Taiyen Company Internal Audit system
	1、The Purpose The internal audit was not just merely limited to the tradition of accuracy for financial information, precaution practicing fraud, instead was to evaluate the risks on the practicing business, and to ensure various risk management mechanisms were execute to validity, and offers suggestion of improving on business management. So the purpose for Taiyen to set up the internal audit was to examine the validity within the company also offers suggestion to ensure all systems can execute effectively, furthermore it is inspected with risk concerns, used the tactics of risk management, to improve and control every procedure, help the management level to reach the goal of the company. The internal audit is based on initiative and risk management to assess the audit: 1.From traditional audit the procedure of emphasize on flow control and follow examine which is「control-based auditing」, revolve to 「risk based auditing」. 2.From paying attention to internal audit, and negligent to reach company's goal, turn to confirm company inspect target, via the risk evaluation, propose effectiveness for managing organization risks. 3.The inspection and suggestion afterwards are extended to consulted and assisted for the advisor in advance.
	2、The internal audit organization Taiyen internal audit department is directly subordinate to the board of directors, the executive of internal audit was approved by the board of directors. (1 )、Internal audit organization chart The risks of general enterprises include「enterprises and operation procedure risk」and 「information technology and e-commerce risk」, audit department then according to risk management , divided audit work into two major sections of 「business audit」 and 「computer audit 」. (As the following picture) (2)、Internal audits’suitability The internal audits personnel should posses the of「cognitive」and「behavior」 skill. 1. The cognitive skill is divided into technical ability, analyzing and appraising, etc… 2. The behavior skill is divided into personal skill, interpersonal skill and cognizable skill, etc...
	3、The internal audits range (1).The audit range. Operating audit range includes: 1. Check the execution in each plan, to ensure achieving the goal. 2. Check the existing system, to ensure the following of the law. 3. Check the method to safeguard assets, to ensure the value and preserve the assets. 4. Check the use of resources, to ensure utilization. 5. Check the dependability and integrality of the financial affairs and operation information. The computer audit range includes: 1. Check design and execution of the operation controlled system. 2. Check the design and execution of the mechanism for information safety. 3. Check infrastructure dependability for information and operation efficiency. 4. Check the software management policy design and execution. (2).Audit target： Audit target includes: all unit personnel in company.
	4、The internal audit operation 1、The procedure of internal audit： 2、The internal audit operation Internal audit operation and process timing flow chart 1. Audit works includes audit planning, inspection of information and communication assessment, and result tracking afterwards. 2. The annual audit plan should base on risk evaluation; individual audit case should draw up audit procedure and work draft. 3. When on spot auditing concluded, base on audit result and fully communicate with unit executive, in case of necessity obtain the improvement plans and estimated target date, auditing personnel should also track improving action. 3、The internal audit operations: 1. Self checking assignment: In order to implement the company supervise mechanism, instantaneously reaction due to the changes of environment, to adjust internal control system design and execution, and to improve the internal audit checked for quality and efficiency, every year all units conduct self examination process, and after review work draft, providing department 「 internal control declaration 」 2.The routine internal audit: In order to guarantee the control of effective implementation within the system for the company, at the end of each year audit department, base on nine characteristics of large loop, accountant will audit the internal control, strengthen the auditing point, and the frequency of company's trade and operations, draft annual audits plan and consider in accordance with the characteristic of auditing the project, determine checking time for audit events. 3.The irregular internal audit: In order to fully understand the current operation situation of the audit unit, audit department should circulate each assignment’s importance, risk, frequency and numbers of operations to stipulate audit item, and present to manager for review. It’s content should mainly focus on「inside control system J and「 policy of internal audit implementation 」, also stipulate the audit points. 4.Special project audit In order to guarantee to control of effective implementation for the system inside the company, appointed audit goal and time by the general manager, audit personnel should work according to the time table, carry on all audit assignments. It’s content should mainly focus on「inside control system J and「 policy of internal audit implementation 」, also stipulate the audit points.