Organization and Operation of Internal Audit
At WT Microelectronics, the Internal Audit Department (referred to as “the Department” hereunder) is an independent unit under the Board of Directors. There are two full-time auditors in the unit, including the Internal Auditing Officer and one auditor.
The purpose of internal audits is to assist the Board of Directors and managers in inspecting and reviewing defects in the internal control systems, measure operational effectiveness and efficiency, and to make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.
The Department shall implement the annual audit plan, passed by the Board of Directors, auditing the scope that covers all operations of WT Microelectronics and each subsidiary company. The Department shall also implement special audit plans separately based on actual needs. After implementing each audit plan, the Department shall present the written audit reports and follow-up reports, and submit them for review by supervisors before the prescribed statutory limitations. If 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 supervisors. When deal with the preceding conditions, it shall simultaneously submit the materials or notification to the independent directors. The officer of the Department shall attend and deliver a report on the progress of each audit plan to a regular board meeting.
The Department shall review self-inspections of its internal control systems in all internal units and subsidiaries. The Department shall also evaluate and review the implementation of each self-inspection in order to ensure their quality. Moreover, the Department shall collect, organize, and submit all self-inspection reports, together with 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. Before the prescribed statutory limitations, shall submit Internal Control System Statements to the Board of Directors for approval, as well as to the competent authority to publicly announce and report the Internal Control System Statement.