Internal Audit organization

The purpose of internal audit is to assist the Board of Directors and the Manager in examining and reviewing the deficiencies of the internal control system and measuring the effectiveness and efficiency of operations, and to provide timely recommendations for improvement to ensure the continuous and effective implementation of the internal control system and to serve as a basis for reviewing and revising the internal control system.

Audit Office Execution

    1. Audit planning (audit plan)

　2. Execution of the audit plan to prepare audit reports and audits

　3. Quality management auditing work

　4. Internal audit system revision and evaluation

　5. Internal control system improvement suggestions

　6. Coordination and communication with various departments

　7. Project auditing operations

Internal Audit Operations

I. The Audit Office prepares an annual audit plan in accordance with the "Guidelines Governing the Establishment of Internal Control Systems in Public Companies" to examine the Company's internal control system and to prepare an audit report with working papers and related information. The annual audit plan shall be approved by the board of directors; the same applies to any amendments.

Main Audit Program -

　1. Six internal control cycle

(1) Operation and collection cycle

(2) Purchasing and payment cycle

(3) Payroll cycle

(4) Financing cycle

(5) Property, plant and equipment cycle

(6) Investment cycle

　２. Other assignments　　　　　　　

(1) Quality system

(2) Regulations set by the governing authority

II.   After the audit report is reviewed, tracking reports should be produced quarterly until improvements have been made to ensure that relevant departments have taken appropriate corrective actions in a timely manner.

III.   After the audit report and tracking report have been reviewed, they should be delivered to each independent director and supervisor for review by the end of the following month after the completion of the audit items.

IV.   The deadlines for online reporting are as follows:

1. Annual audit plan for the next year should be reported by the end of December.

2. Audit supervisor and auditor information for the current year should be reported by the end of January.

3. Execution status of the annual audit plan for the previous year should be reported by the end of February.

4. Internal control statement for the previous year should be reported by the end of March.

5. Improvement status of internal control system deficiencies and abnormalities for the previous year should be reported by the end of May.

Appointment and removal of internal auditors

On March 10, 2010, the Board of Directors approved the revision of the "Code of Corporate Governance Practices", in which the appointment, evaluation, and salary compensation of internal auditors are submitted by the audit supervisor to the Chairman of the Company for approval.