Communication Method
- PharmaEngine's finance manager, internal audit manager and certified accountant physically attends the board meetings so the independent directors can communicate with any one of them at any time. Independent directors can also provide suggestions at the board meeting and the suggestions are recorded in the meeting minutes.
- Independent directors and internal audit manager hold at least one meeting per year to fully discuss over and give suggestions on our internal control system and our internal and external audit topics and keep a written record.
- When the internal audit manager completes monthly audit report, the report will be handed to the members of the Audit Committee (independent directors) before the end of the following month for review. The result of the internal audit report is reported to the Audit Committee and the Board of Directors periodically. The Audit Committee reviews our implementation of internal control and audit and results from self-inspection. The Audit Committee also regularly reviews the financial reports and provide audit reports.
- Internal audit manager complies with regulations and attend the Audit Committee meeting to report implementation of the internal audit tasks. The internal audit manager needs to report to the Audit Committee on matters such as the implementation of internal audit tasks, audit personnel training, and major inspection issues and improvements both internally and externally.
- If the Audit Committee members have questions or assigned tasks after reading the audit report, they will contact the internal audit manager via email or telephone or any other appropriate methods.
- The Audit Office should track the implementation progress of the improvement of internal control deficiencies and abnormal matters in the audit report monthly and prepare tracking reports on a quarterly basis and submit them to each Audit Committee member.
- The accountant should report to the independent directors at least once per year on our finances, domestic and international subsidiaries’ finances, the overall operation, and the implementation of internal control inspections. The accountant should fully communicate with the independent directors alone whether there are any major adjusting items or legal amendments that affect the accounting procedure. The accountant should report the review or the results of the review of the financial statements for the quarter at each quarterly Audit Committee meeting, as well as communicate matters required by relevant laws and regulations.
- PharmaEngine's internal audit manager and accountant and Audit Committee members (independent directors) can understand our operations and audit matter through the regular audit report presented in the Audit Committee meetings, the Board of Directors meetings and by the Audit Office. Independent directors can conduct efficient communication with the internal audit manager and the accountant via various channels such as the telephone, fax, and email.