Internal Audit
The Internal Audit of the Company is an independent unit and directly subordinated to the Board of Directors. In addition to regular meeting reports in the Board of Directors, it also reports to the Directors, Supervisors and Chairman of the Board immediately when necessary to practice the spirit of corporate governance.
The Company’s internal control system explicitly stipulates the internal control of the Company’s operating procedures for internal audit and review, and reports whether the design and actual daily operations of such controls are appropriate; its scope includes all operations, units and subsidiaries of the Company.
The audit work is mainly executed in accordance with the audit plan approved by the Board of Directors. The audit plan is drawn up based on the identified risks, and project audits or reviews are executed as required. Combined the execution of the aforementioned general audits and project audits, Internal Audit provides management with objective confirmation and suggestions on the operation of internal control functions, and provides timely additional channels for management to understand existing or potential internal control deficiencies, so as to respond in a timely manner.
Internal Audit reviews the self-assessment work of internal control system implemented by each unit, including checking whether the work is implemented and reviews the documents to ensure the quality of the implementation, and combines the self-assessment results, with the internal control deficiencies found by the Auditing unit and abnormal item improvement situation, serves as the basis for recommending that the Company’s Board of Directors to issue the Internal Control Statement.
The Company's Internal Audit unit has 1 full-time auditor. Auditor participates in the advanced training of internal audit related courses in accordance with regulations every year.