The Company has established an Internal Audit unit that reports directly to the Board of Directors. In accordance with the Company’s scale, business operations, management needs, and relevant legal requirements, a suitable number of qualified full-time internal audit personnel are appointed.

The purpose of the Internal Audit unit is to assist the Board of Directors and management in examining and reviewing deficiencies in internal control systems, evaluating operational performance, and providing recommendations for improvement. This ensures that internal controls are effectively implemented and serves as a basis for reviewing and modifying internal control systems.

Basic information of internal audit personnel (including acting personnel) and details of training courses attended shall be reported to the competent authority for record before the end of January each year, in accordance with regulatory requirements.

In accordance with the “Rules Governing Establishment of Internal Control Systems by Public Companies” promulgated by the Financial Supervisory Commission (FSC), Securities and Futures Bureau, the Company has established internal control policies and internal audit implementation guidelines as the basis for internal audit execution.

The Internal Audit Office annually formulates an audit plan and conducts audit procedures across various operational cycles during the year, including: sales and collection, procurement and payment, production, payroll, property, plant and equipment, financing, investment, research and development, electronic information processing operations, other operational management activities, monthly derivative transactions, quarterly cash lending operations, and endorsement and guarantee operations.

Audit execution is carried out by the Internal Audit Office through designing audit programs for each operational cycle, conducting interviews and audit procedures with relevant units, documenting methods and processes in working papers, and preparing audit reports. The objective is to assess and evaluate the implementation of internal controls and provide timely improvement recommendations, thereby ensuring the continuous and effective implementation of internal control systems.

Internal audit results and improvement status are provided to the Board of Directors and management to assess the overall effectiveness of internal controls and form the basis for issuing the internal control statement, which is included in the annual report published at the annual shareholders’ meeting.

The Company’s Internal Audit Office completes the following online filings within the timeframes specified by the FSC, Securities and Futures Bureau:

• • By end of December: Filing of the next year’s Annual Audit Plan

  • By end of January: Filing of Basic Information of Audit Manager and Audit Personnel

  • By end of February: Filing of the previous year’s Audit Plan Execution Report

  • By end of March: Publication of the previous year’s Internal Control System Statement

  • By end of May: Filing of the previous year’s Internal Control Deficiencies and Remediation Status