Organization and Operations of Internal Audit

The Internal Audit Office is an independent unit directly subordinate to the Board of Directors. In addition to attending regular Board of Directors meetings to present reports, it reports periodically or as needed to the Chairman, the Audit Committee, and senior management.

The Company has established the Internal Audit System, Internal Control System, and Audit Guidelines. Based on the results of annual audit findings and risk assessments across various operational cycles, an annual audit plan for the following year is formulated, approved by the Board of Directors, and implemented accordingly. In addition, special audits are conducted as operational needs arise.

The scope of internal audit covers all operational activities of the Company and its subsidiaries. Through internal audit and internal control activities, it provides management with insight into existing or potential issues. Tracking records are maintained for all corrective, remedial, and preventive measures addressing audit findings, and reports are submitted to management to present improvement progress.

The Company and its subsidiaries conduct a self-assessment of the internal control system at least once a year. The self-assessment results are reviewed by the Internal Audit Office to ensure quality and completeness, and the consolidated findings are reported to the Board of Directors and senior management as a primary basis for evaluating the effectiveness of the internal control system and issuing the Statement on Internal Control System.

Appointment and Dismissal of Internal Auditors

The Company has established the Regulations Governing the Appointment, Dismissal, Performance Evaluation, and Compensation of Internal Auditors. Matters concerning appointment, dismissal, evaluation, and remuneration are submitted by the Chief Internal Auditor to the Chairman for final approval. Performance evaluations are conducted annually, and the relevant regulations have been disclosed in the internal rules section of the Company's intranet/website.