Internal audit

Purpose of Internal Audit

The role of internal audit is to help BOD and executive management in making sure that organisation’s risk management, governance and internal control processes are operating effectively. And assessing and making recommendations on the effectiveness of the existing controls, informed BOD and executive management accountable decision making with regard to ethics, compliance, risk, economy and efficiency. Provide timely recommendations in order to make sure internal controls are effective or improvements to better internal controls.

Internal Audit Organization

As per Article 11 of Regulations Governing Establishment of Internal Control Systems by Public Companies, A public company shall establish an internal audit unit under the board of directors. Appointment or dismissal of the chief internal auditor shall be subject to approval by the audit committee and be submitted to the board of directors for a resolution.

Operation of Internal Audit

URE has established an audit committee, it’s members are Independent Directors. Chief Internal Audit, should submit audit report to Audit Committee every month, and present internal audit report in quarterly Audit Committee meetings, follow up on the matters and prepare follow-up reports at least on a quarterly basis until such time as correction is made, to ensure that the relevant departments have taken appropriate corrective measures in a timely manner. Chief Internal Audit and Audit Committee have established excellent communication.

Internal Audit draw up annual audit plan base on Articles 7, 8, 9, 13, 22 of the Regulations Governing Establishment of Internal Control Systems by Public Companies and other relevant regulations and risk control relevance. And the plan will be executed within the year, to assess company’s internal control design is reasonable, comprehensive and effective.

As per regulations, this department completes following via Internet-based information system within statutory period
★annual audit plans by end of December
★Information on Chief Internal Audit and Staffs by end of January
★Execution of previous year's annual audit plan by end of February
★Internal Control System Statements by end of March
★The status of correction of defects and irregularities of internal control systems by end of May