Internal Audit Organization and Operation：
➀The internal audit of the company is an independent unit directly under the board of directors.
➁The internal audit is responsible for checking and reviewing the deficiencies of the internal control system and measuring the effectiveness and efficiency of the operation.
➂The internal audit reviews the self-inspection performed by each unit of the company and all subsidiaries, together with the improvement of internal control deficiencies and abnormal matters discovered. The results of self-evaluation are comprehensively evaluated to evaluate the effectiveness of the overall internal control system design and implementation, and a statement on internal control system is issued to the general manager, audit committee, and board of directors.
➃The audit plan is formulated based on identified risks and approved by the board of directors. The internal audit issues audit reports and tracking reports after the planned audit operations, and regularly reports to the audit committee for review. The audit supervisor attends the board of directors and reports on the audit business.
➄The audit supervisor regularly discusses with the accountant about the relevant content of internal control and internal audit deficiencies, and exchanges views with the audit committee on corporate governance and internal audit control operation deficiencies.
➅The appointment and dismissal of the internal audit supervisor of the company shall be approved by the audit committee and submitted to the board of directors for resolution.
Communication between Internal Audit Manager and Audit Committee：
1. Monthly submission of completed audit reports from the previous month to the Audit Committee. If there are any issues or instructions from the Committee, communication will be conducted through phone, email, or face-to-face meetings. If significant violations are found, or if there are reports from internal or external personnel involving directors, the Audit Committee will be immediately notified.2. Regular reporting to the Audit Committee on the execution of audit plans, explaining the discovered internal control deficiencies and abnormal improvement situations, responding to questions raised by independent directors, and strengthening risk control of audits according to their instructions.
3. The main content of communication is summarized as follows:：
| Date | Format/Target | Communication Content | Communication Situation |
|---|---|---|---|
| 2025/6/24 | Audit Committee/Independent Directors | 1.Audit Plan Execution Status (Jan–May 2025) | 1.Independent directors expressed no objections regarding the execution and effectiveness of audit tasks. |
| 2025/3/27 | 1.Audit Committee/Independent Directors 2.Exclusive Meeting between Independent Directors, Chief Internal Auditor, and CPA |
1.Audit Plan Execution Status (Jan–Feb 2025) 2.ESG and Audit – Sustainability Information Management |
1.Independent directors expressed no objections regarding the execution and effectiveness of audit tasks. 2.Independent directors expressed no objections regarding ESG and sustainability information management. |
| 2025/2/18 | Audit Committee/Independent Directors | 1. Audit Plan Execution Status for 2024 2. Proposal: 2024 Internal Control System Statement |
1. Independent directors expressed no objections regarding the execution and effectiveness of audit tasks. 2. The Audit Committee approved the 2024 Internal Control System Statement; no objections from directors. |
| 2024/12/27 | Audit Committee/Independent Directors | 1. Audit Plan Execution Status (Jan–Nov 2024) 2. Proposal: 2025 Annual Audit Plan | 1. Independent directors expressed no objections regarding the execution and effectiveness of audit tasks. 2. The Audit Committee approved the 2025 Annual Audit Plan; no objections from independent directors. |
| 2024/8/9 | Meeting for independent directors to communicate separately with the internal audit chief and the accountant | 1.Internal control deficiencies and improvement recommendations for the Kaohsiung branch production operations in fiscal year 113 | 1.The independent directors have no objections to the internal control deficiencies and improvement recommendations for the Kaohsiung branch. |
| 2024/6/25 | Audit Committee/Independent Directors | 1.Execution status of the audit plan from January to May of fiscal year 113 | 1.The independent directors have no objections regarding the execution and effectiveness of the audit operations. |
| 2024/3/26 | 1.Audit Committee/Independent Directors 2.Exclusive Meeting between Independent Directors, Chief Internal Auditor, and CPA |
1.Execution status of the audit plan for January to March of fiscal year 113. 2.Execution status of internal control improvements at the Kaohsiung branch for fiscal year 112. |
1.Independent directors have no objections to the execution and effectiveness of the audit operations. 2.Independent directors have no objections to the execution and effectiveness of the internal control improvements at the Kaohsiung branch. |
| 2024/1/30 | Audit Committee/Independent Directors | 1.Execution status of the audit plan for fiscal year 112. 2.Submission of the Internal Control System Statement for fiscal year 112. |
1.Independent directors have no objections to the execution and effectiveness of the audit operations. 2.The Internal Control System Statement for fiscal year 112 has been approved by the Audit Committee, with no objections from the independent directors. |
| 2023/11/14 | Audit Committee/Independent Directors | 1.Execution status of the audit plan from January to October of fiscal year 112. 2.Submission of the annual audit plan for fiscal year 113. |
1.Independent directors have no objections to the execution and effectiveness of the audit operations. 2.The audit plan for fiscal year 113 has been approved by the Audit Committee, with no objections from the independent directors. |
| 2023/8/10 | Audit Committee/Independent Directors | 1.Execution status of the audit plan from January to July of fiscal year 112. | 1.Independent directors have no objections to the execution and effectiveness of the audit operations. |
| 2023/4/11 | Audit Committee/Independent Directors | 1.Execution status of the audit plan for fiscal year 111 and January to March of fiscal year 112. | 1.Independent directors have no objections regarding the execution and effectiveness of audit operations. |
| 2023/2/20 | Audit Committee/Independent Director | 1.Submission of the Statement of Internal Control System for the year 111. | 1.The Statement of Internal Control System for the year 111 has been approved by the Audit Committee, and the Independent Director has no objections. |
| 2022/12/22 | Audit Committee/Independent Director | 1.Execution of the audit plan from January to November of year 111 2.Submission of the audit plan for the year 112 |
1.The Independent Director has no objections to the execution and effectiveness of the audit business. 2.The audit plan for the year 112 has been approved by the Audit Committee, and the Independent Director has no objections. |
| 2022/8/11 | Audit Committee/Independent Director | 1.Execution of the audit plan from January to July of year 111 | 1.The Independent Director has no objections to the execution and effectiveness of the audit business. |
| 2022/5/26 | Audit Committee/Independent Director | 1.Execution of the audit plan from January to April of year 111 | 1.The Independent Director has no objections to the execution and effectiveness of the audit business. |
| 2022/3/8 | Audit Committee/Independent Director | Proposal for Enhancing the Ability to Prepare Financial Reports Independently | 1.The plan to enhance the ability to prepare financial reports independently proposed by the Financial Department has been approved by the Audit Committee, and the Independent Director has no objections. 2.The audit report for the audit business has been completed in May of year 111, and the Independent Director has no objections to the internal control tracking report on the ability to prepare financial reports independently by the company. |
| 2022/2/10 | Audit Committee/Independent Director | 1.Execution of the audit plan from January to December of year 110 2.Submission of the Statement of Internal Control System for the year 110 |
1.The Independent Director has no objections to the execution and effectiveness of the audit business. 2.The Statement of Internal Control System for the year 110 has been approved by the Audit Committee, and the Independent Director has no objections. |
| 2021/12/30 | Audit Committee/Independent Director | 1.Execution of the audit plan from January to November of year 110 2.Submission of the audit plan for the year 111 |
1.The Independent Director has no objections to the execution and effectiveness of the audit business. 2.The audit plan for the year 111 has been approved by the Audit Committee, and the Independent Director has no objections. |