Hon Chuan's Board of Directors has established an Internal Audit Office, which formulates internal control systems and detailed implementation guidelines based on the "Guidelines for Handling Internal Control Systems of Publicly Issued Companies." The Internal Audit Office annually drafts an audit plan and projects based on risk assessment results, proposes improvement suggestions, tracks their effectiveness, and consolidates findings of internal control deficiencies and anomalies in audit reports.
The Audit Director regularly reports audit results to the Board of Directors. Additionally, they address requests and recommendations from independent directors and the Audit Committee, as well as the Board of Directors regarding internal audits. They continue to monitor and process these requests, ensuring completion within specified deadlines and reporting outcomes accordingly.
Implementation Status of Preventing Insider Trading
The Internal Audit Office routinely supervises all units within the group and its subsidiaries to conduct internal control self-assessments. Audit personnel design self-assessment checklists based on key points of internal control systems, allowing units to conduct preliminary selfinspections to verify compliance with procedures across production, sales, personnel, and financial aspects. This approach strengthens the second and third lines of defense in internal control and enhances the
efficiency and effectiveness of audit checks.
There are 61 audit items in 2023, with 100% compliance rate.
The Annual Internal Audit Procedure