1. The Company's Audit Office is an independent unit under the Board of Directors, in charge of the inspection and assessment of the internal control system, to enhance the operating performance of the Company.
2. The Audit Office appoints one internal audit officer and several auditors. The internal auditors of the Company are qualified as required by the Securities and Futures Bureau, and continuously receive continuing profession education related to internal control every year as required by laws. The list of the internal auditors is reported every year as required by laws.
3. The audit officer meets the independent directors via the Audit Committee quarterly meeting at least once, to report on the implementation and the operation of the Company's internal audit. Other than the aforesaid regular meetings, the Audit Committee convener may discuss the internal audit operation from time to time.
4. The Board checks the audit reports from the audit unit quarterly, and the audit officer participates in the Board meetings regularly to report.
5. The appointment and discharge of the audit officer shall be agreed upon by the Audit Committee and resolved by the Board of Directors.
6. The appointment and discharge, appraisal, and compensation of the internal auditors shall comply with the Company’s approval authority regulations, to be reported by the internal audit officer and approved by the Chairman.

1.  Inspect and assess if the Company and the subsidiaries’ internal control systems are effective and complete, and fully complied with.
2. Assist to improve the designs and operations of the Company and the subsidiaries' various internal control systems.
3. Audit the accuracy and integrity of the financial information, financial reports, and operational information.
4. Audit the existence of each asset to ensure the security of assets, and prevent the Company from sustaining losses.
5. Disclose any internal breach.
6. Plan, implement, check, track, assess and report the self-assessment report by each unit of the Company and subsidiaries.
7. Implement the tasks assigned by supervisors.

1.  The Audit Office formulates the annual audit plans based on the risk assessment results of the key transaction cycles and process, key finance and operation control operations, and internal operation processes required by the regulations of the competent authorities; upon the passage of annual audit plans by the Board of Directors, the audits are implemented as scheduled.
2. The auditor audits the implementation of each operation based on the planned audit items, including the integrity of regulations, charters, and procedures, the compliance of the actual operation implementations, and the accuracy of data, and assess the effectiveness of the internal control, while submitting the audit reports to state the audit results or improvement recommendations.
3. Where any deficiency or irregularity of the internal control is found during the audit implementation, the auditors shall truthfully disclose such in the audit reports and track them. The tracking report shall be prepared by the auditors at least quarterly until the improvement is done, to ensure the related units take the proper improvement measures in a timely manner.
4. The Audit Office assists each internal unit to conduct self-assessment at least once a year and checks the results of the self-assessments. By combining the improvement status of the deficiencies or irregularities of the internal control found by the Audit Office, they summarize and prepare the effectiveness assessment report of the overall internal control system, as the reference for the Board of Directors and the President to present the "Statement of Internal Control System.”

1.  The Company submits a report on the identified deficiencies, improvements, and follow-ups in the previous month to the independent directors for review monthly. The independent directors review the report and give suggestions.
2. The Company's internal audit officer regularly explains the implementation of audit activities and reports on the self-inspection carried out in response to the recent internal control failure incidents that occurred externally to the independent directors at the Audit Committee meeting held quarterly.
3. The Company's internal audit officer and independent directors may directly reach each other, if needed, through smooth communication channels.
4. The abstract of the internal audit officer's regular reports and communication contents on audit activities at Board meetings and Audit Committee meetings:

 To implement corporate governance and improve the functions of the Board of Directors, the Company has set up a whistle-blowing mailbox. Whistleblows with specific evidence are welcomed where the Company's employees are involved in any unethical or illegal conduct. For any filed complaints, the Company's Audit Office keeps such complaints confidential, and documents them as independent cases for handling, while urging related units to investigate the facts.

Please file any complaints via the following channels:

Speak Out e-mail box﹕Audit_MIC@mic.com.tw