Internal Audit Office assists Board of Directors (BOD) and top management to independently, objectively assess completeness, validity and implementation of Handa Group internal control system.
Internal Audit Office submits improvement proposals to ensure that internal control system proceed continuously. In accordance with major assignments from the Board of Directors (BOD), Internal Audit Office conducts relevant investigations, assessments or consultations to assist Board of Directors (BOD) and top management in fulfilling their responsibilities.

Audit Office is subordinated to the Board of Directors (BOD) and appoints an Audit Director to manage the Company’s internal audit operations. The appointment and dismissal of the Audit Director shall be approved by Board of Directors.

1. Annual audit of headquarters: Internal auditors shall frame annual audit proposals in accordance with risk assessments and relevant regulations. Audit proposals shall be approved by BOD prior to implementation. The annual audit includes but is not limited to operational audits and compliance with laws.

2. Special project audit: In accordance with BOD and top management’s operations and requests, irregular special project audits shall be executed.

3. Annual self-assessment of internal control system: Internal Audit Office annually coordinates the self-assessment of internal control, which allows executors to periodically evaluate the rationality, execution and effectiveness of all operational control items. Through the Internal Audit Office’s review of self-assessment of internal control reports, the evaluated results are submitted to the BOD and top management.

4. Subsidiary audit: In accordance with the annual audit plan or BOD’s request, Internal Audit Office conducts periodic or irregular audit to evaluate and assure the achievement of business objective, the reliability of financial reporting and the adequacy of internal control system. Internal Audit Office assists the Company in providing reasonable assurance regarding subsidiary performance enhancement, compliance with applicable laws and regulations, and the effectiveness and efficiency of operations.

5. Consulting service: Internal Audit Office provides advice on improving operational effectiveness and internal control system consulting services in order to enhance the effectiveness and efficiency of business operations.

For the above duties, Internal Audit Office shall submit reports and working papers including evaluations of internal control systems and business operations. In order to determine the appropriateness of current regulations and control procedures, the implementation of internal control, and rationality of advantages for management and operational units, Internal Audit Office shall provide adequate improvement proposals.
The auditors shall uphold detached independence, objective fair stance, truth-seeking spirit and modest, honest, diligent, agile, brave attitude to perform duties. The auditors shall ensure that the internal control system is implemented continuously effectively, and assist management to fulfill obligations.