Corporate Governance

Internal Control and Internal Audit

CSCC’s internal control system has been established by the Board of Directors in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies promulgated by the Financial Supervisory Commission. The Audit Office, which has been set up to be directly responsible to the Board of Directors, is tasked with implementing annual internal audit plans approved by the Board of Directors. The audit report prepared by the Audit Office is first submitted to the Board of Directors before it is sent to the independent directors for review. Meanwhile, the Chief Auditor personally reports various audit operations to the independent directors after each Audit Committee meeting, and also sits in on the Board of Directors to present reports on audit operations.

In 2023, a total of 58 audit reports were submitted while 16 recommendations for improvement were proposed, including 5 recommendations for the Administration Department, 2 recommendations for the Commercial Department, 8 recommendations for the Manufacturing Department, and 1 recommendation for the Finance Department. As these deficiencies only involved violations of operating procedures with no cases of fraud found, the units under investigation have taken the appropriate improvement measures to address them and are continuously following up on related improvements.