Organization

• The internal audit unit is an independent unit under the board of directors
• The internal audit unit consists of one chief internal auditor and one deputy

Operations

• Internal audits shall cover all operational activities of the company and its subsidiaries, and comply with the laws and regulations governing the industry to which the company belongs, and audit all operating cycles and computerized information processing system
• Internal audit shall implement the annual audit plans based on identified risks and required projects. The objective of the internal audit is to find out the defects in the internal control systems, provide recommendations for improvements, and make the board of directors and managers aware of the existed defects or potential risks
• The internal auditors shall present the audit reports to the Chairman ,independent directors and audit committees after assessments, and shall also attend a board of directors meeting to report the audit operations and results for corporate governance
• The internal auditors shall first see that all departments and subsidiaries conduct self-assessments at least once each year, establish the self-inspection mechanisms, review the self-inspection reports prepared by all departments and subsidiaries, and consolidate the assessments for board of directors
• The correction of defects and irregularities of internal control systems are the primary basis for the board of directions and the president to evaluate the overall efficacy of all internal control systems and to produce Internal Control System Statements