Communication between Independent Directors and Internal Audit Manager and CPAs.
1. Methods of communication between Independent Directors and Internal Audit Manager and CPAs :
A. The Internal Audit Department except for the monthly audit report submission with the items need to be improved to the Independent Directors, the Internal Audit Manager should also at least summon an Audit Committees meeting quarterly reporting the audit scopes, results and follow-up updates.
B. The Company's CPAs present the findings of their review or audit reports regarding the financial results and internal control of the Company and its subsidiaries during the Audit Committee's quarterly meetings and separate meeting at least twice a year. And also required to communicate to the Audit Committee the impact of IFRSs updates and announcements, any issues under applicable laws and regulations that might affect the financial reports, and whether to adjust the entries.
C. The Internal Auditor Manager and Independent Directors and CPAs can communication with the others as needed. The communication channels are seamless.
D. The Company has obtained the Audit Quality Indicators (AQIs) and the Independence Statement by KPMG, and assesses the independence and suitability of CPAs. The evaluation results are already reported to the Audit Committee meeting on November 7, 2023, and reported to the Board of Directors for approval.
2.
The Major items of communication between the Independent Directors and the Internal Audit Manager :
The communication mechanism between the Independent Directors and the Internal Audit Manager works well and effectively.
The major communications in 2023&2022 are summarized as follows:
| Date |
Communication Focus |
Recommendations and Results |
| 2023.11.07 |
1. The internal audit report for the third quarter of 2023.
2. Submission of the Company's annual audit work plan for 2024. |
No Other Suggestions |
| 2023.08.08 |
The internal audit report for the second quarter of 2023. |
No Other Suggestions |
2023.05.04 |
1. The internal audit report for the first quarter of 2023.
2. Revision of the Company's "Rules Governing Financial and Business Matters Between this Corporation and its Affiliated Enterprises." |
No Other Suggestions |
2023.02.23 |
1. The internal audit report for the fourth quarter of 2022.
2. The effectiveness of and the statement on the "Internal Control System" for 2022. |
No Other Suggestions |
| Date |
Communication Focus |
Recommendations and Results |
| 2022.11.01 |
1. The internal audit report for the third quarter of 2022.
2. Submission of the Company's annual audit work plan for 2023. |
No Other Suggestions |
| 2022.08.02 |
The internal audit report for the second quarter of 2022. |
No Other Suggestions |
| 2022.05.03 |
The internal audit report for the first quarter of 2022. |
No Other Suggestions |
| 2022.03.07 |
1. The internal audit report for the fourth quarter of 2021.
2. The effectiveness of and the statement on the "Internal Control System" for 2021. |
No Other Suggestions |
3. The Major items of communication between the Independent Directors and the Internal Audit Manager and CPAs
:
The communication mechanism between the Independent Directors and the Internal Audit Manager and CPAs works well and effectively.
The major communications in 2023&2022 are summarized as follows: :
| Date |
Communication Focus |
Recommendations and Results |
| 2023.08.08 |
Significant differences and adjusting entries in the consolidated financial report for the second quarter of 2023 :
1. Independence
2. Responsibilities of reviewers in reviewing interim financial reports.
3. Types of review conclusions issued.
4. Scope of the review.
5. Review findings.
6. Other mattes to be paid attention to.
7. Important accounting standards or interpretation letters, securities management laws and regulations, and updates on tax laws and regulations. |
No Other Suggestions |
| 2023.02.23 |
Significant differences and adjusting entries in the consolidated financial report of 2022 :
1. Independence
2. Responsibilities of auditors in auditing financial reports.
3. Types of audit opinions issued.
4. Scope of the audit.
5. Audit findings.
6. Other mattes to be paid attention to.
7. Integration strategy of climate action and decarbonization vision.
8. Important accounting standards or interpretation letters, securities management laws and regulations, and updates on tax laws and regulations. |
No Other Suggestions |
| Date |
Communication Focus |
Recommendations and Results |
| 2022.08.02 |
Significant differences and adjusting entries in the consolidated financial report for the second quarter of 2022 :
1. Independence
2. Responsibilities of reviewers in reviewing interim financial reports.
3. Scope of the review.
4. Types of review conclusions issued.
5. Review findings.
6. Key audit matters.
7. Important accounting standards or interpretation letters, securities management laws and regulations, and updates on tax laws and regulations. |
No Other Suggestions |
| 2022.03.07 |
Significant differences and adjusting entries in the consolidated financial report of 2021 :
1. Independence
2. Responsibilities of auditors in auditing financial reports.
3. Scope of the audit.
4. Audit findings.
5. Main impact of Auditing Standard No. 75
6. Other mattes to be paid attention to.
7. Important accounting standards or interpretation letters, securities management laws and regulations, and updates on tax laws and regulations. |
No Other Suggestions |
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