Internal Audit System
AUO follows the law to establish an internal control system. Based on the system, the Auditing Administration Div. stipulates the internal audit implementation details. Then, the control systems and procedures are implemented, with their effectiveness and observance evaluated. The scope includes the whole company and its subsidiaries.
AUO's internal Auditing Administration Division is an independent unit directly reporting to the Board of Directors. The unit consists of eight people, including the auditing executive and full-time audit staff. In addition to making audit report to the Board of Directors at regular meetings, reporting also takes place periodically or as needed basis to the Chairman of the Board (CEO) and the Audit Committee.
Audit affairs primarily involve the execution of the audit plan developed by the Board of Directors with identified risk, and the implementation of audit project or review if required. The execution of general and project audit plan can provide the operational status of the internal control system to the management, and help them identify the existing weaknesses or potential risks in time.
Self-assessment of Internal Control
The Division audits the self-examinations done by the various units and subsidiaries, including checking how self-examination is executed, reviewing the documents to ensure implementation quality, and compiling the self-examinations results. Then the internal audit system reports to the Audit Committee and Board of Directors as the basis to evaluate the effectiveness of the overall internal control system, and issue the internal control system statement.