Senao International Co., Ltd.
The group’s Office of Auditing
The group’s Office of Auditing is directly governed by the Board of Directors of Senao and is responsible for implementing various internal controls within the Company and auditing the annual cycle work plan. The Company’s chief internal auditor regularly communicates the audit report results with the independent directors. In the event of special circumstances, the chief internal auditor will report to the independent directors immediately. The communication between the independent directors and the chief internal auditor is smooth.
The Company has the Corporate Governance Best-Practice Principles in place, which is disclosed in the operating procedures in the Investors area of the Company’s official website. According to Article 3 of the principles, “the appointment, dismissal, evaluation, and remuneration of internal auditors shall be approved by the Chairman of the Board of Directors”; and Article 28 “the appointment and dismissal of the chief internal auditor shall be approved by the Audit Committee and approved by resolution of the Board of Directors.”
Organizational chart of the Office of Auditing and responsibilities
Tasks of the Office of Auditing
Based on the results and defects of the annual audit, the risks from the main operating processes assessed in each cycle, the Audit Office, after confirming with the relevant responsible supervisors, will formulate an annual audit plan for the following year:
- • Auditing of business operations (regularly/annually, including subsidiaries)
- - Legal compliance
- - Procedures for Acquisition or Disposal of Assets
- - Supervision and management of subsidiaries
- - Management of related-party transactions
- - Information security inspection and compliance with the Personal Data Protection Act
- - Management of board meeting operations
- - Management of the operations of the Remuneration Committee
- - Management of the operations of the Review Committee
- - Major operating cycles:
- Sales and payment collection cycle
- Purchase and payment cycle
- Financial reporting cycle
- Salary cycle
- Financing cycle
- Investment cycle
- Inventory cycle
- Information cycle
- Audit of compliance with the Personal Information Protection Act
- Management of other operations
- - Regulations Governing Trading of Derivatives (per month)
- - Regulations Governing Making of Endorsements/Guarantees (per quarter)
- - Regulations Governing Loaning of Funds (per quarter)
- - Seal management
- - Invoice management
- - Budget management
- - Liability commitments and contingencies management
- - Financial and non-financial information management
- Self-assessment and review of the Company’s internal control system (once per year)
- Auditing of subsidiaries’ audit management and execution of the parent company’s audit plan (including major cycles, projects, and internal control self-assessment/per year)
- Participation in and auditing of projects