The Company’s internal audit function is an independent unit under the Board of Directors. It regularly reports audit activities to the Audit Committee and Board, and attends Board meetings, providing occasional reports to the Chairman, CEO, and independent directors when necessary.

The appointment and removal of internal audit personnel are approved by the Audit Committee and submitted to the Board for resolution. Their performance evaluation and compensation are determined according to the Company’s personnel procedures.

Internal audit personnel develop the annual audit plan based on legal requirements and the Company’s risk assessment. In addition to executing audit items approved by the Audit Committee and the Board as part of the annual audit plan, they also perform occasional project audits to identify deficiencies in internal controls and offer improvement suggestions. The corrective actions of audited units are included in the audit report, which is followed up quarterly until improvements are made. Once completed, the audit and follow-up reports are submitted to the Audit Committee for review by the independent directors before the end of the following month.