The Company has established an internal audit unit as an independent entity under the Board of Directors. A full-time Chief Auditor and an appropriate number of internal audit staff and deputies are assigned to the unit. The appointment and dismissal of the Chief Auditor shall be approved by the Board of Directors. The appointment, dismissal, performance evaluation, and compensation of internal audit personnel shall be submitted by the Chief Auditor for the Chairman’s approval.
The Company has established an internal control system in accordance with applicable laws and regulations. The internal audit unit formulates the Internal Audit Implementation Guidelines based on this system to execute audits and assess the effectiveness of the system’s design and implementation, as well as the Company’s compliance with relevant regulations. The scope of audits covers all departments of the Company and its subsidiaries.
Audit activities are carried out in accordance with the annual audit plan approved by the Board of Directors. This plan is developed based on regulatory requirements and the results of risk assessments. Special audits are also conducted as necessary. Audit reports are submitted to the Chairman, Supervisors, and Independent Directors on a monthly basis or as needed, and are presented at Board meetings.
Internal audit personnel communicate audit findings to management to help them understand existing or potential deficiencies, risks, and improvements. They also review the self-assessment reports on internal controls submitted by each department and subsidiary, which serve as a key reference for the Board of Directors and the General Manager in evaluating the overall effectiveness of the internal control system and issuing the Internal Control System Statement.