In order to ensure the effectiveness and efficiency of operations, the Company’s reports aim to be reliable, timely, transparent, and consistent with relevant regulations and in compliance with relevant laws and regulations. The Company establishes, implements and maintains an internal control system in accordance with provisions of "Regulations Governing Establishment of Internal Control Systems by Public Companies " issued by the Financial Supervisory Commission R.O.C. (Taiwan).

The staffing and operation status of the audit unit are described as follows：

A. Appointment and Dismissal of Auditors

The audit unit allocates qualified and appropriate auditors who report directly to the Board of Directors. The appointment and dismissal, evaluation, and prescribing remunerations of internal auditors are approved by the Chairman of the Board of Directors, with the exception of the appointment and dismissal of audit supervisors, which is determined by the Board of Directors in accordance with relevant laws and regulations.

B. Operation of Audit Unit

• Draft the annual audit plan in accordance with regulations and submit it to the Board of Directors for approval. Various operational items are audited based on the audit plan and suggestions for improvement are proposed. The audit report is approved by the Chairman of the Board of the Directors first and sent to Independent Directors for review. Briefing shall be made to the Audit Committee and the Board of Directors on the status of internal audits implementation. Through the implementation of audit operations, the audit unit shall assist the Board of Directors and management in fulfilling their responsibilities regarding internal control and risk management.
• Supervise all internal units and subsidiaries to conduct self-assessment, and review the self-assessment reports of each unit and subsidiary to determine the effectiveness of the internal control system design and its implementation.
• Execute project-specific reviews depending on the actual situation.