主要課題への対応
The report on the processing of and improvements by the Company as a result of the former employees’ misconduct case filed by the Hsinchu District Prosecutor’s Office in December 2021 |
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The Company's Handling of the Matter:
- The Company received a report from an individual in September 2020 that employees were involved in abnormal transactions which caused the company losses. Upon discovering the employees’ misconduct after preliminary investigation, the Company immediately conducted a thorough internal investigation and the Company also notified and cooperated fully with the Investigation Bureau and the Prosecutor’s Office in the investigation of the matter. After the disciplinary committee of the Company determined that the employment of two employees should be terminated, the Company dismissed two employees involved in the case in November 2020.
- The Company reported the former employees’ misconduct to the Audit Committee on Nov 17, 2020 and Nov 25, 2020.
- Jan 26, 2021: The Company reported the former employees’ misconduct to the Audit Committee and invited auditors in attendance to provide comments about the impact on the statements relating to internal control and internal audit system in the Company’s current financial statement resulting from this incident. After further evaluation, the auditors assessed that the impact of this matter on the financial statement did not exceed the determined materiality threshold. In addition, there were no significant deficiencies found in the Company’s internal control and internal audit operations. To monitor and control high-risk behaviors, the Audit Committee has agreed to appoint forensic accountants to assist in establishing a continuous auditing dashboard.
- July 28, 2021: The Company reported sales analysis - yield rate and shipment of downgrade products (I) explaining the relevance between yields and the analysis of yields and shipments to the Audit Committee.
- Dec 20, 2021: The Company reported sales analysis - yield rate and shipment of downgrade products (II) to the Audit Committee and updated the status of the Company’s cooperation with the Investigation Bureau and the Prosecutor’s Office in the investigation of the former employees’ misconduct. The Audit Committee suggested the Company review its shipment systems and communicate to the Audit Committee any material matters discovered.
- Dec 29, 2021: The Company reported the improvements made to the Company’s policies and procedures as a result of the former employees’ misconduct to the Audit Committee. In addition, the Company also made further improvements as a result of the Audit Committee’s suggestions.
Improvements:
1. The Company plans to enhance the control of the inventory categorization and the authorization procedures. The Company’s proposed improvements and status of implementations are as follows:
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2. The Audit Committee’s suggestions:
- The Company cooperates with the Investigation Bureau and the Prosecutor’s Office in the investigation and recovery to protect shareholders’ interest.
- The Company reports to the Audit Committee any material matters discovered.
- Enhancing corporate governance:
Note: Status as of February 2022. Information will continue to be updated from time to time. |