Organization of internal audit

The Company’s internal audit unit is subordinate to the Board of Directors and in charge of internal audit matters. The internal audit unit is set up with a full-time internal auditor and a deputy in place for the internal auditor. Such a full-time internal auditor is the internal audit officer. The appointment or dismissal of an internal audit officer shall be approved by the Audit Committee and submitted to the Board of Directors for a resolution, and its performance assessment and remuneration shall be reported to the chairman. The qualifications of an internal auditor meet the qualifications required by Financial Supervisory Commission, R.O.C., and the continuous training reaches the prescribed hours. The internal audit officer reports the audit business to each independent director on a regular basis and attends the Board meeting.


Operation of internal audit

According to “Regulations Governing Establishment of Internal Control Systems by Public Companies” codified by Financial Supervisory Commission, R.O.C., the Company established the internal control system and internal audit system as the guides to internal auditing. The internal audit unit formulates annual audit plans on the basis of the aforementioned regulations and implements after approval of the Board of Directors. The internal audit unit assesses the Company’s internal control systems and provides some advice to ensure that the Company’s internal control systems can be continuously and effectively implemented. Furthermore, the internal audit unit demands that all units within the Company assess the effectiveness of internal control systems annually by themselves. Then, the internal audit unit reviews the self-assessment reports of all units and submits the self-assessment reports along with the findings of the lack of internal control and improvement of abnormal events, to serve as the primary basis for the Board of Directors and general manager to evaluate the effectiveness of the overall internal control system and to issue an internal control system statement. The statement may be referred to the annual report, prospectus and Market Observation Post System.

The Company should disclose data such as the information of internal auditors, the audit plan of the following year, the execution of the annual audit plan from the previous year and internal control deficiencies discovered in the previous year and the improvements on exceptions according to the format on the website designated by securities regulators.