The organization and operation of the internal audit

Internal Audit Organization

• The Company’s Internal Audit Office is an independent unit reporting directly to the Board of Directors and is staffed with appropriate full-time internal auditors. The auditors meet the qualification requirements stipulated by the Financial Supervisory Commission and are responsible for examining and evaluating the Company’s internal control system in order to promote operational performance.
• The appointment and dismissal of the Chief Internal Auditor are subject to the approval of the Audit Committee and the Board of Directors. The appointment, evaluation, and compensation of internal auditors shall be submitted to the Board of Directors for approval, or approved by the Chairman upon recommendation by the Chief Internal Auditor. Information including the names, ages, educational backgrounds, work experience, years of service, and training of internal auditors shall be reported to the Financial Supervisory Commission via the Internet information reporting system in the format specified by the Commission before the end of January each year for recordation.

• Responsibilities of the Chief Internal Auditor
1. Planning of internal audit manpower.
2. Management of internal audit activities.
3. Providing recommendations for improvements on audit findings.
4. Communication and coordination with various departments during audit activities.
5. Regularly reporting audit operations to the independent directors and attending Board meetings to present reports.
6. Handling other assignments directed by supervisors.

• Responsibilities of Internal Auditors
1. Conducting audit work in accordance with the audit plan, preparing audit reports with supporting documents for submission, and tracking the status of corrective actions.
2. Other assigned audit tasks.