Internal Audit

Pou Chen’s Internal Audit Office is an independent unit with one manager and several officers that reports directly to the Board of Directors. Besides informing the Board during its ordinary meetings, it briefs the Chairman and Supervisors on a monthly and needed basis.

All departments of Pou Chen and its subsidiaries are open for review by Internal Audit.

The internal control system clearly states and covers all operational activities that Internal Audit Office needs to perform. According to the audit plan approved by the Board of Directors, the regular audit work is executed to review the internal controls in Pou Chen’s processes with respect to the effectiveness and efficiency of their design, reliability of financial reporting and compliance with applicable laws and regulations. These audits give management an additional channel to identify existing or potential risks in the system, and also provide recommendations for future improvements in a timely manner. Besides, audit reports shall be submitted to and reviewed by the Supervisors by the end of the month next following the completion of these audits.

In addition, the Internal Audit Office also examines the mechanisms and results of self-assessments prepared by department and subsidiaries to ensure the quality of implementation. The Internal Audit Office then consolidates related inspection reports for the Board of Directors and General Manager to evaluate the overall efficiency of internal control system and to generate the internal control system statement.