Internal audit is highly valued by the Company and has been established
as a separate unit, which is monitored and reviewed by the Audit Committee.
The Audit Committee has duties and responsibilities to assess the adequacy and efficiency of the Company’s internal control of the operations and activities in accordance with the annual internal audit plan, which has been approved by the Audit Committee. The Company’s internal audit comprises five different dimensions as follows:
1. Review and report the credibility and completeness of the Company’s financial information, as well as evaluate the performance;
2. Review the action plans against the Company’s goals and ensure the plans are effectively followed;
3. Review and report activities that affect the operations in connection with the following thematic areas:
- Policies, procedures, and approval authorization;
- Working manuals;
- Following up of work progress;
- Relevant regulations and governing laws;
- Safety, occupational health, and environment;
- Information and communication technology;
- Internal control
4. Review assets, goods, and materials as follows:
- The storage and existence of the permanent assets, equipment, tools, spare parts, etc;
- The receipt and disbursement of raw materials, goods in process and finished goods;
- The storage of raw materials, finished goods in the warehouse and tank farm
5. Ensure and assess the natural resources are of maximum benefit and effectively used.
The Office of Internal Audit shall provide regular audit reports to the Audit Committee and the Board of Directors as part of the Company’s goal to effective monitoring, risk management, and internal audit systems, and prepare other relevant reports as specified by the Securities and Exchange Commission for the Board of Directors’ approval. The internal audit shall be conducted in accordance with work ethics and professional standards in order to maintain the independence and quality of the audit. The audit report is to be submitted to the Audit Committee on a monthly basis, to further report to the Board of Directors. At the end of each year, the reports which shall be presented include those specified by the Securities and Exchange Commission and reports on the performance of the Audit Committee.
The Company has delegated responsibilities to the Audit Committee to review the evaluation of the internal control systems of the Company to ensure proper and adequate internal control measures are in place, and able to function efficiently. The Audit Committee shall submit the reports on such findings to the Board of Directors and the shareholders. Duties and responsibilities of the Audit Committee include ensuring the business operations of the Company are without conflicts of interests and reviewing of financial reports, related transactions, risk management, legal compliance, internal audit, and appointment of the external auditor.