Internal audit organization

We have an independent Auditing Office under the Board of Directors and the appointment of the supervisor to the internal audit organization must be approved by the Board of Directors.

There are two full time employees dedicated to Internal Audit, including one supervisor and one staff member.

Objectives of internal audit

Internal auditing can help the Board and managing officers to check and double-check the deficiency of the internal control system, to measure the effect and efficiency of corporate operation, to provide timely suggestions for further improvement, to confirm the proper execution of the internal control system and to get guidelines for amending the internal control system.

 Audit implementation

The charter of Internal Audit is to review the internal controls in the company's 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 a day-to-day basis. All parts of the company and its subsidiaries are open for review by Internal Audit.

The majority of the audit work is executed according to an annual plan, which needs to be approved by the Board of Directors. Such plan will take into account risks that have been identified. Special audits or reviews are conducted as needed. The combination of the regular audits and the special projects provide management with feedback on the functioning of the internal control system; it gives management an additional channel to learn about existing or possible future weaknesses in the system, which allows management to address them in a timely manner.

The company supplements the review activities by Internal Audit with documented self-assessments by the divisions and all regions. Internal Audit sees to it that these activities do take place, and reviews the submissions to ensure the quality of the process; it consolidates the results of the self-assessments for the Board of Directors.