Internal Audit

The purpose of the company’s audit system is to assist the board of directors and the managers in examining and reviewing the flaw of the internal control system and measuring the efficiency and effectiveness of operations and providing timely improvements to ensure that the internal control system is implemented continuously and effectively and to serve as a basis to review and amend the internal control system.

Internal audit is an independent unit directly under the Board of Directors. The current internal audit (including executive) are set for two persons who qualify for the applicable provisions. The appointments and removals of auditing supervisors shall be approved by the board of directors. The audit work is mainly implemented in line with the audit plan adopted by the Board of Directors and, if necessary, the project audit is implemented to timely discover the likely flaw of the internal control system and propose improvement proposals. For the audit report, the audit executive attends the board of directors’ meetings to report the implementation status and results.

The auditing scope of the auditing office includes the overall financial, business and operations of the company and assesses the implementation status of the internal control system in accordance with the law. The auditing office also urges all units to carry out annual self-inspection, implement the self-supervision mechanism of the company and review the results of self-inspection and with the audit report serves as the basis for the internal control statement issued by the board of directors of the company.