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
2024/03/08  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 fourth quarter of 2023 The internal audit report for the first quarter of 2024 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	Discussion of audit work 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	The internal audit report for the second quarter of 2024 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	Discussion of audit work 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	The internal audit report for the third quarter of 2024 The Audit Plan for 2025 The internal control system of the management of sustainability information.	No opinion
2025/03/07 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 fourth quarter of 2024 The internal audit report for the first quarter of 2025 Statement of Internal Control System of 2024	No opinion
2025/03/07 Before Board meeting (individually)	Independent directors: ・Chen, Chien-Hung ・Huang, Chih-Chen ・Huang, Kuo-Lun Chief Internal Auditor: ・Hu, Sheng-Chi	Discussion of audit work Corporate Governance ESG	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-Hung ・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 Information sharing (ESG...)	No opinion
2024/08/09 Before Board meeting (individually)	Independent directors: ・Chen, Chien-Hung ・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.
2025/03/07 Before Board meeting (individually)	Independent directors: ・Chen, Chien-Hung ・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 Information sharing(ESG、IFRS18…)	No opinion