Corporate Governance

The purpose of internal auditing is to assist the board of directors and management in examining and reviewing deficiencies in the internal control system and measuring the effectiveness and efficiency of operations, while providing timely improvement suggestions to ensure the continuous and effective implementation of the internal control system and serving as a basis for reviewing and revising the internal control system. Internal auditing is conducted based on the annual audit plan approved by the board of directors, checking the company's internal operations and supervising and managing subsidiaries; in addition to reporting at regular board meetings, it also reports to the audit committee quarterly. The implementation of internal auditing includes investigating and evaluating the internal control system to measure the compliance level of current policies and procedures and their impact on various operational activities. The audit scope includes defined audit items, timing, procedures (methods), legal regulations, and forms used. Internal auditing is an independent unit directly reporting to the board of directors. The appointment and dismissal of the head of internal auditing must be reviewed by the audit committee and submitted for approval by the board of directors, and reported for record-keeping according to the regulations of the Financial Supervisory Commission via the internet information system by the 10th of the month following the board's approval. The appointment, dismissal, salary, compensation, evaluation, and rewards and punishments of internal auditors are subject to the company's personnel management regulations and approved by the chairman.