Internal Audit Operations
Internal Audit Organization
According to the "Guidelines for the Establishment of Internal Control System for Public Company" enacted by Financial Supervisory Commission (FSC), FET Internal Audit is established under BOD’s direct supervision; and Chief Auditor is appointed by BOD. The required audit organization is planned by Chief Auditor based on business activities and audit plan. Both Internal Audit organization and audit plan are approved by BOD.
Internal Audit Operations
To ensure Far EasTone Telecommunication Co., Ltd. (FET) effectively implement internal control system according to the "Guidelines for the Establishment of Internal Control System for Public Company" and corporate governance, the Internal Audit Charter (IAC) of FET must be approved by the Board of Directors (BOD). The IAC stipulates audit objectives and guidelines, organization, activities and practice to achieve the goal and mission of Internal Audit operation.
Audit ObjectivesThe objectives of internal audit are to assist the BOD and management team to identify the deficiency of the internal control system, to assess the effectiveness and efficiency of the operation, and to provide appropriate improvement suggestions to ensure the effectiveness of internal control system as well as for continuous improvement.
Mission of Internal Audit
- Compliance of legal, regulatory, policy, and procedures
- Reliability of financial / operation reporting
- Effectiveness and efficiency of operations
- To ensure resource efficiently utilized and managed
- Guard and use of fixed and intangible assets
- To ensure appropriate processes of fraudulent & risk prevention and profit & opportunity maximization are in place
- Corporate governance assistance to BOD
Guideline of Audit Activities
◎ Propose and approval of annual audit plan:Internal Audit should plan annual audit tasks based on regulation, risk assessment, and instruction by the BOD and Supervisor, which must comprise at least audit items, audit schedule, and audit resource allocation. Annual audit plan and revision should also be approved by the BOD.
◎ Auditing Procedures:Auditors should plan, organize, staff, direct and control audit task based on Internal Audit Charter.
- Opening meeting of an audit task
- Conduct audit field work
- Closing meeting of an audit task
- Audit report
- Audit findings follow up and report
◎ Internal control system – Control Self Assessment (CSA)：FET, its subsidiaries and affiliates should conduct Internal control system-Control Self-Assessment (CSA), supervised by President and EVPs. Internal Audit is responsible to review the implementation and result of CSA performed by each function, subsidiaries and affiliates and issue audit opinion on audit findings and follow-up status as for Chairman and President’s consideration for Declaration of Control Self-Assessment, which should be approved by the BOD.
◎ Subsidiary governanceSubsidiary governance includes subsidiaries and affiliates. Internal Audit will conduct routine and ad hoc audit based on the Internal Audit Charter, and collect information in order to achieve the target of subsidiary governance and mission of internal audit.