德淵企業

Tex Year Products

GOVERNANCE

Internal Audit

The audit office of our company is directly subject to the board of directors and the auditors are all full-time staff.
  • The targets of auditing include our company and its subsidiaries while the content of auditing covers all financial operations, business operations and management functions, which are subdivided into 10 major cyclical auditing periods according to the existing laws and regulations.
  • The main auditing methods consist of routine auditing according to the annual audit plan. If the situation requires it, auditing of a project may be carried out to reveal potential defects in the internal control system, for which an improvement suggestion and subsequent followup shall be fully executed. The case shall then be reported to the supervisor and independent director in the month following completion of the audit.
  • We regularly report the status and results of the audit plan in the board of directors meeting so as to realize a spirit of corporate governance.
  • We supervise all company units and subsidiaries in formulating and abiding by the internal control system, performing self-assessments, establishing autonomous corporate supervision mechanisms, and providing self-assessment results. This serves as an important reference for the board of directors and general manager to issue an internal control system declaration form.

Communication between independent directors/supervisors and the internal audit manager/accountant.

1. During a board of directors meeting, the audit manager shall make a report while the supervisor and independent director shall discuss the issues of concern and contact each other through phone call or E-mail occasionally.

Date of the MeetingCommunication with the Internal Audit Manager
March 27, 2020
  1. Review the audit defects and improvement measures from 2019.
  2. Review the implementation status of the audit plan from January to February 2020.
  3. Review the “internal control self-assessment result” and "internal control system declaration form" from 2019.
  4. Review the amendments to the "Board of Directors Meeting Rules".
  5. Review the amendments to the "Shareholders Meeting Rules".
May 14, 2020
  • Review the audit defects and improvement measures from January 2020.
  • Review the implementation status of the audit plan from March to April 2020.
  • Review the amount of endorsement and guarantee providing to son companies.
  • Review on the lending of capital for Tex Year affiliates.
August 13, 2019
  • Review the audit defects and improvement measures from Feberuary to April 2019.
  • Review the implementation status of the audit plan from May to July 2019.
  • Review the amount of endorsement and guarantee providing to son companies.
  • Review on the lending of capital for Tex Year affiliates.
November 13, 2019
  • Review the audit defects and improvement measures from May to July 2019.
  • Review the implementation status of the audit plan from August to October 2019.
  • Review the audit plan of 2020.
  • Review the amendments for the standard of the internal control. 
  • Review the Certified Public Accountants Independence.
  • Review the amount of endorsement and guarantee providing to son companies.
Note: The aforementioned items have passed review from the supervisor and independent director without any objections.

2. Hold an independent director and supervisor meeting to discuss corporate governance and financial issues with a public certified accountant.

Date of the MeetingCommunication Between Supervisor/Independent Director and Public Certified Accountant
March 27, 2020
  • Discuss the financial statements and internal control inspection condition report of 2019.
  • Regulatory alteration report.
Note: The aforementioned items have passed review from the supervisor and independent director without any objections.