Purpose of internal audit

The purpose of the Company’s internal audit is to support the Board of Directors and management in assessing any deficiencies in the internal control system, evaluating operational effectiveness and efficiency, and providing recommendations for improvement. This ensures the continuous and effective implementation of internal controls and serves as a basis for reviewing and refining these systems to promote the Company’s sound operations.

Internal audit organization

The Company’s audit office reports directly to the Board of Directors.
• There shall be one audit supervisor, whose appointment or removal must be approved by the Audit Committee and submitted to the Board of Directors for resolution. Additionally, a deputy audit representative should be provided.
• The department shall allocate an adequate number of qualified full-time internal auditors based on the Company’s scale, business needs, management requirements, and relevant laws and regulations.
• Per Article 3(4) of the Company’s Code of Corporate Governance, the appointment, removal, evaluation, and remuneration of internal auditors must be submitted to the Board of Directors or signed by the audit supervisor for the Chairman’s approval.

Internal Audit Operations

• l Internal auditors should assist the Board of Directors and management in identifying deficiencies within the internal control system, assessing operational effectiveness and efficiency, and providing timely recommendations for improvements. This ensures the ongoing effective implementation of internal controls and serves as a foundation for reviewing and revising the system as needed.
• An annual audit plan is developed based on risk assessment results and the requirements set forth by relevant authorities. The plan, along with any amendments, should be submitted to the Board of Directors for approval.
• Ad-hoc audits are conducted as directed by the Company’s top executive or their authorized representative.
• Audit reports and follow-up reports are submitted to the independent directors for review.
• The auditor also presents reports on internal audit operations during Board meetings and provides updates to the Audit Committee on a quarterly basis, or as necessary.
• Statement of the internal control system must be publicly disclosed on the FSC’s designated website within three months after the end of each financial year and are to be included in the Company’s annual report.

Annual Training Status