Organizational Structure

The Company’s internal audit function reports to the Board of Directors. It is led by a full-time Chief Internal Auditor and includes internal audit personnel from domestic and overseas subsidiaries, with a total of six staff members.

Objectives and Functions of Internal Audit

• Assurance: To evaluate whether the design of the internal control system is sound and whether its implementation is effective, thereby ensuring the reliability of financial information, the safeguarding of assets, and compliance with applicable laws and regulations.

• Consulting: To provide management with professional advice on risk management, operational efficiency, and process improvement, assist in identifying potential issues, and propose improvement recommendations.

• Improvement: Through a systematic approach, to provide improvement recommendations and assist in enhancing organizational operational efficiency in support of the achievement of business objectives.

Key Characteristics of Internal Audit Operations

• Independence and Objectivity: The internal audit function generally reports directly to the Board of Directors or the Audit Committee and is not subject to influence from operational units, thereby ensuring objectivity and impartiality.

• Systematic and Disciplined Approach: Internal audit activities are conducted in accordance with standardized methodologies and annual audit plans to ensure adequate coverage and consistency.

• Broad Scope: The scope of internal audit is not limited to financial matters, but also encompasses operations, information systems, compliance, and other organizational activities.

Audit Scope and Coverage

The scope of internal audit covers all departments of the Company, its branch offices, and all subsidiaries as required by applicable regulations. Audit activities include the review of the design and implementation of internal control systems across financial, business, operational, and management functions, with the objective of assessing their effectiveness, legality, security, and achievement of objectives, and providing recommendations for improvement.

Internal Control Self-Assessment Mechanism

Internal Control Self-Assessment (ICSA) refers to the periodic process by which departments evaluate the effectiveness of their internal control systems, including risk management and control procedures. The results are subsequently reviewed by the internal audit function and reported to the Board of Directors and the President, serving as the basis for issuing the Internal Control Statement. This mechanism is an important means of strengthening corporate governance and promoting continuous improvement.