Internal Audit
Internal Audit Organization
The Company's Audit office is an independent unit that reports directly to the Board of Directors. The Audit Office shall consists of qualified persons in an appropriate number as full-time internal auditors based on the Company’s scale, business conditions, management needs, and other applicable laws and regulations. The Audit Office is comprised of a Chief Audit Executive and three full-time dedicated internal audit specialists. Any appointment or discharge of the Chief Audit Executive shall be approved by the Board of Directors, and be reported to the FSC for recording via the internet-based information system by the 10th of the following month.
The Charter of Internal Audit is to review the internal controls in the company's business processes and to report on those controls with respect to the adequacy, effectiveness, and efficiency of their design as well as their actual functioning on day-to-day basis. All parts of the Company and its subsidiaries are open for review by the Audit Office.
Regular internal audits are executed according to the annual audit plan, which needs to be approved by the Board of Directors. Such plan will take into account risks that have been identified. Special audit projects are implemented as needed. These audits enhance internal control and provide timely recommendations for future improvements. In accordance with corporate governance, audit reports are regularly submitted to and reviewed by the Audit Committee.
The Method and Schedule of Contacts among The Head of Internal Audit, CPA, and Independent Directors:
- In additional to emailed monthly audit reports to independent directors, the head of internal audit reported major findings and suggestions to independent directors during Audit Committee meetings.
- Summarized quarterly consolidated and standalone financial statements information should be delivered and communicated with independent directors during Audit Committee meetings in order to comply with regulations defined in No 39 Statements of Auditing Standards and No.0930105373 of Securities and Futures Bureau.
- Audit Committee should have no less than one meeting per quarter. Summary discussion among independent directors, CAP and internal audit of each Audit Committee meetings for 2023 as following:
- 2023.03.10
- 3rd term 11th meeting
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- Presented the results of 4Q22 internal audit.
- Authorized 2022 Internal Audit Report Declaration after reviewed the internal audit procedures and results of self-evaluation.
- CPA presented 2022 financial reports. Communicated for major financial estimation, Tax and Securities governing regulations updates. CPA also presented 2023 audit schedule and identified major risks items.
- Approved the evaluation of the independence and suitability of the CPAs and audit fee.
- Approved the issuance of new common shares for cash to sponsor the issuance of the overseas depositary shares (”DR Offering”) and/or issuance of new common shares for cash in public offering and/or issuance of new common shares for cash in private placement (”Private Placement Shares”) and/or issuance of overseas or domestic corporate bonds (straight corporate bonds, convertible corporate bonds) in private placement and/or issuance of overseas or domestic corporate bonds (straight corporate bonds, convertible corporate bonds).
Suggestions from independent directors:
- None.
- 2023.05.05
- 3rd term 12th meeting
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- Presented the results of 1Q23 internal audit.
- CPA presented 1Q23 financial reports. Communicated for major financial estimation and governing regulations updates.
Suggestions from independent directors:
- Independent directors asked PTI to report the ownership of patents applied by employees and its preservation measures next meeting.
- 2023.06.08
- 4th term 1st meeting
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- Elect the chairperson of the fourth term for the Audit Committee.
Suggestions from independent directors:
- None.
- 2023.06.27
- 4th term 2nd meeting
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- Approved the proposed disposal the assets of overseas subsidiary.
- Approved the proposed disposal the equity of overseas subsidiary.
Suggestions from independent directors:
- An independent director asked PTI about the operating procedures and potential concerns of the equity disposal case, and the Chief Finance Officer and Internal Audit Manager gave an explanation.
- 2023.08.04
- 4th term 3rd meeting
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- Presented the results of 2Q23 internal audit.
- CPA presented 2Q23 financial reports. Communicated for major financial estimation and governing regulations updates.
Suggestions from independent directors:
- An independent director asked PTI how to audit the overseas subsidiaries recently, and recommended that should arrange on-site audit, and the Internal Audit Manager replied to the question; In September of the same year, the internal audit team had conducted on-site audit of the overseas subsidiary.
- 2023.10.31
- 4th term 4th meeting
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- Presented the results of 3Q23 internal audit.
- Established 2024 internal audit schedule.
- CPA presented 3Q23 financial reports. Communicated for major financial estimation, Key Audit Matters (KAM) of 4Q23 governing regulations updates.
- Approved the proposed plans to evaluate investment in Southeast Asia.
Suggestions from independent directors:
- An independent director asked PTI about information security staffing and data backup operations, and Internal Audit Manager gave an explanation. The independent director suggested that it would be appropriate for the information security officer to report briefly on the implementation status in the risk management committee.