Internal Audit Structure

The Company’s Internal Audit Office is an independent unit that reports directly to the Board of Directors and is staffed with one full-time internal auditor. The internal auditor holds a certification for passing the Certified Internal Auditor (CIA) examination.
The appointment and dismissal of the head of the internal audit function are subject to the approval of the Audit Committee and subsequent resolution by the Board of Directors, and shall be reported for recordation through the Market Observation Post System within two (2) days from the date of occurrence.
The Internal Audit Office reviews the internal controls of the Company’s operating procedures and reports on the adequacy of the design, routine implementation, effectiveness, and efficiency of such controls. The scope of internal audit covers all operations of the Company.
Internal audit activities are primarily conducted in accordance with the annual audit plan approved by the Board of Directors. The audit plan is developed based on identified risks. In addition, special audits are conducted as needed to timely identify potential deficiencies in the internal control system and to provide recommendations for improvement. Upon completion of each audit, audit reports are submitted to the members of the Audit Committee. The head of internal audit regularly reports the execution status and results to the Audit Committee and the Board of Directors to reinforce the principles of sound corporate governance.
In addition, the Internal Audit Office supervises the implementation of annual self-inspections by each department to strengthen the Company’s self-monitoring mechanism, and reviews the results of such self-inspections. Together with the audit reports, these results serve as the basis for the Board of Directors in issuing the Company’s internal control statement.

Communication between the Head of Internal Audit, External Auditors, and Independent Directors:

• In addition to distributing audit reports to all independent directors via email on a monthly basis, the head of the internal audit function also reports and communicates audit results and recommendations to the independent directors at meetings of the Audit Committee.
• In accordance with Statement of Auditing Standards No. 260, Communication with Those Charged with Governance, and the directive issued by the Securities and Futures Bureau on March 11, 2004 (Ref. No. Tai-Cai-Zheng-Liu-0930105373), the external auditors, during both the planning and completion stages, consolidate and report governance-related matters arising from the audit or review of the Company’s financial reports to the independent directors at Audit Committee meetings on a quarterly basis.
• The Company convenes Audit Committee meetings at least once every quarter. A summary of communications among the independent directors, the head of internal audit, and the external auditors at the Audit Committee meetings held in 2024 is provided below: