Higgstec Investor Relations: Financial Information & Shareholder Services

The company has established an "Audit Office" directly under the Board of Directors in accordance with the Regulations Governing the Establishment of Internal Control Systems by Public Companies. Based on the company's scale, a dedicated Chief Audit Officer is appointed.

1. Responsibilities of Internal Audit

The responsibilities of internal audit are to assist the Board of Directors and management in examining and reviewing deficiencies in the internal control system, as well as evaluating the effectiveness and efficiency of operations. Internal audit provides timely improvement suggestions to ensure the continuous and effective implementation of the internal control system and serves as a basis for reviewing and revising the system. The scope of audits covers all operational procedures involved in the company's nine major transaction cycles and audit items required by regulatory authorities.

2. Internal Audit Operations

1.The internal audit system is designed based on the internal control systems of each department. This system is used to review the internal controls of various operational procedures and to report on the appropriateness of the design, practical implementation, effectiveness, and efficiency of these controls.

2.Audit findings are compiled into audit reports. If issues are identified, the responsible units are required to provide an action plan and a proposed improvement timeline. Follow-up audits are conducted upon the deadline to ensure that improvements have been completed according to the action plan.

3.Audit personnel present a summary report on audit execution during the quarterly routine meetings of the Board of Directors.

4.In compliance with regulations, internal audits annually review the self-assessments of internal control systems conducted by each department. The scope includes the effectiveness and efficiency of operations, the reliability of financial reporting, and compliance with relevant laws and regulations. Risks impacting operations are evaluated, and an audit plan for the following year is drafted accordingly. After approval by the Board of Directors, audits are conducted in accordance with the plan.

3. Appointment and Dismissal of Internal Audit Personnel

The company's audit unit reports directly to the Board of Directors. The appointment or dismissal of the internal audit officer must be reviewed by the Audit Committee and approved by the Board of Directors.