Internal Audit

Organization of the audit office

The audit office is an independent internal unit of WNC; it is under the direct control of the Board of Directors and is composed of one manager and two specialists. In addition to reporting to the Board of Directors during Board meetings, the Audit Office head briefs the Chairman and the Audit Committee as needed.

Scope of audit work

WNC establishes the internal control systems based on applicable laws and acts; the audit office prescribes charters for internal audits based on the internal control systems and executes and reviews their effectiveness and abidance to the control systems and procedures. All areas of WNC and its subsidiaries are subject to review in the internal-audit charters.

The practices of audit work

Audits are conducted based on audit schemes passed by the Board of Directors which are formulated according to recognized risks. Other project audits will be performed when necessary. General audits and project audits are conducted to provide the operation status and existing shortcomings or potential risks in time for internal control performed by management-level personnel. Audit reports and tracking reports are released after the internal audit schemes are executed and shall be submitted to the Audit Committee for review at fixed intervals.

Self-assessment on internal control

Internal audits cover self-assessments performed by each unit and subsidiary. Such activities shall include verifying whether relevant operations are performed and related documents are reviewed to ensure performance quality. Self-assessment results shall be integrated and reported to the Chairman and President as a basis for judging the effectiveness of the internal control and issuing declarations of effective control systems.