The internal audit system and independent supervisors of Walsin Technology Corporation (the Company) are intended to ensure detailed reporting of irregularities and an effective internal control mechanism for the senior management of the Company to steadfastly address internal control issues and seek improvement. The internal audit office of the Company is an independent unit with chief auditor and dedicated auditors report directly to the board of directors of the Company. The director of the internal audit office is required to report to the board meeting on a regular basis and report to the chairman, supervisors of the board, and president of the Company on an as-needed basis.
The internal audit system stipulates the audit process, reporting system, audit checkpoints, and operations subject to audit, including all the operations of the Company per se and all its subsidiaries in order to help the senior management of the Company timely identify existing and/or potential internal control issues. Primary audit activities shall follow the annual audit plan approved by the board of the Company, while the board of the Company may also require audit on an ad-hoc basis.
At the end of every year, the internal audit office shall decide the audit categories of the following year based on risks assessment. The internal audit office shall also review the results of audit conducted independently by individual business units in order to examine the overall effectiveness of the Company’s internal control design and implementation. All the audit findings and corrections accordingly made shall be recorded, tracked, and timely provided to the senior management for evaluation of the improvement of issues audited.