Audit Room and Its Operations and Functions

Audit system covers all operations including accounting and financial operations, and the procedures to be followed for market surveys, marketing, production, purchasing, warehousing, quality control, human resources, information, research & development, etc. The Audit Room checks and reviews the appropriateness of audit methods and the execution based on the criteria of the audit system. Directly subordinated to the Board of Directors, the Audit Room of the Company is an independent unit composed of one audit manager and one to two auditors. The appointment and the dismissal of the audit manager shall be approved by more than half of the board of directors with major operations and functions provided as follows:

Review the operating procedures

Inspect internal control systems, internal operating procedures, and relevant instructions, and measure the effectiveness and compliance of existing policies and procedures and their impacts on each business activity.

Develop the audit plan

Based on the happened problems or potential risks, the audit manager shall prepare an annual audit plan following laws and report it to the board of directors for approval.

Professional Audit & Review

In addition to check the annual audit plan, the audit manager may perform project audits and review as necessary to keep management informed of any existing or potential internal audit deficiencies in a timely manner.

Review of the
self-assessment

Responsible for reviewing the corporate units and subsidiaries' self-assessments of each operation under their control, the audit manager shall confirm whether or not the designs and practices of such controls are adequate and whether or not the execution of internal controls is effective.

Regular and immediate reporting

Attend and reporting the audit situation to the meeting of the board of directors. Furthermore the audit manager may explain the report to the general manager, the chairman of the board, and the supervisor as necessary.