Internal auditing organization

1. The Company's internal audit function is to assist the Board of Directors and Management to inspect and review defects in the internal control systems and measure whether the operation of internal control system works effectively and provide appropriate suggestions for revision which can ensure the on-going performance of effective internal control and serve as the basis of internal control system revisions.

2. The Company’s Internal Audit Office reports directly to the Board of Directors, and there are some full-time employees dedicated to Internal Audit, including the Chief Auditor and staff auditors.

3. Pursuant to our " Company's Corporate Governance Rules", the appointment and removal of the Chief Auditor shall be signed by the Board of Director to the Audit Committee for review and further submitted to the Board for a resolution. The appointment, dismissal, evaluation, salary and remuneration of the internal auditors shall be submitted to the Board or signed by the Chief Auditor to the Board of Director for approval.

The operation of the internal audit

1. The internal auditors of the company must be detached, independent, objective, and impartial, in faithfully performing their duties, and in addition to reporting their audit operations to each indepedent director on a regular basis, the internal audit officer shall also attend and deliver a report to the audit committee  and the board of directors.
2. The audit shall consist of periodic and project audit. Periodic audits shall be prepared in accordance with the results of the risk assessment before the beginning of the year and shall be carried out after the approval by the audit committee and the board of directors meeting. Depending on the actual needs, the project audit shall be carried out from time to time.
3. The Internal Audit Office of the Company reviewed the self-inspection reports prepared by all departments, and be subject to approval by the audit committee and the board of directors meeting. To serve as the primary basis for the chairman and president to evaluate the overall efficacy of all internal control systems and to produce Internal Control System Statements.