Internal Audit
Purpose
The main function of internal audit is to report and update BOD & Audit Committee on the status and operation of internal control within the management. They also respond immediately to the management for their understanding of existing or potential risk in order to ensure that the internal control procedures are able to effectively implement and timely revised.
Organization and Staffing of Internal Audit Department
The internal audit department is directly under the BOD with the configuration of full-time staff which are responsible for the internal audit of the Company and its subsidiaries. Any appointment or dismissal of chief internal auditor shall be subject to approval by the audit committee and be submitted to th BOD for a resolution in accordance with government laws and regulations.
Internal Audit's Operation
1. The major task of internal auditor is to execute the annual audit plan which approved by BOD, checking on the status and operation of internal control and combine relevant information into audit reports, in addition depends on necessary to conduct audit project. They also provide the education and training on the concepts of internal control as well as the consultation on the proposed review of internal control and management approach.
2. The formulation of annual audit plan is submitted for approval of BOD at the end of the year based on the Applicable Public Company Internal Control Procedures Rules and monthly audit project on evaluation of operations risk.
3. Besides regular reporting to the Audit Committee and BOD, it is compulsory that they report to Chairman monthly on the internal audit status and to send the internal audit reports to all Independent Directors. If any irregularities found, internal auditor should track with relevant department quarterly for the improvement measures and prepare audit tracking report presented to Chairman and then to all Independent Directors.
4. Another important task of internal auditor is to promote annual internal control self -assessment. The internal auditor must review and consolidate the internal control self-assessment report from each department, together with the irregularities audit tracking report and submitted to General Manager and Chairman for their evaluation on the effectiveness and statement of internal control procedures.