Internal Audit

Internal Control System

In accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies” issued by the Financial Supervisory Commission of the Executive Yuan, Inventec internal control system is designed by the managers for the purpose of implementing integrity management. It is endorsed by the Audit Committee, approved by the Board of Directors, and then implemented by the Board of Directors, managers and all employees, aiming to promote the sound operation the company and reasonably assure the achievement of the following objectives:

Operational effectiveness and efficiency.
Reliable, timely, transparent, and compliant reporting.
Compliance with relevant laws and regulations.

Internal Audit System

Audit Center

Scope of internal control audit

The “preventive (risk control) internal control audit plan” approved by the Board of Directors covers all control operations within the company and its subsidiaries.

Internal control audit approach

The Audit Center formulates non-routine audit indicators, legal compliance audit indicators, and indicator checkpoints based on the high-risk audit policy approved by the Board of Directors, internal control audit requirements, the “Ethical Corporate Management Best Practice Principles” and operational risk assessment. Internal control audits are conducted in accordance with the “Preventive (Risk Control) Internal Control Audit Measures”.

Internal control self-assessment

Inventec conducts the preventive (risk control) self-assessment exercise once a year, and subsequently the Audit Center reviews the preventive (risk control) self-assessment reports of all units and subsidiaries. The results, along with the improvement of internal control findings and anomalies identified by the audit unit, serve as the basis for the Board of Directors and the President to evaluate the effectiveness of the overall internal control system and should be announced and reported on the website designated by the Financial Supervisory Commission within three months after the end of each fiscal year.

Internal Control Audit Report

The internal control audit report and follow-up report will be submitted to the Audit Committee for review by the end of the month following the completion of the audit project. The Audit Center will make records of the review, tracking, and corrective actions of the internal control findings. These records, coupled with the review comments of the Audit Committee, will be reported to the Board of directors.
In cases where significant findings and high-risk businesses are identified in the internal control audit, the Audit Center will request the Board of Directors to form an audit task force on an ad-hoc basis to conduct thorough investigation and provide an audit report, in order to expand the depth of internal control audits for greater synergy and contribution.