Internal Audit

ShunSin’s internal audit office is an independent department which is directly affiliated to the board. It reports to the board on every board of directors meeting and to chairmen, audit committee and general manager if necessary.

Implementation rules for internal audits state that internal audit should check internal control over company operation procedure and report the appropriateness, effectiveness and efficiency of internal control design and routine practical procedures. It covers company and its affiliates’ every operation.

Job matrix of internal audit team:
  • Assist the board of directors and mangers in inspecting and reviewing defects in the internal control systems as well as measuring operational effectiveness and efficiency, and shall make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.
  • Internal audit shall formulate annual audit plans based on the results of the risk assessment, including matters to be audited monthly, and shall faithfully implement the annual audit plans, so as to check its internal control systems, and prepare audit reports, annexing working papers and relevant materials. Internal audit shall communicate fully with the audited unit regarding the inspection results of the annual audit items, and shall faithfully disclose in audit reports any defects and irregularities of the internal control systems discovered in inspection and, after having presented the reports, follow up on the matters and prepare follow-up reports at least on a quarterly basis until such time as correction is made, to ensure that the relevant departments have taken appropriate corrective measures in a timely manner, and any defects, irregularities, and the status of corrections in the internal control systems as major items of performance evaluation for each department.
  • After having presented the audit and follow-up reports, Internal audit shall submit the same for review by the Audit Committee by the end of the month next following the completion of the audit items. And internal auditors discovering any material violation or any likelihood of material damage to the company shall promptly prepare and present a report and notify the Audit Committee.
  • Internal audit officer shall also attend and deliver a report to a board of directors meeting.
  • Internal audit shall first see that all internal departments and subsidiaries conduct self-inspections at least once each year, have its internal audit departments review the self-inspection reports prepared by all departments and subsidiaries, and submit the self-inspection reports, together with the reports on the correction of defects and irregularities of internal control systems discovered by its internal audit departments, to serve as the primary basis for the board of directors and general manager to evaluate the overall efficacy of all internal control systems and to produce Internal Control System Statements.
  • When supervising and managing its subsidiaries' audit management shall include all subsidiaries in the internal audit scope in the company's internal audit implementation rules, and regularly, or from time to time, conduct audits. Upon submission of the audit findings and recommendations in reports, the public company shall notify the audited subsidiary to make corrections and prepare follow-up reports on a regular basis, to ensure that proper corrective measures have been taken in a timely manner.

Internal audit team needs to check each department’s self-inspection, including action item execution and action item result by reviewing document.

Internal audit office has full time auditors including audit manager and two auditors.