1. The Company has set up an Audit Office under the Board of Directors, and has appointed a full-time Internal Audit Supervisor to assist the Board of Directors and managers in examining and reviewing the deficiency of internal control system, evaluating the effectiveness and efficiency of operations, and providing timely improvement suggestions to ensure the internal control system can be continuously and effectively implemented and used as a basis for review and revision of the internal control system.
2. At the end of each year, the Audit Office selects the scope of the following year's audit based on the risk assessment mechanism, in order to examine the Company's internal control system by attaching working sheets and related materials to prepare an audit report.
3. In addition to compiling the audit reports on the internal control system deficiencies and abnormal events discovered during the audit, the internal audit personnel shall also make a list of follow-up items to ensure that the concerned units take appropriate improvement measures in a timely manner. In addition, the audit report shall be delivered to each Independent Director for his/her to review before the end of the following month after it is completed.
4. All units and subsidiaries of the Company shall be urged to examine the effectiveness of their internal control systems on a regular basis each year, and then the internal audit unit shall review the subsidiary’s self-examination report, to assess whether the design and implementation of internal control are effective.
