Organization and Operation of Internal Audit Division
▍Organization
According to the Regulations Governing Establishment of Internal Control Systems by Public Companies issued by the Financial Supervisory Commission, R.O.C. (hereinafter referred to as the FSC) on Sep. 22, 2014, public companies are required to set up an internal auditing unit attached to the board of directors, conduct independent and full-time internal audits, conduct regular and irregular business audits, conduct financial audits, and assist the board and managers to examine and review deficiencies in internal control systems and measure the effectiveness and efficiency of operations, as well as provide timely recommendations for improvements to ensure continuous and effective functioning of the internal control systems.
▍Staffing
The company's internal audit unit has a full-time internal audit supervisor who is appointed and dismissed by the board of directors. It is assigned a suitable full-time auditor in accordance with the company's scope, business situation, management needs, and relevant laws and regulations. The appointment, dismissal, evaluation, salary and remuneration of internal auditors is signed by the audit supervisor and approved by the chairman. A deputy is always available. In addition to meeting eligibility requirements of the FSC, unit members study professional auditing courses every year.
▍Business Scope
| 1. | The company’s managers designed the Evergreen Steel Corp. Internal Control System in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies issued by the FSC, taking into account the company’s industrial characteristics and actual operating activities, with approval of the board of directors. | ||
| 2. | The Audit Department annually reviews the self-assessment reports of the company and its subsidiaries, and notes internal control deficiencies and improvements. The board of directors and president evaluate the effectiveness of the overall internal control system and issue an Internal Control System Statement to ensure that the design and implementation of the internal control system achieve the following three objectives:
|
||
| 3. | The Audit Department completes the online reporting of the following specified items within the time limit specified by the FSC. |
| Period of Declaration | Method of Declaration | Declaration Content |
|---|---|---|
| Before the end of January each year | Online | List of internal auditors |
| Before the end of January each year | Online | Details of training for internal auditors |
| Before the end of February each year | Online | Implementation of the previous year’s audit plan |
| Before the end of March each year | Online | Internal Control System Statement |
| Before the end of May each year | Online | Internal control deficiencies and improvements as noted in the internal audit of the previous year |
| Before the end of December each year | Online | Audit plan for following year |
▍Internal Audit
The Company has formulated important relevant policies and regulations in response to the laws of Taiwan and other countries, including personal data protection, confidentiality, anti-bribery, anti-discrimination, environmental protection, intellectual property protection, anti-insider trading, anti-unfair competition, and labor protection, and striven to achieve corporate sustainable development. To ensure the implementation of internal compliance policies, the Human Resources Department is the unit dedicated to the implementation of ethical management and the supervision of each unit's implementation. It is also responsible for assisting the Board of Directors and the management in checking and evaluating whether the preventive measures established for the implementation of ethical management are effective; assessing compliance during relevant business processes and preparing reports; and reporting to the Board of Directors once a year.
We ensure that our business processes meet relevant requirements through internal controls and audit measures. All employees of Evergreen Steel are governed by compliance policies and various departments work together to ensure implementation is complete. We require employees to maintain integrity and conduct themselves ethically in a safe and healthy work environment that is conducive to labor safety.