Corporate Governance
Internal Audit Organization and Operations
Phison conducts its internal audit activities in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies” and other applicable laws and regulations. An Internal Audit Office has been established and reports directly to the Board of Directors. The primary responsibilities of the Internal Audit Office are to assist the Board of Directors and management in examining and reviewing deficiencies in the internal control system, evaluating the effectiveness and efficiency of operations, and providing timely recommendations for improvement. These efforts help ensure the continuous and effective implementation of the internal control system and serve as a basis for its ongoing review and enhancement.
Planing | Based on the results of risk assessments, an annual audit plan is developed and submitted to the Board of Directors for approval prior to implementation. |
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Auditing | Appropriate audit procedures are performed in accordance with the audit plan. Any deficiencies in the internal control system or irregularities identified during the evaluation process are truthfully disclosed in the audit report. |
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Report Submission | Upon completion and approval of the audit report, it is provided to the Independent Directors for review by the end of the month following the completion of the audit engagement. |
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Follow-up | Deficiencies in the internal control system and identified irregularities are tracked and monitored. Follow-up reports are prepared at least quarterly until corrective actions have been completed, to ensure that the responsible units have implemented appropriate and timely improvements. |
