Internal Audit
Internal Audit
Ability’s Internal Audit function is an independent department that reports directly to the Board of Directors. Besides informing the Board during its ordinary meetings, it briefs the Chairman and the Audit Committee on a quarterly and on as needed basis.
The major functions of Internal Audit are regularly and irregularly performing audits on financial and business operation to understand the practice of internal controls, evaluating the reasonability and effectiveness of internal controls, and providing reports about improvements and suggestions based on the basis of cost and effect for the purposes of quality improvement, operation efficiency and risk control.
The majority of the audit work is executed according to an annual plan, which needs to be approved by the Board of Directors. Such plan will take into account risks that have been identified. Special audits or reviews are conducted as needed.
The combination of the regular audits and the special projects provide management with compliance on the functioning of the internal control system; it gives management an additional channel to learn about existing or possible future weaknesses in the system.
After exercising the audit plan, Internal Audit issues audit reports and improvement reports to assist the Board of Directors and mangers in inspecting and reviewing defects in the internal control system as well as measuring operational effectiveness and efficiency and to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.
The company supplements the review activities by Internal Audit with documented self-assessments by the departments and all subsidiaries. Internal Audit sees to it that these activities do take place, and reviews the submissions to ensure the quality of the process; it consolidates the results of the self-assessments and the corrections of any deficiencies or irregularities of the internal control system discovered by Internal Audit for a basis, which the Board of Directors and general manager produce 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 |
|---|---|---|---|---|
|
2025/03/07 Audit Committee |
Independent directors:
Chief Internal Auditor:
|
|
No opinion |
 |
|
2025/03/07 Before Board meeting (individually) |
Independent directors:
Chief Internal Auditor:
|
|
No opinion |
|
|
2025/05/09 Audit Committee |
Independent directors:
Chief Internal Auditor:
|
|
No opinion |
|
|
2025/08/12 Audit Committee |
Independent directors:
Chief Internal Auditor:
|
|
No opinion |
|
|
2025/08/12 Before Board meeting (individually) |
Independent directors:
Chief Internal Auditor:
|
|
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 |
|---|---|---|---|---|
|
2025/03/07 Before Board meeting (individually) |
Independent directors:
PWC CPAs |
Conclusion of the annual audit
|
No opinion |
|
|
2025/08/12 Before Board meeting (individually) |
Independent directors:
PWC CPAs |
Summarize
|
No opinion |
|