Corporate Governance

Internal Audit Organization 

According to the “Regulations Governing Establishment of Internal Control Systems by Public Companies,” Far Eastern New Century Corporation (hereinafter referred to as our company) has established an audit department, which is subordinate to the Board of Directors. The Audit Chief is appointed after being approved by the Audit Committee and the Board of Directors. Simultaneously, allocate dedicated audit supervisors and internal auditors based on operational scale and management requirements.

Internal Audit Objectives 

• The purpose of internal audit is to assist the Board of Directors and managerial team in establishing a robust internal control system, ensuring its continuous and effective operation while balancing efficiency and effectiveness. 
• To timely identify risks existing within the business and to make recommendations for improvements in line with global ESG trends to enhance corporate value, with digital solutions.

Internal Audit Operations 

The company formulates annual audit plans based on identified risks and implements them after being approved by the Board of Directors. Special audit projects are also conducted as needed to timely discover potential control weaknesses of the internal control systems, and to make recommendations for improvement. After the audit work is completed, audit results are compiled into an audit report which is regularly reported by the Chief Auditor to the Chairman, the Audit Committee, and the Board. Improvement outcomes are continuously tracked to uphold the principles of corporate governance.

Instructions of the Internal Control Self-assessment

Auditors review self-assessment reports of various units (including subsidiaries).  After considering audit findings and improvement measures, they issue a self-assessment conclusion report. This report serves as the basis for the Chairman and the President to evaluate the effectiveness of the internal control system and issue the Internal Control System Statement. It is then submitted for approval to the Audit Committee and the Board of Directors.