Corporate Governance

Internal Audit

Purpose and Organization of Internal Audit

VIS' Internal Audit aims to assist its Board of Directors and management team to inspect and review deficiencies in the internal control systems, and perform audits to achieve effective and efficient operations. Also, Internal Audit provides timely suggestions for improvement, ensuring the sustainability and effective execution of internal controls.

VIS' Internal Audit is an independent unit that reports directly to the Board of Directors. The team consists of 4 full-time employees, including one Chief Internal Auditor and three staff members. According to VIS' "Corporate Governance Practice Principles", the appointment, dismissal, performance evaluation and compensation of the internal auditors and chief internal auditor shall be approved by the Audit Committee and the decision shall be submitted to the Board of Directors for resolution. Appointment, dismissal, performance evaluation of the Chief Internal Auditor shall be approved by the Audit Committee, the compensation shall be approved by the Compensation Committee, both decisions shall be submitted to the Board of Directors for resolution. Appointment, dismissal, performance evaluation and compensation of internal auditors shall be submitted by the Chief Auditor to the Chairman for approval. The performance shall be evaluated at least once a year.

Operation of Internal Audit

The internal auditors shall be detached, independent, objective, and impartial, in faithfully performing their duties, and shall exercise due professional care, and in addition to reporting their audit operations to Board of Directors on a regular basis, the internal audit officer shall also attend and deliver a report to Chairman and Audit Committee quarterly or as needed basis.

A public company's internal audit unit shall formulate annual audit plans based on the results of the risk assessment and approved by Board of Directors. The audit findings of internal control weakness and exceptions shall be followed up and reported to ensure that the corrective action plans were timely and fully executed.

In addition, the Internal Audit reviews the control self-assessment reports of all units and subsidiaries, together with the deficiencies of internal control discovered by the auditing unit and improvements of abnormal events. Based on the self-assessment report, along with the improvement status of the findings in the past audits, the Board of Directors and President will judge the design and operating effectiveness of VIS' internal control system and then sign the Internal Control System Statement for VIS.