Internal Audit

The Company’s internal audit system is established in accordance with the “Regulations Governing the Establishment of Internal Control Systems by Public Companies” promulgated by the competent authority, and is formulated in line with operational and management needs to properly regulate various operations and business processes.
The purpose of internal audit is to ensure the continuous and effective operation of the internal control systems of the Company and its subsidiaries, and to assess the Company's risk oversight of its subsidiaries. The audit unit conducts independent internal audits and provides audit findings and improvement recommendations to the Board of Directors and management as a basis for improving and reviewing the internal control system.
3. To assist the Board of Directors and management in establishing systematic and preventive control mechanisms within operational processes, and to periodically review opportunities to streamline and improve such processes, thereby enhancing overall organizational efficiency and optimization.

The Company has established a dedicated internal audit unit under the Board of Directors, which is supervised by the Audit Committee.
The qualifications, code of conduct, and continuing education of audit personnel shall comply with relevant laws and regulations, as well as the Company’s “Internal Audit Implementation Rules.”
The audit unit shall be headed by one chief auditor. The appointment or dismissal of the chief auditor must be approved by the Audit Committee and submitted to the Board of Directors for resolution.
The assignment, deployment, and supervision of audit personnel shall be managed by the chief auditor of the audit unit.
The internal audit unit shall maintain full independence and provide management with complete transparency on issues at the company level.

The internal audit function includes participation in and supervision of the internal control system, auditing the appropriateness and effectiveness of internal control systems within the Company and its subsidiaries, and assessing the extent and quality of internal control operations. The responsibilities are as follows:

Assist the Company and its subsidiaries in establishing effective internal control systems; participate in the formulation of business procedures and operating regulations, and assess the adequacy of internal control processes.
Conduct audits of business operations, finance, risk management, and regulatory compliance of the Company and key investee subsidiaries, and provide recommendations for improvements to internal control execution.
Establish the content and procedures for internal control self-assessment, periodically review the appropriateness of self-assessment processes conducted by all departments and subsidiaries, consolidate their self-assessment results, and report to the Board of Directors as a basis for issuing the Internal Control System Statement.
Continuously track, review, and supervise the improvement of deficiencies identified in the inspections conducted by competent authorities or external auditors, as well as issues disclosed in the Internal Control System Statement.
Ensure the professional development and ongoing training of audit personnel.
Complete all internal audit reporting requirements within the timeframes specified by the competent authority.
In addition to audit duties, auditors should proactively act as coordinators among audited units, provide advisory services, introduce best practices, and help establish preventive system controls.
The scope, items, schedule, methods, and procedures of audit operations shall comply with relevant laws and the Company’s “Internal Audit Implementation Rules” to ensure the quality of audit activities. This includes:
- Risk-based audit planning
- Use of sampling methods and enhancement of computer-assisted audit techniques
- Optimization and feasibility of improvement recommendations
- Reasonableness of improvement completion timelines