Internal Auditing Organization and Operation

Internal Auditing Organization :
The auditing office of our corporate is an independent unit, which is under the jurisdiction of Board of Directors. The auditing office includes audit supervisor and two full-time auditors, they are responsible for making report monthly or occasionally to the Chairman of the Board except for the routine report on Board of Directors on a quaterly basis.
 
Internal Auditing Operation :
1. We set "Internal Control System", "Internal Audit Implementation Rules" and "Internal Control System and
     Self-Inspection Program" according to "Regulations Governing Establishment of Internal Control Systems
     by Public Companies".
 
2. Audit work is mainly focus on the implementation of the annual audit plan approved by the Board, and carry out the audit
    project depand on the necessity. After the completion of the internal audit work, they will make audit report to the
    Chairman of the Board.
 
3. If found any possible internal deficiency or abnormal matters, the auditors would coordinate each departments for
    improvement and check the improvement schedule on a regular basis.
 
4. The auditing report and improvement are not only reviewed by the Chairman of the Board and supervisors, but also
     reported on the Board of Directors.
 
5. The auditing office urges every unit and subsidiaries of the company to perform an internal control self-inspection and  
     review inspection reports on their own, in order to establish the company self-monitoring mechanism.
 
6. The auditing office will provide the Board of Director the result of internal self-inspection and improments of internal
     deficiency or abnormal matters from every unit, to evaluate the effectiveness of internal control system and as an
     background to issue the statement.