One. Organization

  1. The Company has established an independent internal audit unit that is subordinate to the Board of Directors and consists of an adequate number of dedicated auditors according to the Company’s size, business conditions, management requirements, and other relevant laws and regulations. The position agents are also designated to perform the auditing in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies”.
  2. Based on Article 3 of the Company’s “Corporate Governance Best Practice Principles”, the appointment and dismissal, evaluation, and remuneration of the Company’s internal auditors shall be reported to the Board of Directors or submitted by the head of audit to the Chairman of the Board for approval.
  3. The auditors shall continue to study and participate in internal audit training courses organized by the institution designated by the Financial Supervisory Commission to improve the quality of audits and expertise.

Two. Operation of Audit

  1. According to the Company’s “Guidelines for Internal Audit Implementation” and relevant laws and regulations, the Audit Office is responsible for planning and implementing the annual audit plan approved by the Board of Directors and issues audit reports and follow-up reports, which shall be regularly submitted to the Audit Committee for review.
  2. Audit and evaluate the correctness, reliability, efficiency and validity of the Company’s operating records and internal management control, and then provide improvement suggestions to ensure the safety of the Company’s operations, reduce risks and abuses, and enable the effective implementation of internal control; and evaluate and audit the management system and internal audit planning.
  3. The head of audit shall report to the Audit Committee and the Board of Directors on the audit works on a regular basis.
  4. The Audit Office shall supervise each unit and subsidiary to implement the self-assessment of the rationality and effectiveness of the internal control system, and review their self-assessment reports.