Description of the operation of the internal audit organization

The internal audit unit has a full-time audit supervisor who is directly subordinate to the board of directors. The appointment and dismissal of the internal auditors of the company is approved by the audit committee and the board of directors, and the evaluation and remuneration are signed and reported to the chairman in accordance with the company's "appointment management method" and "salary and performance appraisal management method".

In addition to reporting at the regular meeting of the board of directors, the company's internal audit also reports to the chairman of the board and the chief executive officer on a regular or irregular basis.

The company establishes an internal control system in accordance with laws and regulations. The internal audit system has internal audit implementation rules to implement and measure the effectiveness and compliance of the current control system and procedures; its scope covers all the company's operations and subsidiaries.

 

The audit work is mainly carried out by the audit plan approved by the board of directors, which is formulated according to the needs of the management, internal control risks and the relevant letters and orders of the competent authorities. Depending on the audit results of the previous year, appropriate adjustments will be made to conduct project audits or reviews. The execution of routine and ad hoc audits provides management with information on the functioning of internal control functions and provides management with an understanding of existing deficiencies or potential risks.

Internal audits review the self-inspection performed by each unit and subsidiary, and report the results to the CEO and the board of directors as a basis for evaluating the effectiveness of the overall internal control system and issuing an internal control system statement.

 

Communication between independent directors, supervisors and audit supervisors and accountants

1. Communication between independent directors, supervisors, internal audit supervisors and accountants

     ●Independent directors, supervisors and accountants hold regular meetings at least once a year, and the accountants report on the audit results of the financial statements of the previous year and other communication matters required by relevant laws and regulations.

       And communicate whether there are major events or whether the amendment of the law affects the accounting situation.

     ●Independent directors, supervisors and internal audit supervisors meet at least once a quarter to report on the company's internal audit implementation and internal control operations.

 

2. Summary of previous communication between independent directors, supervisors and accountants

An excerpt of the main communication matters since 2015 is as follows:

 

Date	Key Communication Items
105/03/18	Audit report on 2015 consolidated and independent financial reports
106/03/24	Audit report on 2016 consolidated and independent financial reports
107/03/23	Audit report on 2017 consolidated and independent financial reports
108/03/20	Audit report on 2018 consolidated and independent financial reports
109/03/19	Audit report on 2019 consolidated and independent financial reports
110/03/11	Audit report on 2020 consolidated and independent financial reports

 

 

3. Summary of previous independent instructions, supervisors and internal audit work
The following table is an excerpt of the main activities since 2015:

 

Date	Key Communication Items
105/03/18	1.2016 Q1 Audit Report 2. 2015 Annual Internal Audit Report
105/05/12	2016 Q2 Audit Report
105/08/05	2016 Q3 Audit Report
105/11/04	2016 Q4 Audit Report
106/03/24	1.2017 Q1 Audit Report 2. 2016 Annual Internal Audit Report
106/05/10	2017 Q2 Audit Report
106/08/10	2017 Q3 Audit Report
106/11/08	2017 Q4 Audit Report
107/01/12	2017 Q4 Audit Report
107/03/23	1.2018 Q1 Audit Report 2. 2017 Annual Internal Audit Report
107/05/11	2018 Q2 Audit Report
107/08/13	Change of internal auditor
107/11/08	2018 Q3 Audit Report
108/03/20	1.2018 Q4 Audit Report & 2019 Q1 Audit Report 2. 2018 Annual Internal Audit Report
108/05/08 & 108/06/21	2019 Q2 Audit Report
108/08/07	2019 July Audit Report
108/11/12	2019 August and September Audit Report
109/03/19	1. 2019 October to December audit report 2. 2019 Annual Internal Audit Report
109/05/06	2020 Q1 Audit Report
109/08/04	2020 Q2 Audit Report
109/11/03	2020 Q3 Audit Report
110/03/11	1.2020 Q4 Audit Report 2. 2020 Annual Internal Audit Report
110/04/21	2021 Q1 Audit Report
110/05/04	2021 April Audit Report
110/06/25	2021 May Audit Report
110/08/03	2021 June Audit Report
110/09/14	2021 July Audit Report
110/10/12	2021 August Audit Report
110/11/02	2021 September Audit Report
110/12/23	2021 October Audit Report