Corporate governance

Organizational operation of internal audit

I. Internal Audit Organization

The internal audit of the company is an independent unit, directly under the board of directors; in addition to reporting at the regular meeting of the board of directors, it also reports to the chairman of the board on a monthly basis or when necessary.

The qualifications of internal auditors shall meet the eligibility requirements of laws and regulations, and shall continue to study for a specified number of hours. The internal auditor's name, age, educational background, experience, years of service and training, etc., should be reported to the Internet information system for future reference before the end of January each year in accordance with the prescribed format.


II. The operation of internal audit

The main responsibilities are to assist the management to establish and implement the internal control system, so as to improve the company's operation and reasonably ensure the achievement of the following objectives:
1. Operational effectiveness and efficiency.
2. The reports are reliable, timely, transparent and comply with relevant norms.
3. Compliance with relevant laws and regulations.

Design the internal audit system according to the internal control system of each department, review the internal control of each operating procedure according to this internal audit system, and report whether the design, practical operation, effect and efficiency of such control are appropriate. The internal audit will review the internal control system of each department every year according to the laws and regulations, and the scope includes the effectiveness and efficiency of operations, the reliability of financial reporting, and the internal control related to compliance with relevant laws and regulations, etc.; In order to prepare the audit plan for the next year, after the approval of the board of directors, the audit will be carried out according to the plan.


III. Self-inspection of internal control

The internal audit unit reviews the self-inspection reports regularly performed by each internal unit. According to the results of the review and the improvement of the internal control defects and abnormal matters found by the internal audit unit, complete the work report on the self-inspection of the internal control system, evaluate the effectiveness of the company's overall internal control system as the general manager and the board of directors, and issue the internal control system basis for the declaration. The internal control system statement shall be announced and declared on the designated website within the time specified by the competent authority, and published in the annual report.


IV. Appointment and dismissal of internal auditors

The appointment and dismissal of the internal audit supervisor is approved by the board of directors, and the evaluation and remuneration are approved by the chairman of the board.