever serious violation is identified or any substantial damage may occur to the company, the internal audit personnel shall make a report and submit all the relevant documents to the independent directors or notify them accordingly.
Ⅲ Procedure for self-assessment of internal control
IV. Deployment of internal audit personnel
- Designated audit personnel have been appointed for the internal audit unit of the company, including 1 Audit General and 1 Audit Administrator (a total of 2 audit staffs).
- The appointment and removal of the company’s audit supervisor should be reported to the board of directors for approval. The appointment, dismissal, evaluation, salary and remuneration of internal auditors shall report to the chairman for approval by the audit supervisor.