Internal Audit Performance

The internal audit of the company is an independent unit, directly under the board of directors, and the appointment and removal of the head of internal audit is approved by the board of directors; the appointment and removal of internal auditors, assessment, and remuneration are signed by the audit head in accordance with the general employee process and approved by Chairman. The internal auditors uphold the spirit of detachment and independence, with an objective and fair standpoint, truly perform their duties, and regularly report their audit business to the board of directors. The internal audit reviews the internal control of the company's operating procedures, and reports whether the design and routine practice of such controls are appropriate and their effectiveness and efficiency. The scope includes all the company's operations and its subsidiaries. General audits and project execution provide the operating status of the internal control functions of the management, and provide the management with additional channels to solve existing or potential control weaknesses in a timely manner.

The audit head of the company, in accordance with the "Public Offering Company Establishing Internal Control System Processing Standards", will deliver the audit report after the audit to independent directors for review by the end of the month following the completion of the audit project. When independent directors participate in the board of directors, they communicate with the head of internal audit in the audit committee meeting before the board meeting, and also communicates with the internal audit head from time to time by email, telephone or other means. In addition, when accountants participate in the shareholders’ meeting or the board of directors or the audit committee, independent directors will communicate with accountants, financial supervisor, and accounting supervisor on the company’s financial reports, financial business status, and new international accounting principles. Independent directors can also use E-mail, phone or other methods to ask accountants, financial supervisor, and accounting supervisor.