The Practice of Audit Work

The Auditors Office formulates annual audit plans based on the results of the risk assessment. The annual audit plans include as audit items, at least, the control activities for major financial or business activities, such as for acquiring or disposing of assets, engaging in derivatives transactions, extending loans to others, granting endorsements or guarantees for others, supervision and management of subsidiaries, information flow security inspection, and major transaction cycles such as the sale and receipt cycle and purchase and payment cycle.
Internal auditors exercise the audit work of operation systems according to the annual audit plans to ensure that the established systems are efficient and are being met, information is reliable, operations are effective and timely. Internal auditors should report the result of their audit work and make recommendations.
The Auditors Office prepares the audit plans of next year and reports it to FSC through the designated internets by the end of fiscal year. The results of audit plans are reported to FSC in the same way within two months from the end of each fiscal year in the prescribed format.
The status of correction of defects and irregularities of internal control systems are reported to FSC through the designated internets within five months from the end of each fiscal year in the prescribed format.
The Auditors Office supervises all internal departments and subsidiaries to conduct self-assessment at least once a year and review the self-assessment reports prepared by them. According to the results of the reviews and the correcting effects of audit findings performed by auditees, The Auditors Office prepares a summary report to serve as the primary basis for the board of directors and general manager to evaluate the overall efficacy of all internal control systems and to produce Internal Control System Statements. The Internal Control System Statement is publicly announced and reported on the websites designated by the FSC and published in the company's annual report, public offering and issuance prospectus.