Uni-President-IR

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Corporate Governance

Corporate Governance Important corporate governance information Internal Audit

Internal Audit


Purpose of Internal Audit
The purpose of an internal audit is to examine and assess the adequateness and efficiency of the company’s internal controls system through an independent and objective verification/inquiry process to increase the added value of Uni-President Enterprises Corporation (UPEC) and improve its operation. Internal audits shall facilitate company supervision and assist the board of directors and the management to accomplish the set objectives.

Internal Audit Organization
  1. UPEC's internal audit organization exists as an independent division with a Consultation service section and the Risk Management Team.The appointment and removal of the chief audit executive may only be approved by the Audit Committee and the Board of Directors.
  2. Pursuant to Article 3-4 of “Corporate Governance Best-Practice Principles”, the appointment and removal, performance evaluation and salary of the internal auditors should only be approved by the Chairman.
  3. Two internal auditing staffs have the certifications of Certified Internal Auditor and one internal auditing personnel passes the CPA examination.

Internal Audit Operation
  1. UPEC has established and carries out “internal control systems,” “internal audit implementation rules” and “procedures and methods for internal control self-evaluation operations” according to the Regulations Governing Establishment of Internal Control Systems promulgated by the Securities and Exchange Act.
  2. Internal audits shall be executed in accordance with the audit plans, which shall be approved by the Board of Directors and formulated based on the results of the risk assessment. Special audit plans shall be executed if needed.
  3. After conducting internal audits, UPEC shall prepare and submit the audit report to the Chairman (or authorized person). The internal auditors shall make recommendations and communicate with the audited department if any defect or irregularity is found, and shall follow up on the correction process regularly.
  4. In addition to the Chairman (or authorized person), the audit report and correction process shall also be reviewed by the independent directors and reported to the Board of Directors and the Audit Committee.
  5. The internal audit office shall review the self-evaluation reports prepared by all departments and subsidiaries and submit the self-inspection reports together with the reports on the correction of defects and irregularities of internal control systems. This review shall serve as the primary basis for the Board of Directors and President to evaluate the overall efficacy of all internal control systems and to produce Internal Control System Statements.