Internal Audit

Flexium's Internal Audit function is an independent unit that reports directly to the Board of Directors. Internal Audit reports to the Board during ordinary BOD meetings, and also reports to the Chairman and the CEO on a monthly or on specific demands.

The charter of Internal Audit, set up in Flexium, is to review the internal controls in the company's processes and to report on those controls with respect to the adequacy,effectiveness, and efficiency of their design as well as their actual functioning on day-to-day basis. The job scope of internal audit covers whole Company's operation and its subsidiaries'.

The internal audit work is executed according to an annual plan, which needs to be approved by the Board of Directors. Such plan will take into account risks that have been identified. Specific audit projects or reviews are conducted as needed. The combination of the regular audits and the specific audit projects provides management with feedback on the functioning of the internal control system; it gives management an additional channel to learn about existing or possible future weaknesses in the system, and addresses them in a timely manner.

The Internal Audit will review the self-assessment conducted by the departments and operational units in Company. Such reviews include that these activities do take place,and also ensure the quality of the process; the audit results together with the self-assessment reports are reported to the Board of Directors.

There are full time employees dedicated to Internal Audit function. Appointment, dismissal, performance evaluation and compensation of internal auditors should be approved by chairperson according to the "Compensation Administration Rules" and "Performance Evaluation Rules".