Corporate Governance
Internal Audit Organization and Operation
The company establishes the Auditing Office in accordance with its scope, business, operational needs, and relevant regulations. Internal audit at GameSparcs is handled by an independent unit that reports directly to the board of directors.
Internal Audit Organization
The Purpose of Internal Audit：
The company carries out internal audits to assist the board of directors and mangers in inspecting and reviewing the performance of the internal control systems as well as measuring operational effectiveness and efficiency, and to make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.
The Operations of Internal Audit：
Internal audit’s unit establishes internal control systems in accordance with “Regulations Governing Establishment of Internal Control Systems by Public Companies”. Audits are conducted mainly by following board-approved audit plans, which are devised according to the results of the risk assessment.
The company establishes three lines of defense in internal control system according to relevant regulations. The audit office shall conduct self-assessments to its subsidiaries at least once each year, to have its internal audit departments review the self-assessment reports prepared by all departments and subsidiaries, and submit the self-assessment reports, together with the reports on the correction of defects and irregularities of internal control systems discovered by its internal audit departments, to serve as the primary basis for the board of directors and general manager to evaluate the overall efficacy of all internal control systems.
Appointment, Evaluation, and Compensation of Internal Audit Personnel
The company’s internal audit unit is staffed with dedicated audit personnel. The appointment and dismissal of the internal audit supervisor require the approval of the Audit Committee and must be submitted for approval by the Board of Directors. The appointment, evaluation, and compensation of internal audit personnel are conducted in accordance with the company's relevant personnel management regulations. Performance evaluations are conducted annually. The aforementioned appointments, evaluations, and compensation are reported by the Human Resources and/or Audit Supervisor to the Chairman of the Board for approval.
The three lines of defense model provides guidance for internal audit.
| Organizer | Model | Role & Function |
|---|---|---|
| First line All departments | All departments shall execute self-examination and internal control procedures on a day-to-day basis. | Design a complete internal control procedure to identify the risks and to manage them. |
| Second line Management and Legal affairs | The second line supports to optimize the company’s procedures and to ensure risk and controls are effectively managed. | Establishes various risk management and compliance functions to help build and/or monitor the first line-of-defense controls. |
| Third line Internal audit | Internal auditors accomplish their objectives by bringing a systematic approach to evaluating and improving the effectiveness of risk management, control, and governance processes to the board. | Check and assess whether the internal control system works effectively and to provide timely suggestions for improvements so as to reasonably ensure the ongoing and effective implementation of the internal control system. |
Annual Internal Audit Plan
