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a-1)
Internal Audit Department Duties
The internal audit unit or department shall assess and supervise the internal control
system and verifies the extent to which the company and its employees comply with
applicable regulations and instructions and the Company’s policies and procedures. The
internal audit unit or department shall consist of at least one internal auditor who shall be
recommended by the Audit Committee and reporting to it. In composition and operation
of the internal audit unit or department, the following shall be considered:
1)
The staff shall be competence, independent and appropriate training, and shall not be
charged with any other work other than internal audit and internal control;
2)
The unit or department shall report to and be associated with the Audit Committee;
3)
The compensations of the Director of the Audit Unit or Department shall be
determined on the proposal of the Audit Committee in accordance with the
Company's policies; and
4)
The Unit or Department shall have access to the information and document without
restriction.
a-2)
Internal Audit Plan
The internal audit unit or department shall operate pursuant to a comprehensive audit
plan approved by the audit committee. Such plan shall be updated annually. Key
activities and operations, including the activities of risk management and compliance
departments, shall be reviewed at least annually.
a-3)
Internal Audit Reporting:
1.
The internal audit unit or department shall prepare and submit a written report on its
activities at least quarterly to the Board and the audit committee. Such report shall
include an assessment of the Company's internal control system and the final opinion
and recommendations of the unit or department. Such report shall also specify the
procedures taken by each department for addressing the findings and
recommendations from the previous audit, and any remarks thereon, particularly
failures to promptly address such findings and recommendations and the reasons for
such failure;
2.
The internal audit unit or department shall prepare a general written report to be
submitted to the Board and the audit committee on the audit activities it carried during
the fiscal year compared to the approved plan. Such report shall explain the reasons
for any deviation from the plan, if any, during the quarter following the end of the
relevant financial year;
3.
The Board shall specify the scope of the report of the internal audit unit or department,
based on recommendations from the audit committee and the internal audit unit or
department. The report shall include the following in particular:
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procedures for monitoring and overseeing the financial affairs, investments and
risk management;
-
assessing the development of risk factors threatening the Company and the
existing systems, in order to confront radical or unexpected changes in the
Exchange;
