CORPORATE GOVERNANCE

Internal Audit Organization:

The Company has established an Internal Audit Office, which reports to the Board of Directors. The Chief Auditor is appointed by the Board of Directors. The Internal Audit Office is staffed with dedicated personnel, including one audit head and eleven audit staff.  The appointment, dismissal, evaluation, and compensation of internal audit staff are reported to the Chairman by the Chief Auditor.

Internal Audit Operations:

1. Formulation and Approval of the Audit Plan:
   
   The Internal Audit Office, in accordance with legal regulations and risk assessments, formulates audit plans and submits them for Board approval.
   
   
2. Internal Audit Workflow:

• Internal Audit Office executes audits based on the approved audit plans, providing recommendations for improvement to ensure the continuous and effective implementation of the internal control system.
• The Chief Auditor regularly reports audit execution status and results to the Audit Committee and the Board of Directors to reinforce the spirit of corporate governance.
• Recommendations for audit improvements are monitored to ensure that the management has implemented appropriate corrective actions.
• The Internal Audit Office reviews the internal control self-assessments conducted by all Company units and subsidiaries.   The results of the self-assessments serve as the basis for the Chairman and the President to issue the Internal Control System Statement, which is then submitted to the Board of Directors for approval.

Internal Audit Mail Box:
ia@fareastone.com.tw