GUC's internal audit function is an independent organization that reports directly to the Board of Directors. The charter of Internal Audit is to mainly examine and evaluate the effectiveness of the internal control system, to measure the efficiency and effectiveness of the operation, the reliability of the financial statements and the compliance with the relevant laws and regulations. As well, it supervises improvements to ensure the control system is implemented effectively and sustainably.
There are two full time employees who dedicated for internal audit function. The performance assessment, salary and compensation of the audit controller are reviewed and approved by the Compensation Committee and the Board of Directors. Appointment, dismissal, performance review, salary and compensation of internal auditor are submitted by the audit controller to the Chairman for approval.
The majority of audit work is executed according to risk and an annual plan approved by the Board of Directors. Special audits or reviews are conducted as needed to timely discover possible internal control deficiencies, supervise improvement, issue audit reports, and regularly report to the Audit Committee and the Board of Directors. Internal Audit assists the Board and management to achieve goals by assessing and improving effectiveness of risk management, the control and processes.
In addition, Internal Audit also supervises all functions and regions to perform self- assessments to establish a self-supervision mechanism of the company. Taking the evaluation results as the basis, the Chairman and the president issue an Internal Control Statement.