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Audit Information

Organization chart
Scope of work of the Audit Center
The audit center is directly under board of directors and job description as follows:
(1).To assess the internal control system of the Corporation and its subsidiaries.
(2).To assess whether the plans and operating procedures are efficient enough to achieve the goals of the Corporation.
(3).To ensure the reliability and integrity of financial and operating information, and to audit whether the controls over record keeping and reporting are adequate, effective, and timely.
(4).To audit whether the managers have set up standards to evaluate the economy and efficiency of manpower, equipments,materials and other resources , and have found the ways to improve it as well.
(5).To evaluate whether the operating standards and procedures set by management are complying with applicable laws and regulations, and to ensure that management has taken actions to prevent or correct any bias behavior.
(6).To review whether the management has established appropriate means to safeguard assets from various types of losses such as those resulting from theft, fire, improper or illegal activities, and exposure to the elements.
(7).To review the reliability of regular inventory taking procedures, and to verify the existence of assets by random checking.
(8).To disclose the violations of operating team to violate "Internal audit reward and punishment measures."
(9).To take the education and training of staff to implement prevention (risk control) internal control and self-examination.
(10).To review the self-inspection reports prepared by all departments and subsidiaries and all other affairs handed by the authorities.
Design and Operation of Internal Control Systems
(1).Valuation of board of directors:
Do the right thing in the first time, as to avoid repeated negligence, waste and errors caused for the loss of company resources. Board of directors of Inventec passed a "Internal audit reward and punishment measures" in August 2006. If the employee violates the rules may be punished ,which will affect individual bonuses and promotion opportunities.

(2).Operations of Internal Audit:
According to the rule Regulations Governing Establishment of Internal Control Systems by Public Companies issued by The Securities and Futures Bureau of Financial Supervisory Commission of Executive Yuan R.O.C., the Audit center formulates annual audit plans based on the results of the risk assessment. The annual audit plans include as audit items, at least, the control activities for major financial or business activities, such as for acquiring or disposing of assets, engaging in derivatives transactions, extending loans to others, granting endorsements or guarantees for others, supervision and management of subsidiaries, information flow security inspection, and major transaction cycles such as the sale and receipt cycle and purchase and payment cycle.

(3).Corrective action:
Internal auditors conduct the audit work of operation systems according to the annual audit plans to ensure that the established systems are efficient and are being met, information is reliable, operations are effective and timely. Internal auditors should report the result of their audit work and make recommendations.

(4).Communication circumstance between the supervisor, the independent director and the internal audit supervisor and accountant:
a.Pursuant to Article 15 of the "Guidelines for Public Companies to Establish Internal Control Systems", after the audit report and tracking report being presented, the internal audit supervisor shall submit it to each supervisor for review before the end of the next month after completion of the audit project, and also notify or present it to the independent director.
b.Regarding the instruction of the supervisor during review, the Audit Center will carry out subsequent improvement and tracking operations, and after completion of improvement and tracking, it shall be reported to the supervisor. The results reviewed by the supervisor shall be reported to the Board of Directors in the current month.
c.When the supervisor or the independent director establishes an audit project according to the instruction on important issues of the internal control system of the Company, the Audit Center shall immediately establish an audit project team (or subsidiary supervision) to carry out examination operations. Upon completion of the audit (or subsidiary supervision) project, it shall report the project audit result to the supervisor or the independent director and propose it to the Board of Directors.
d.The internal audit supervisor reports audit schedule, results and tracking report to the Board of Directors every month, and the independent director is satisfied with the implementation of the internal audit operations.
e.The Board of Directors and senior supervisors of the Company attach great importance to corporate governance and internal control system implementation. They not only convene a Board of Directors meeting every month to review such issues as corporate governance, operation, internal control system, etc., but also convene corporate governance meetings every quarter. In addition to routine examination by an accountant, the Board of Directors also appoints an accountant to propose suggestions and descriptions on new laws and decrees regarding the examination part in the corporate governance meeting convened every quarter, and the Board of Directors complies with laws and decrees to adjust the practice and regulation of corporate governance and the internal control system. The supervisor and the independent director communicate the important financial and business situations of the Company at the corporate governance meeting convened every quarter.

(5).To report to the FSC via the Internet-based information system:
a.To report to the FSC for recordation its next year's audit plan by the end of each fiscal year in the prescribed format.
b.To report to the FSC for recordation of internal auditors by the end of January each fiscal year in the prescribed format.
c.To report on the execution of its previous year's annual audit plan within two months from the end of each fiscal year in the prescribed format.
d.To report the Internal Control System Statement within four months from the end of each fiscal year in the prescribed format.
e.To report to the FSC for recordation its corrections of any defects and irregularities of the internal control system discovered during the past year's internal auditing within five months from the end of each fiscal year in the prescribed format.

(6).The Internal Control System Statement:
a.The self-inspection reports of departments and subsidiaries shall be reviewed by audit center. These reports, combined with the corrections of any deficiencies or irregularities of the internal control system discovered by the internal auditors, will be the main references 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.
b.The Internal Control System Statement over the years, please reference the following attached file.

Performance of auditing
Year File Nmae Read
2018 The Internal Control System Statement 2018
2017 The Internal Control System Statement 2017
2016 The Internal Control System Statement 2016