Internal Audit Management | Premier Manufacturer of High-Quality Power Inductors | ABC ATEC

Internal Audit Management | We offer customization services for inductors, transformers, connector thermal solutions, and mechanical parts.

Internal Audit Management

Based on its risk assessment, ABC-AETC establishes an annual audit plan, which is approved by the board of directors for implementation. The internal audit unit submits monthly internal audit reports to independent directors for review and approval and presents financial reports to the Audit Committee and the Board of Directors and communicates with the directors and the CPAs during said meetings. In 2022, each department conducted its own internal control self-assessments on various aspects of its operations, including the update of business results, efficiency, target accomplishment, target accomplishment, reliability of reported financial information, and regulatory compliance, and found that the design and execution of internal control system to be effective at providing reasonable assurance for the abovementioned goals.


1.Purpose of Internal Audits
The purpose of establishing internal audit within the Company is to evaluate the effectiveness and compliance of the current control policies and procedures of the internal control system. It also assists the Board of Directors and management in assessing and reviewing deficiencies in the internal control system and measuring the effectiveness and efficiency of operations. Timely improvement recommendations are provided to ensure the continuous and effective implementation of the internal control system and to serve as a basis for reviewing and amending the internal control system.

2.Audit Scope
The scope of internal audit operations of the Company includes the evaluation and review of the effectiveness of various internal control systems designed and implemented by various units within the company and its subsidiaries.

3.Audit Subjects
The scope of internal audit operations of the company includes all respective responsibilities of various units within the Company and all responsibilities of subsidiaries without dedicated internal audit personnel. If a subsidiary has dedicated internal audit personnel, their audit reports are reviewed, and the improvement of deficiencies and abnormal issues in the internal control system is tracked.

4.Audit Operational Procedures
The Company's internal audit department prepares an audit plan for the next year by the end of each year based on relevant regulations and risk assessment results. The plan is submitted for approval by the Audit Committee and the Board of Directors before execution.

5.Types of Audit Operations
Routine Audit Operations: Various audit operations are conducted in accordance with the annual audit plan approved by the Board of Directors.
Regular Internal Audits: Specific audit items are audited based on instructions from the Company's Board of Directors, management, or specific projects or business needs.
Self-assessment Operations: All units within the company and subsidiaries are encouraged to conduct self-assessment of internal control systems at least once a year, and their self-assessment reports are subsequently reviewed.

6.Reporting Process of Audit Reports
In addition to thoroughly communicating the audit results of the annual audit items with the audited units, internal auditors should disclose deficiencies and abnormal issues in the internal control system that were discovered during the audit process in the audit report.
After the audit report and follow-up report are reviewed, they are delivered to independent directors for review at the end of the month following the completion of the audit item.
If internal auditors discover material violations or potential significant harm to the company, they should report to all members of the Board of Directors in addition to preparing an immediate report for review. After approval by the Chairman of the Board, the audit report is sent to relevant units for improvement if necessary.

7.Execution Status of Deficiency Improvement Tracking
Internal auditors shall prepare follow-up reports at least quarterly for deficiencies and abnormal issues discovered during inspections until appropriate improvement measures have been undertaken to ensure that relevant units have taken timely and appropriate improvement measures.
8.Information Announcement Reporting Operations
Internal auditors should, within the time frame specified in the "Regulations Governing Establishment of Internal Control Systems by Public Companies," complete various reporting operations in the required format through the online information system.

Interaction between independent directors and internal audit unit
The internal audit unit will deliver the audit reports and work papers issued by the monthly audit to the independent directors according to the progress. If the independent directors have questions or instructions after reviewing them, they will contact the internal audit unit by phone or email.
In addition to regularly reporting to the board of directors on the implementation of internal audits, the head of internal audit also communicates and discusses with independent directors in person, by phone, or via email, as appropriate, and communicates with independent directors at least once a year when no management and business management units are present. Convene a symposium on matters such as internal audit and internal control system implementation.

The communication situation between independent directors and internal audit manager is as follows:

Meeting DateRelated motionsOpinions of independent directorsHandling the opinions of independent directors
2023/3/9The first internal audit business report in 2023Independent directors have no opinionIndependent directors have no opinion
2023/5/10The second internal audit business report in 2023Independent directors have no opinionIndependent directors have no opinion
2023/8/9The third internal audit business report in 2023Independent directors have no opinionIndependent directors have no opinion
2023/11/10The Fourth Internal Audit Business Report in 2023Independent directors have no opinionIndependent directors have no opinion

Internal Audit Management | Premier Manufacturer of High-Quality Power Inductors | ABC ATEC

ABC ATEC, established in 1979 in Yangmei, Taiwan, is a premier manufacturer of high-quality inductors. Our extensive product range includes chokes, filters, chip inductors, power inductors, common chokes, and RF inductors. With more than four decades of experience in the industry, we have developed and possess key production technologies and numerous patents, positioning us at the forefront of innovation and quality in inductor manufacturing.

With 45 years of expertise in professional inductor design and manufacturing, we offer tailored services for inductors, transformers, connector, thermal solutions, and mechanical partts. Our solutions cater to various sectors including automotive, industry, telecommunications, medical and consumer electronics applications. We are proud to have achieved IATF16949 Quality Certification, ensuring the highest standards in our products. Additionally, we continuously innovate, holding key production technologies and patents to enhance our offerings.

ABC ATEC has been offering customers efficient power inductors since 1979. With both advanced technology and 45 years of experience, ABC ATEC always ensures to meet each customer's demands.