Internal Audit

Internal Audit

Ability’s Internal Audit is an independent functional department that reports directly to the Board of Directors. In addition to presenting to the Board during each regular board meeting, the Internal Audit also reports to the Chairman and the Audit Committee on both quarterly and needed basis.
The Internal Audit conducts audits on financial and business operations on both regular and irregular basis to understand and assess the practice, operation, and effectiveness of the internal controls. It also provides improvement reports and suggestions about cost effectiveness for quality improvement, operation efficiency, and risk control.

The task of Internal Audit is carried out according to the plan approved by the Board of Directors. Such plan is made according to the risks that have been identified. Additional special audits and reviews are conducted as needed.

After carrying out the audit, the Internal Audit issues audit reports and improvement reports to the Board of Directors and the management team so they can inspect and review defects in the internal control system as well as measure operational effectiveness and efficiency, while ensuring the sustained operating effectiveness of the systems and providing a basis for review and correction.

The Internal Audit reviews self-assessments report filled in by all the departments and subsidiaries. The Internal Audit is responsible to verify the auditing activities indeed took place. It also reviews the submissions to ensure the quality of the process.
The consolidated results of the self-assessments and the corrections from deficiencies or irregularities of the internal control system discovered by Internal Audit are used as the basis for the Board of Directors and general manager to prepare the Internal Control System Statement.

The communications between the independent directors and the Chief Internal Auditor

The communications between independent directors and the Chief Internal Auditor are mainly held in the form of emails and meetings. Emails are exchanged once a month, and meetings are held quarterly, and the suggestions put forward by independent directors in meetings are included in the scope of subsequent audits.

 

Summary of previous communications between independent directors and the Chief Internal Auditor:

Date	Attendees	Items	Results	File
2024/03/08  Audit Committee	Independent directors: - Chen, Chien-Hung - Huang, Chih-Chen - Huang, Kuo-Lun Chief Internal Auditor: - Hu, Sheng-Chi	1. The internal audit report for the fourth quarter of 2023 2. The internal audit report for the first quarter of 2024 3. Statement of Internal Control System of 2023	No opinion
2024/03/08 Before Board meeting (individually)	Independent directors: - Chen, Chien-Hung - Huang, Chih-Chen - Huang, Kuo-Lun Chief Internal Auditor: - Hu, Sheng-Chi	1. Discussion of audit work 2. ESG Report	Independent directors: Strengthen the management of dangerous and flammable items.
2024/05/10 Audit Committee	Independent directors: - Chen, Chien-Hung - Huang, Chih-Chen - Huang, Kuo-Lun Chief Internal Auditor: - Hu, Sheng-Chi	The internal audit report for the first quarter of 2024	No opinion
2024/08/09 Audit Committee	Independent directors: - Chen, Chien-Hung - Huang, Chih-Chen - Huang, Kuo-Lun Chief Internal Auditor: - Hu, Sheng-Chi	1. The internal audit report for the second quarter of 2024 2. Revision of internal audit implementation rules	No opinion
2024/08/09 Before Board meeting (individually)	Independent directors: - Chen, Chien-Hung - Huang, Chih-Chen - Huang, Kuo-Lun Chief Internal Auditor: - Hu, Sheng-Chi	1. Discussion of audit work 2. ESG Report	Independent directors: cyber security exercises shall be conducted periodically.
2024/11/08 Audit Committee	Independent directors: - Chen, Chien-Hung - Huang, Chih-Chen - Huang, Kuo-Lun Chief Internal Auditor: - Hu, Sheng-Chi	1. The internal audit report for the third quarter of 2024 2. The Audit Plan for 2025 3. The internal control system of the management of sustainability information.	No opinion

 

 

The communications between the independent directors and CPAs

Independent directors and CPAs hold a communication meeting at least once a year, and the topics include the financial situation of the company and subsidiaries, materiality, audit scope and recent regulatory amendments.

Summary of previous communications between independent directors and CPAs:

Date	Attendees	Items	Results	File
2024/03/08 Before Board meeting (individually)	Independent directors: ・Chen, Chien-Hun ・Huang, Chih-Chen ・Huang, Kuo-Lun PWC CPAs	Conclusion of the annual audit Audit scope and Materiality Audit report and key audit matters Independence of CPAs Audit Quality Index (AQI) Information nformation sharing (ESG...)	No opinion
2024/08/09 Before Board meeting (individually)	Independent directors: ・Chen, Chien-Hun ・Huang, Chih-Chen ・Huang, Kuo-Lun PWC CPAs	Summarize Review scope and Materiality Review report and other communication matters Independence of CPAs Information sharing (ESG...)	PWC CPAs: Strengthen cyber security risk management, identification, processing and supervision.