Internal Audit
Mirle’s internal audit unit is independent of other units and directly governed by the board of directors. It reports on the audit work to the supervisors and independent directors per month and briefly reports on the audit work at the regular board meetings.
Internal auditors’ responsibilities
Internal auditors’ responsibilities assist the board of directors and managers in checking and reviewing the defects in the internal control system, evaluate the effectiveness and efficiency of the operations, and provide improvement suggestions in a timely manner to ensure the continuous effective implementation of the internal control system. Such suggestions also serve as the basis for reviewing and improving the internal control system. It also helps the board of directors and managers fulfill their responsibilities, thereby duly implementing the corporate governance system.
Operations of the internal audit
Internal auditors have designed an internal audit system based on each department’s internal control system. They review the internal control of each operating procedure with this internal audit system and report on if the design, practical operations, effect, and efficiency of such control measures are appropriate. The internal auditors review each department’s internal control system per year in accordance with laws and regulations, covering the effectiveness and efficiency of operations, the reliability, timeliness, and transparency of reporting, as well as the compliance with applicable rules as well as laws and regulations. They also evaluate the level of risk posed to operations, then prepare an audit plan for the following year, and perform the audit based on the plan after it is approved by the board of directors.
Self-assessment of internal control
Each department conducts a self-assessment from January to February per year to assess the design and implementation of various internal control measures during the prior year. The internal audit unit evaluates if such measures are effective. The internal control defects and unusual operations discovered by the audit unit serve as the basis for the board of directors and the President to evaluate the effectiveness of the entire internal control system and issue a statement of the internal control system.
Implementation of internal audit
An audit report contains the purpose of an audit, indicates the scope of the audit, the audit procedure, as well as the audit results. If there are any defects or unusual operations in the internal control system, the responsible department will be required to fill in the corrective measures and a scheduled completion date in an Internal Audit Defect Correction Report Form. When the date is due, the internal auditors will follow up to check if the corrective measures have been completed. The internal audit department is staffed with two to three full-time auditors to audit various operating procedures and management control measures involved in the nine major transaction cycles. The auditees include the Company, all subsidiaries, and sub-subsidiaries.
Appointment and dismissal of internal auditors
The appointment, dismissal, evaluation, and remuneration of the Company's internal auditors are handled in accordance with the Company's regulations on the personnel and salary cycle. We carry out an evaluation twice per year. The appointment, dismissal, evaluation, and remuneration are signed off by the chief auditor and submitted to the Chairman for approval.
