Communication between Independent Directors, Internal Audit Officer and CPAs
There is a direct channel of communication between independent directors, internal auditors, and CPAs. Independent directors, internal auditors, and CPAs have good communication. The internal auditor officer reports the annual audit plan and its implementation to the quarterly board meeting and interacts with independent directors; every month, the internal auditor officer submits the written audit report to the independent directors and communicates with the independent directors if necessary. CPAs attend the board meeting and shareholders’ meeting without voting rights and discuss the audit of financial statements or issues regarding finance, taxation, or internal control with independent directors. Communication between the financial officer, the accounting officer, the internal audit officer, and CPAs is recorded and the implementation of resolutions is followed up.
The audit meeting was held on December 27, 2016. In the meeting, independent directors, supervisors, and internal auditors discussed the common defects seen in the past two years and the internal control system. The discussion was recorded and the implementation of resolutions was followed up.
Recent communication with CPAs：
|◆||Attended the board meeting and the shareholders’ meeting without voting rights.|
|◆||On August 1, 2019, independent accountants met with the Board of Directors to discuss tax-related issues.|
|◆||Discussed the amendment to the Procedures for the Acquisition and Disposal of Assets with the internal audit officer. Discussed the Q219 financial statements with the independent accountants.|
|◆||In late May 2019, the Company exchanged opinions with independent directors.|
|◆||Discussed the amendment to the Procedures for Loaning of Funds and the Procedures for Making of Endorsements/Guarantees by law with the internal audit officer; discussed the Q119 financial statements with the independent accountants.|
|◆||Relevant issues of annual auditing for next fiscal year had been discussed with independent directors of the Company in late December, 2018.|
|◆||Relevant issues of mid-term auditing had been discussed between the Chairman and the Accountant at the meeting in mid-October, 2018.|
|◆||Discussed the tax issues with independent directors and related officers on January 24, 2018.|
|◆||Interacted with independent directors and supervisors in the middle of May, 2017.|
|◆||Discussed the audit with the chairman on January 16, 2017.|
|◆||Interacted with independent directors and supervisors in the middle of June, 2016.|
|◆||Discussed the tax issues with the chairman and related officers on February 19, 2016.|