Internal Audit | INVESTORS | United Renewable Energy Co.,Ltd.

Purpose of Internal Audit

The function of internal audit is to assist the Board of Directors and management in conducting periodic and ad-hoc audits of various operational processes. This ensures a thorough understanding of the implementation of the internal control system, as well as its soundness, adequacy, and effectiveness. Internal audit provides analysis, evaluation, and recommendation reports to help achieve effective control, quality improvement, enhanced efficiency, and reduced operational risks at a reasonable cost. It also assists the Board of Directors and managers in reviewing deficiencies in internal control and assessing the effectiveness and efficiency of operations, while providing timely improvement suggestions to ensure the continuous and effective implementation of the internal control system and to serve as the basis for its review and enhancement.

Internal Audit Organization

In accordance with Article 11 of the “Regulations Governing Establishment of Internal Control Systems by Public Companies” promulgated by the Financial Supervisory Commission (FSC), the Company has established an Internal Audit unit under the Board of Directors. The appointment and dismissal of the Chief Internal Auditor shall be approved by the Audit Committee and submitted to the Board of Directors for resolution. The Company shall report such changes via the FSC-designated online reporting system within two days after the Board’s approval.
The appointment, performance evaluation, and compensation of internal audit personnel are submitted by the Chief Internal Auditor to the Chairman for approval.

Operation of Internal Audit

The Company has established an Audit Committee composed entirely of independent directors. The Chief Internal Auditor submits monthly audit reports to the Audit Committee members for review and presents internal audit reports during each quarterly Audit Committee meeting. Each audit finding is followed up until improvement is completed, with follow-up reports prepared at least quarterly to ensure that relevant departments take timely and appropriate corrective actions. Communication between the Audit Committee members and the Chief Internal Auditor is effective.

The Internal Audit unit prepares an annual audit plan based on Articles 7, 8, 9, 13, and 22 of the “Regulations Governing Establishment of Internal Control Systems by Public Companies,” other relevant regulations, and risk control considerations. The audit plan is executed throughout the year to evaluate whether the design of the Company’s internal control system is sound and reasonable, and whether each department effectively implements the controls.


In accordance with regulatory requirements, the department completes online filings within the statutory deadlines for the following items:
★ Submission of the “Annual Audit Plan” for the following year by the end of December.
★ Submission of “Information on the Chief Internal Auditor and Internal Audit Personnel” by the end of January each year.
★ Submission of the “Implementation Status of the Annual Audit Plan” for the previous year by the end of February.
★ Submission of the “Internal Control System Statement” for the previous year by the end of March.
★ Submission of the “Improvements to Deficiencies and Irregularities in the Internal Control System” for the previous year by the end of May.