I. Internal Audit Organization
1. The Company has a dedicated internal audit unit under the direct supervision of the Board of Directors and is overseen by the independent directors of the Audit Committee.
2. The head of internal audit (chief internal auditor) oversees the planning and execution of audit operations. In addition to reporting audits to each independent director monthly, the chief internal auditor also attends meetings of the Audit Committee and the Board of Directors to provide reports.
The internal audit unit shall have one chief internal auditor, who may be appointed and dismissed by the Board of Directors, and any objections or reservations of the independent directors shall be recorded in the minutes of the Board of Directors’ meetings. Within two days from the occurrence date, relevant appointment and dismissal information shall be submitted to the Financial Supervisory Commission for record via the approved online system, and the same shall apply to changes. Additionally, the audit unit shall employ several full-time audit personnel, selected from individuals with backgrounds in engineering, finance, management, etc., to facilitate internal audit operations. Qualified deputies shall also be appointed to execute audit tasks in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies”.
3. Audit personnel shall engage in continuous education and participate in internal audit training organized by institutions accredited by the Financial Supervisory Commission so as to enhance audit quality and capabilities.
4. The appointment, evaluation, and compensation of internal auditors shall be submitted by the chief internal auditor for approval by the Chairman of the Board.
5. The qualifications of the Internal Audit Office’s personnel include:
One individual holding an international internal auditor certification; one individual holding a Taiwan Certified Internal Auditor certification.
II. Audit Operations
1. Assist the Board of Directors and Company management in examining and reviewing deficiencies in internal control systems, measuring operational effectiveness and efficiency, reporting reliability, timeliness, transparency, compliance with relevant standards, and adherence to applicable laws and regulations. Provide timely improvement recommendations to ensure the continuous and effective implementation of internal control systems and serve as the basis for reviewing and amending internal control systems.
2. Take into account business characteristics, organizational scale, and potential risks, the audit unit shall formulate an annual audit plan, which must be approved by the Board of Directors. Based on the plan, the audit unit shall inspect the internal control systems of various departments and subsidiaries of the Company, and prepare audit reports including working notes and related information. For deficiencies and anomalies discovered during the inspections of internal control systems, in addition to addressing them in the audit report, the audit unit shall track and report on these matters at least quarterly until improvements are satisfactorily made. This approach ensures that relevant units have taken appropriate improvement measures in a timely manner, and also establishes important performance evaluation criteria for each unit.
3. Following the review of audit reports and follow-up tracking reports, the audit unit shall submit them to the independent directors of the Audit Committee for review no later than the end of the following month after the completion of audit items. In the event of identifying material violations or potential substantial harm to the Company, an immediate report shall be prepared and submitted for review, and the independent directors of the Audit Committee shall be notified.
4. Self-assessments
To implement the Company’s self-supervision mechanism, promptly respond to environmental changes, adjust the design and execution of internal control systems, and enhance audit quality and efficiency, each department and subsidiary of the Company conducts a self-assessment operation at least once a year. The audit unit reviews the self-assessment reports and examines the improvements made in response to internal control deficiencies and anomalies identified by the audit unit. These assessments serve as the primary basis for the Board of Directors and the President to evaluate the overall effectiveness of the internal control system and issue the internal control system statement.
5. Basis for Audit Operations
The Company follows the management regulations for internal control systems, internal audit systems, and the Guidelines for the Self-assessment of Internal Control Systems.
I. Internal Audit Organization
1. The Company has a dedicated internal audit unit under the direct supervision of the Board of Directors and is overseen by the independent directors of the Audit Committee.
2. The head of internal audit (chief internal auditor) oversees the planning and execution of audit operations. In addition to reporting audits to each independent director monthly, the chief internal auditor also attends meetings of the Audit Committee and the Board of Directors to provide reports.
The internal audit unit shall have one chief internal auditor, who may be appointed and dismissed by the Board of Directors, and any objections or reservations of the independent directors shall be recorded in the minutes of the Board of Directors’ meetings. Within two days from the occurrence date, relevant appointment and dismissal information shall be submitted to the Financial Supervisory Commission for record via the approved online system, and the same shall apply to changes. Additionally, the audit unit shall employ several full-time audit personnel, selected from individuals with backgrounds in engineering, finance, management, etc., to facilitate internal audit operations. Qualified deputies shall also be appointed to execute audit tasks in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies”.
3. Audit personnel shall engage in continuous education and participate in internal audit training organized by institutions accredited by the Financial Supervisory Commission so as to enhance audit quality and capabilities.
4. The appointment, evaluation, and compensation of internal auditors shall be submitted by the chief internal auditor for approval by the Chairman of the Board.
5. The qualifications of the Internal Audit Office’s personnel include:
One individual holding an international internal auditor certification; one individual holding a Taiwan Certified Internal Auditor certification.
II. Audit Operations
1. Assist the Board of Directors and Company management in examining and reviewing deficiencies in internal control systems, measuring operational effectiveness and efficiency, reporting reliability, timeliness, transparency, compliance with relevant standards, and adherence to applicable laws and regulations. Provide timely improvement recommendations to ensure the continuous and effective implementation of internal control systems and serve as the basis for reviewing and amending internal control systems.
2. Take into account business characteristics, organizational scale, and potential risks, the audit unit shall formulate an annual audit plan, which must be approved by the Board of Directors. Based on the plan, the audit unit shall inspect the internal control systems of various departments and subsidiaries of the Company, and prepare audit reports including working notes and related information. For deficiencies and anomalies discovered during the inspections of internal control systems, in addition to addressing them in the audit report, the audit unit shall track and report on these matters at least quarterly until improvements are satisfactorily made. This approach ensures that relevant units have taken appropriate improvement measures in a timely manner, and also establishes important performance evaluation criteria for each unit.
3. Following the review of audit reports and follow-up tracking reports, the audit unit shall submit them to the independent directors of the Audit Committee for review no later than the end of the following month after the completion of audit items. In the event of identifying material violations or potential substantial harm to the Company, an immediate report shall be prepared and submitted for review, and the independent directors of the Audit Committee shall be notified.
4. Self-assessments
To implement the Company’s self-supervision mechanism, promptly respond to environmental changes, adjust the design and execution of internal control systems, and enhance audit quality and efficiency, each department and subsidiary of the Company conducts a self-assessment operation at least once a year. The audit unit reviews the self-assessment reports and examines the improvements made in response to internal control deficiencies and anomalies identified by the audit unit. These assessments serve as the primary basis for the Board of Directors and the President to evaluate the overall effectiveness of the internal control system and issue the internal control system statement.
5. Basis for Audit Operations
The Company follows the management regulations for internal control systems, internal audit systems, and the Guidelines for the Self-assessment of Internal Control Systems.