Internal Audit

The purposes of internal audit are to assist the Board of Directors and managers in reviewing the effectiveness of the Company’s internal controls, operational effectiveness, and efficiency, and then to provide recommendations. This guarantees the continuous functioning of the internal control system and generates recommendations as to how to improve said system.

The internal auditor reviews the company’s internal tasks and monitors its subsidiaries in accordance with annual plans, which need to be approved by the Board of Directors. Besides informing the Board of Directors during its ordinary meetings, it briefs the Board Audit Committee on a quarterly.

Internal auditing includes investigation and evaluation of internal control standards, as well as assessment of existing policies and procedures, and their effects on operational activities.

The internal auditor is independent and under the board of directors. Any appointment or discharge of the internal audit manager shall be approved by the Board of Directors after being reviewed by the audit committee and be reported to the SFB for recordation via the Internet-based information system by the 10th day of the month next following.