Purpose

The purpose of internal audit of the Company is to investigate and assess the lack of internal control system, to measure the efficiency of operation then provide timely improvement suggestions. So as to ensure the continuous and effective implementation of the internal control system, and assist the management to implements the responsibilities.

Function

1. To investigate and assess the company's internal control system, and the soundness, rationality and effectiveness of various management systems.
2. To investigate and assess the efficiency of various units or units in the enterprise in implementing various plans or policies and functions of the company. Such as determining the appropriate grouping of personnel in each branch or department; keeping track of the trading cycles and adequately guarding against wastage, fraud or inefficiency in the use of cash, inventory or other assets. Also comparatively analyzing the operating performance of the company, reviewing the operating results and take effective measures to enhance business efficiency.

Category

1. To investigate and evaluate the internal control system to measure the compliance with current policies and procedures, and their impact on various operating activities.
2. Determine the audit items, timing, procedures (method), the laws and regulations in accordance with the regulations and the form used.

Behavioral norms of auditors

The internal auditors should be independent and perform their duties in an objective and fair manner, in a spirit of truth-seeking and truth-seeking, in a loyal and diligent manner.

Audit staff training

1. The internal auditors of the newly appointed public offering company shall take over 18 hours of professional training courses organized by the designated professional training institutions within six months from the date of their audit.
2. Each year, internal auditors should attend designated professional training institutions and hold professional training courses for more than 12 hours, or participate in internal audit courses approved by the securities regulatory authorities, or study at or above universities and may earn credits or graduation proof of the course more than twelve hours...etc.

Audit unit settings

1. The company should set auditing staff at least one, and full-time, under the board of directors.
2. Periodic audits are performed by the auditors according to plan; irregular audits are handled by the company's top  executives or their authorized officers.
3. The appointment and dismissal of the audit super visor shall be approved by a majority of the board of directors, and the reasons for such change shall be filled in by the 10th of the following month and the minutes of the board meeting shall be submitted to the competent authority for reference.
4. The appointment, dismissal, evaluation and salary of internal auditors shall be submitted by the audit supervisor to Chairman for approval.

Operation process

1. The auditing unit should prepare an "audit plan" for the purpose of checking to assess the efficiency of the units in performing their designated functions.
2. Auditors should take the audit plan to general manager and chairman of the board, and approved by the board of directors. Regular audit by the auditors according to the implementation of the program, from time to time audit by the company's chief executive or intructed by authorized person.
3. Auditors should prepare auditing reports according to the prescribed format and make them into a booklet for safekeeping. They shall submit the implementation of the auditing work and major issues to the supervisors and independent directors before the end of the audit period after the completion of the audit. If auditors find a material breach of contract or the company is at risk of major damage, they should report immediately and notify each supervisor and independent director.
4. The auditors should analyze the problems found during the implementation of the work and put forward the suggestions for improving the audit report. The audit report will be presented to the chairman of the board and submitted to the relevant management for reference.
5. The auditors should follow up on the progress of the implementation of the improvement items mentioned in the audit report and report to the chairman.

Declared matters of audit operation announcement

1. The appointment and dismissal of the internal audit supervisor shall be approved by the board of directors, and shall be reported to the securities authority for examination by the internet information system before the 10th of the next month passed by the board of directors.
2. Before the end of each fiscal year, the auditing plan for the next fiscal year shall be submitted to the securities authority under the internet information system for future reference.
3. Before the end of January of each year, the internal auditor's name, age, academic record, experience, length of service, training and other informations shall be submitted to the securities authority under the Internet Information System for further reference in the prescribed format for future reference.
4. Within two months after the end of each fiscal year, the implementation of the annual audit plan of the previous year shall be filed in accordance with the provisions of the competent securities authorities for reference.
5. Within three months after the end of each fiscal year, a copy of the statement of internal control system in accordance with the prescribed format shall be attached to the record of the board of directors for the record to be examined by the competent securities authority.
6. Within five months after the end of each fiscal year, the internal control system of the previous year shall be reviewed for lack of internal control system and improvement in abnormal circumstances. The Board of Supervisors of Internet Information Department shall report to the Audit Committee for reference in accordance with the prescribed format for reference.

Communication status between independent directors, audit supervisor, and certified public accountants(CPAs)

Individual meetings between independent directors, audit supervisor, and CPAs are convened regularly each year. The aforementioned audit supervisor and CPAs directly communicate with independent directors via email, phone, or face-to-face meetings as necessary; periodically review the Corporation's financial and business conditions according to regulations; and directly communicate with management and governance units.