The Company has an internal audit unit under the Board of Directors, dedicated to internal auditing, which is staffed by a full-time internal audit officer according to the size of the Company, business conditions, management needs and other relevant laws and regulations. The appointment or removal of the internal audit officer must be approved by the Board of Directors and reported on the Internet information system for reference. Internal auditors should meet the statutory qualifications and continue their studies until they reach the required number of hours, with their names, age, academic credentials, work experience, years of service and training filed in the prescribed format on the Internet information system by the end of January each year for reference.
The internal auditors shall faithfully perform their duties in a detached, independent, objective and impartial manner and shall report regularly to the Audit Committee on their audit activities, while the internal audit officer shall attend and deliver a report to a board of directors meeting. Auditors shall carry out audits on a regular, irregular and ad hoc basis. Regular audits shall be carried out by the auditors based on the annual audit plan; irregular and ad hoc audits shall be performed under the instructions of the Company's top executive or his/her delegated officer. To conduct internal audits, audit items, timing, procedures and methods shall be developed. The auditors shall have access to all files in the performance of their duties, and the inspected unit may not refuse or conceal them. If the auditors require the assistance of any unit in the execution of their tasks, each unit shall be obliged to render such assistance. The audit department shall inspect and evaluate the implementation of the Company's internal control system according to the annual audit plan and prepare an audit report, which shall be concise, objective, constructive and timely. The auditors shall fully communicate with the audited units regarding the audit results, and shall disclose in the report any deficiencies or irregularities in the internal control system identified during the inspection, and shall present the audit report and audit tracking report to the Audit Committee of the Company by the end of the next month after the completion of the audit report pursuant to the "Regulations Governing the Establishment of Internal Control Systems by Public Companies." The auditing department shall supervise the units in the Company and its subsidiaries in regularly performing annual self-inspection of the effectiveness of the internal control system, and then review the self-inspection reports of each unit and subsidiary and make a statement on the internal control system in the prescribed format for publication on the website designated by the competent authority within three months after the end of each fiscal year, and for publication in the annual report.
The Company has established rules for the appointment, dismissal, evaluation, and salary and compensation management of internal auditors, which were submitted by the internal audit officer to the Chairman of the Company for approval, and the evaluation is conducted once a year, with the relevant rules and regulations subject to the Company's bylaws.
