Life, Health, and Technology

Internal Audit Organization and Operation

Purpose of Internal Auditing

Internal auditing is aimed at assisting the Board of Directors and executives with enhancing corporate management to ensure operation profitability, performance and asset security, reporting reliability, and regulatory compliance.

Internal Auditing Organization

Internal Audit is an independent unit that reports directly to the Board of Directors. Hiring of Internal Audit manager must be approved by the Board of Directors and fulfill qualification requirements specified by the competent authority.The Company currently employs two auditors.

Internal Auditing Operations

Internal auditors shall adhere to the spirit of independence, using objective and fair standpoints in execution of their duties fulfilling duty of care in their profession. Auditors must regularly report on audit operations to supervisors, and audit managers shall present such report in the meeting of the Board of Directors.
Internal auditors execute audit tasks in accordance with auditing plans approved by the Board of Directors. Such plans are based on identified risks. Other project audits or reviews shall be executed where necessary. The aforementioned general audit and project audits involve providing executives with the operating status of internal audit functions and providing an alternative channel through which executives gain understanding of existing or potential internal control deficiencies.After audit reports and follow-up reports are submitted, they are submitted to supervisors for review before the end of the month after completing of auditing items.
The audit office supervises and assists company unites each year with self-assessment and inspection of internal control systems. Such assessments involve inspecting task execution and document review to ensure the quality of execution. Subsequently, self-assessment results are combined with identified internal control deficiencies and improvements to abnormalities. These integrated results shall then serve as the basis for the Company's Board of Directors and General Manager to produce an internal control statement.
The Company's subsidiaries have appointed auditors to take charge of audit tasks, and the Company's audit office shall supervise the audit operations carried out by these subsidiaries.