Internal Audit

Internal Audit

Internal Audit

Internal Audit Organization and Operations

Purpose of Internal Audit

To promote sound corporate management, reasonably ensure the achievement of objectives such as operational profitability, performance, and asset security, ensure the reliability of financial reporting and compliance with relevant laws and regulations, and assist the Board of Directors and management in enhancing operational effectiveness and achieving established goals.

Internal Audit Organization

  1. Edison Opto has established an Internal Audit unit under the Board of Directors, dedicated exclusively to internal audit work. The staffing of the Internal Audit unit includes one audit supervisor and one auditor, with adjustments to be made as needed according to actual operations.

     

     

  2. According to the Regulations for Implementing Internal Audit, the appointment and dismissal of the Chief Audit Officer shall be approved by the Audit Committee and resolved by the Board of Directors, and reported to the competent authority for recordation through the internet information system within two days from the date of occurrence.
  3. According to the Regulations for Implementing Internal Audit, the appointment, evaluation, and remuneration of internal audit personnel shall be submitted by the Chief Audit Officer to the Chairman for approval (handled in accordance with the company’s salary cycle procedures).
  4. Internal audit personnel shall meet the statutory qualification requirements and continue professional education to complete the required hours.
  5. Information such as the name, age, education, experience, years of service, and training of internal audit personnel shall be reported to the competent authority for recordation through the internet information system by the end of January each year in the prescribed format.
  6. The General Provisions of the Internal Control System and the Regulations for Implementing Internal Audit shall be implemented after approval by the Board of Directors, and the same applies when revisions are made.

Operation of Internal Audit

  1. Scope of Audit
    The scope of audit includes examining and reviewing the adequacy and effectiveness of Edison Opto's internal control system, and providing timely recommendations for improvement to ensure the continuous and effective implementation of the internal control system and to serve as a basis for its review and amendment.
  2. Audit Subjects
    Audit subjects include all departments of Edison Opto and its subsidiaries.
  3. Audit Method
    In addition to reviewing the results of self-inspection and evaluation of the internal control system conducted by all departments and subsidiaries, the internal audit unit also inspects the control operations of various activities under Edison Opto's internal control system to measure their effectiveness, compliance, and impact. The frequency and content of each audit cycle are determined in accordance with laws and regulations as well as the company’s internal and external operating environment and risk assessment at the time. Important procedures or special cases may be audited at any time or on an irregular basis.
  4. Audit Reports
    For each year’s audit tasks, auditors shall select audit items and frequency based on risk assessment results and submit the audit plan for the following year to the Board of Directors for approval before December each year. Based on this, they shall examine and evaluate Edison Opto's internal control system. After examination and evaluation, an audit report shall be prepared. The audit report shall include identified deficiencies and recommendations, and follow-up improvement reports shall be prepared regularly."