The Auditing department is an independent unit that reports to the Board of Directors and under the Board of Directors, Board Audit Committee's guidance and supervision and in charge of internal audit.
The purpose of Internal Audit
Internal audit is to assist the Board of Directors and managers in inspecting and reviewing defects in the internal control systems as well as measuring operational effectiveness and efficiency, and make timely recommendations for improvements to promote operating performance.
Auditing department
One chief internal auditor who is passed by the Board of Directors, and qualified persons in an appropriate number as full-time internal auditors.
According to EMC's Corporate Governance Principals passed by the Board of Directors, appointment, dismissal, evaluation and review, salary and compensation of internal auditors shall be submitted by the chief auditor to the Board chairman for approval.
Internal audit operation
Internal auditing department shall formulate annual audit plans based on the results of the risk assessment and the same should be passed by the Boards of Directors.
The inspection result of audit items should be summarized as report and submitted to Board Audit Committee and the Board of Directors.
The audit findings should be followed up and a report should be submitted to independent directors for perusal on a quarterly basis.
Auditing department should adopt to changes in environment to review design of internal control systems and the self-inspection reports prepared by all departments and subsidiaries,to ensure the sustained operating effectiveness of internal control systems.