Internal Audit

Purpose of Internal Audit

The design, implementation and internal audit of the Company's internal control system are handled in accordance with the Standards for the Establishment of Internal Control System by Public Companies and relevant laws and regulations.

Organization of Internal Audit

The internal audit of the Company is directly subordinate to the Board of Directors, and in accordance with the provisions of the Company's scale, business situation, management needs and other relevant laws and regulations, an audit supervisor and an appropriate number of full-time auditors are appointed. The appointment and dismissal of the Head of Internal Audit shall be approved by the Audit Committee and submitted to the Board of Directors for resolution.

Operation of internal audit

The Company has established a self-assessment operation method for the internal control system, and each unit and each subsidiary is required to conduct a self-assessment at least once a year, which serves as the main basis for the Board of Directors and the General Manager to evaluate the effectiveness of the overall internal control system and issue a statement on the internal control system. The auditors shall truthfully disclose the deficiencies and anomalies of the internal control system found in the internal audit operation, the internal control system statement, the self-assessment and the audit of the accountant's project, and follow up the improvement measures of the relevant units after the report is presented. After the audit report and follow-up report are presented, they will be submitted to the independent directors for inspection before the end of the following month. If the internal auditor discovers a material violation or the company is at risk of material damage, he or she shall immediately make a report and notify the board of directors and independent directors.