Internal Audit

The company's internal audit is an independent unit and directly subordinate to the board of directors; in addition to reporting at regular meetings of the board of directors, it also reports to the chairman and general manager every month or when necessary.

New rules for the implementation of internal audits are formulated, internal audits review the internal control of the company's operating procedures, and report on the appropriateness, effectiveness and efficiency of the design and routine practice of such controls; its scope includes all the company's operations and its subsidiaries.

The audit work is mainly carried out in accordance with the audit plan approved by the board of directors. The audit plan is drawn up based on the identified risks, and project audits or reviews are carried out as needed.

Combining the above-mentioned general audits and project execution, it provides the operating status of the internal control functions of the management, and timely provides the management to understand the existing or potential missing additional channels. Internal audit reviews the self-inspection performed by each unit, including checking whether the operation is performed and reviewing documents to ensure the quality of the implementation, and reporting the results of self-inspection to the board of directors.

The company's internal auditing unit is equipped with full-time auditors. The appointment and removal of the head of internal audit must be approved by more than one-half of all members of the audit committee and submitted to the board of directors for approval.