Internal Audit

The Audit Department is an independent unit,under the command and supervision of the Board of Directors, and is dedicated to internal audit operations.

1. The purpose of Internal Audit

Internal audit is to assist the Board of Directors and managers to inspect and ensure the continuous and effective implementation of the internal control system, and make timely recommendations for improvements to promote operational performance.

2. Audit department

The allocation of an audit manager shall be passed by the Board of Directors, and a qualified and appropriate number of full-time internal auditors shall be allocated based on the company's size, business conditions, management needs and other legal provisions. The appointment and removal of the internal audit manager shall be approved by the Board of Directors and reported to the competent authority through the Internet information system for reference. The appointment, dismissal, evaluation, salary and compensation of internal auditors are the same as those of ordinary employees and shall be signed and approved by the audit supervisor and reported to the Board chairman.

3. Audit operation

Internal audit department shall formulate annual audit plans based on the results of the risk assessment and the same should be passed by the Boards of Directors.

The results of the audit will be compiled into an audit report and submitted to the chairman and independent director.

The audit report will be tracked on a quarterly basis until improvements are made, and the tracking report will be submitted to the chairman and independent director.

If internal auditors discover major violations or the company is in danger of suffering major damage, they will immediately prepare a report and notify the independent directors and chairman.