investor relations
投資人關係
internal audit
Internal Audit
Internal Audit
The Internal Audit department is an independent unit directly under the Board of Directors. It operates with an independent and impartial spirit, following a comprehensive internal audit system to execute audit tasks. The department regularly reports to the Board of Directors, the chairman, and the Audit Committee. Its purpose is to examine and evaluate the effectiveness of internal control systems, assess the efficiency and effectiveness of operations, and ensure the reliability, timeliness, and transparency of reporting, as well as compliance with relevant laws and regulations. The Internal Audit department provides timely recommendations for improvement to ensure the continuous and effective implementation of various systems. The Internal Audit unit prepares an annual audit plan each year based on the results of a risk assessment, which is then approved by the Board of Directors. The audit work is primarily conducted according to this approved plan, with special audits carried out as needed. The audit unit conducts performance evaluations and operational assessments in an objective and impartial manner. Findings and conclusions from these audits are compiled into audit reports, which include recommendations for improvements to management. The department also continuously follows up on these recommendations to ensure that necessary improvements are made. HDRE regularly conducts self-assessments of its internal control systems, with the Internal Audit department reviewing the self-assessment reports submitted by various units to ensure quality execution. The results of these assessments are compiled and reported to the Board of Directors and management, serving as a basis for evaluating the overall effectiveness of HDRE’s internal control system. According to the Company’s “Corporate Governance Best Practice Principles” and “Delegation of Authority Table,” the appointment, performance evaluation, and remuneration of internal audit personnel must be approved by the Chairman, while the appointment or dismissal of the Chief Audit Officer must be submitted to the Board of Directors for approval.
Communication Between Independent Directors, the Chief Audit Executive, and CPAs
- After submitting audit reports and follow-up reports to the chairman, the Chief Audit Officer sends them via email to each independent director for review on a monthly basis. Additionally, at least once each quarter, the Chief Audit Officer meets in person with independent directors to individually discuss internal control and audit-related matters and to address any questions raised by the independent directors.
- Every six months, the CPA reports directly to each independent director in person on the results of the Company’s audits and other required communication matters according to relevant laws and regulations. Independent directors can raise any questions they may have during these meetings and receive timely responses.
Summary of Communication Between Independent Directors and Auditors
| Meeting Date | Key Audit Communications | Implementation Results |
|---|---|---|
| 2022/03/28 Audit Committee |
1.Report on the execution of audit activities for Q4 2021 2.Assessment of the effectiveness of the design and implementation of the internal control system for 2021 |
1.After prior one-on-one communication with the Audit Committee, the independent directors had no comments on the audit execution report. 2.With the Audit Committee’s concurrence, the “Internal Control System Statement” was submitted to the Board in March for approval. |
| 2022/06/29 Audit Committee |
Report on the execution of audit activities for Q1 2022 | After prior one-on-one communication with the Audit Committee, the independent directors had no comments on the audit execution report. |
| 2022/09/08 Audit Committee |
Report on the execution of audit activities for Q2 2022 | After prior one-on-one communication with the Audit Committee, the independent directors had no comments on the audit execution report. |
| 2022/11/14 Audit Committee |
Report on the execution of audit activities for Q3 2022 | After prior one-on-one communication with the Audit Committee, the independent directors had no comments on the audit execution report. |
Summary of Communication Between Independent Directors and the Chief Audit Officer
| Meeting Date | Key Discussions with Auditors | Implementation Results |
|---|---|---|
| 2022/03/28 Audit Committee |
Parent Company Only and Consolidated Financial Statements for 2021) | After prior one-on-one communication with the Audit Committee, the external auditors presented matters communicated at the completion stage of the audit, including key audit matters, materiality, related party transactions, significant accounting estimates, and a summary of audit results and significant financial information, and responded to questions from the independent directors. The financial statements were approved by the Audit Committee and submitted to the Board for resolution, timely announcement, and filing with the competent authority.) |
| 2022/06/29 Audit Committee |
Consolidated Financial Statements for Q1 2022 | After prior one-on-one communication with the Audit Committee, the external auditors presented matters communicated at the completion stage of the interim financial review, including governance matters identified during the review, a summary of the interim financial review and significant financial information, and updates on material regulatory and legal developments, and responded to questions from the independent directors. The financial statements were approved by the Audit Committee and submitted to the Board for resolution, timely announcement, and filing with the competent authority. |
| 2022/09/08 Audit Committee |
Consolidated Financial Statements for Q2 2022 | After prior one-on-one communication with the Audit Committee, the external auditors presented matters communicated at the completion stage of the interim financial review, including governance matters identified during the review, a summary of the interim financial review and significant financial information, and updates on material regulatory and legal developments, and responded to questions from the independent directors. The financial statements were approved by the Audit Committee and submitted to the Board for resolution, timely announcement, and filing with the competent authority. |
| 2022/11/14 Audit Committee |
Consolidated Financial Statements for Q3 2022 | After prior one-on-one communication with the Audit Committee, the external auditors presented matters communicated at the completion stage of the interim financial review, including governance matters identified during the review, a summary of the interim financial review and significant financial information, and updates on material regulatory and legal developments, and responded to questions from the independent directors. The financial statements were approved by the Audit Committee and submitted to the Board for resolution, timely announcement, and filing with the competent authority. |