Internal audit organization and operation

Organization & Operations

The internal audit department of Canghe Co., Ltd. is an independent unit directly under the board of directors. In addition to reporting at the regular board meetings, it also reports to the chairman and independent directors every month.

The Internal Audit Management Regulations and Internal Audit Implementation Rules clearly stipulate that internal audits shall review the internal controls of the company's operating procedures and report on the appropriateness of the design and routine operations of such controls and their effectiveness and efficiency; the scope of internal audits covers all operations of the company and its Subsidiary.

Audit work is mainly carried out according to the audit plan approved by the Board of Directors. The audit plan is formulated based on the identified risks, and special audits or reviews are carried out as needed. The above general audit and project execution provide management with the operation status of internal control functions, and provide management with other channels to understand existing or potential deficiencies in a timely manner.

Internal audit reviews the self-assessment performed by each unit, including checking whether the operation is carried out and reviewing the documents to ensure the quality of execution. It also summarizes the self-assessment results and reports to the Chairman and the Board of Directors.

The company's internal audit unit is staffed with full-time auditors, including a supervisor and his/her subordinate auditors, totaling 2 people. In accordance with Article 3 of the Corporate Governance Code of Practice, the appointment, dismissal, evaluation, and salary and remuneration of internal auditors shall be signed by the audit supervisor and approved by the chairman.