Organization and Operation of Internal Audit
Internal Audit Organization
In WT Microelectronics, the Internal Audit Department (referred to as “the Department” hereunder) is an independent unit under the Board of Directors. A total of three full-time Internal Auditing Officer and his/her affiliated auditors are allocated. The appointment and dismissal of the company’s internal audit supervisor are approved by the Audit Committee and passed by the Board of Directors. The appointment/dismissal, evaluation/review, salary/compensation of internal auditors of the Company shall be submitted by the chief internal auditor to the Board Chairperson for approval and to evaluation and review at least once a year.
Internal Audits Purpose
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.
Internal Audits Work
The Department shall implement regular auditing based on the annual audit plan, which is passed by the Board of Directors and based on the identified risks. The Department shall also implement special audit plans separately based on actual needs. After implementing each audit, the Department shall present the audit reports and follow-up reports, and submit them for review by the Audit Committee before the prescribed statutory date. The officer of the Department shall attend and deliver a report on the situation of each audit plan to a regular board meeting.
The Department shall supervise all internal departments and subsidiaries to conduct self-assessments once a year and implement the company’s self-monitoring mechanism. The Department shall adjust the design and implementation of the internal control system in a timely manner in response to changes in the environment. The Departments shall review the self-inspection reports and evaluate the overall efficacy of all internal control systems to serve as the primary basis for the Board of Directors and General Manager to produce Internal Control System Statements.