Internal Audit
M31 has established an internal audit unit under the Board of Directors and employed a full-time dedicated auditor in accordance with the company’s size, business conditions, management needs, and other relevant laws and regulations. The auditor is in charge of evaluating the internal control systems and improving the integrity, rationality, and effectiveness of management policies. The performance assessment, salary and remuneration of internal auditors are reviewed and approved by the board of directors or the chairman of the board, and are stipulated in the ” Corporate Governance Practice Principles”.
According to the charter of Internal Audit, an internal audit aims to review the internal controls of the company’s operating procedures, and to report on the design and the routine implementation of those controls with respect to its adequacy, effectiveness, and efficiency. The audit scope covers all operations and subsidiaries of the company.
The internal audit unit shall work with reference to the audit plan, which is developed on the basis of risk assessment results and then approved by the Audit Committee and the Board of Directors. The execution result of the audit plan shall be reported to the Audit Committee and the Board of Directors on a regular basis or by request.
The internal audit unit shall review the self-assessments executed by each department, including confirming the implementation of self-assessments and ensuring the execution quality by verifying relevant documents. Then the self-assessment results shall be compiled and reported to the Audit Committee and the Board of Directors.
The purpose of internal audit is to assist the Board of Directors and managers to review defects in the internal control systems, evaluate the operational effectiveness and efficiency, and to provide timely suggestions for improvements. This ensures the on-going effective implementation of the internal control systems and offers a basis for reviews and revisions.