Corporate Governance

 Corporate Governance Information

Internal Audit

BizLink’s Internal Audit function is an independent unit that reports directly to the Board of Directors.

The charter of Internal Audit is to review the internal controls in the company’s processes and to report on those controls with respect to the adequacy, effectiveness, and efficiency of their design as well as their actual functioning on a day-to-day basis. All parts of the company and its subsidiaries are open for review by Internal Audit.

Internal Audit works according to an annual plan, which needs to be approved by the Board of Directors. In addition, special audits or reviews are conducted as needed. The combination of the regular audits and the special projects provide management with feedback on the functioning of the internal control system; it gives management an additional channel to learn about existing or possible future weaknesses in the system and addresses them in a timely manner.

The company supplements the review activities by Internal Audit with documented self-assessments by the departments and operational units. Internal Audit sees to it that these activities do take place, and reviews the submissions to ensure the quality of the process; it consolidates the results of the self-assessments for the CEO and the Board of Directors.

There are three full-time employees dedicated to Internal Audit, including one VP and two staffs.

Committees

The Audit Committee assists the Board in fulfilling its oversight of the quality and integrity of the accounting, auditing, reporting, and financial control practices of the Company. The Audit Committee is responsible to review the Company’s: financial reports; auditing and accounting policies and procedures; internal control systems; material asset or derivatives transactions; material lending funds, endorsements or guarantees; offering or issuance of any equity-type securities; legal compliance; related-party transactions and potential conflicts of interests involving executive officers and directors; Ombudsman reports; fraud investigation reports; corporate risk management; hiring or dismissal of an attesting CPA, or the compensation given thereto; and appointment or discharge of financial, accounting, or internal auditing officers.

Under R.O.C. law, the membership of the Audit Committee shall consist of all independent Directors. BizLink’s Audit Committee satisfies this statutory requirement. The Audit Committee annually conducts self-evaluation to assess the Committee’s performance and identify areas for further attention. BizLink’s Audit Committee is empowered by its Charter to conduct any study or investigation it deems appropriate to fulfill its responsibilities. It has direct access to BizLink’s internal auditors, the Company’s independent auditors, and all employees of the Company. The Committee is authorized to retain and oversee special legal, accounting, or other consultants as it deems appropriate to fulfill its mandate. Please consult BizLink’s Annual Report for the relevant year for the number of meetings convened and each member’s attendance rate.

Board Committee Membership

The Communication Between the Independent Directors and Internal Audit Supervisors

Regular discussions on the audit report are conducted by the Company’s internal auditor and audit committee, and the internal audit report is made at the meeting of audit committee on a quarterly basis. The independent auditors are also required to immediately communicate to the Audit Committee any material matters that they have discovered. During 2017, the Company’s independent auditors did not report any irregularities.

The communication channels between the Audit Committee and the Internal Audit manager functioned well. The Company’s independent auditors have presented the findings of their review or audits when required on the Company’s financial results and other matters required by laws and regulations to Audit Committee.