Organization and Operation of Internal Audit

TrueLight Corporation’s internal audit system includes one dedicated Chief Audit Officer (CAO), who reports directly to the Board of Directors and also reports administratively to the highest-ranking executive of the company.

In accordance with Article 3 of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies,” which states that:
"The appointment, evaluation, and compensation of internal auditors should be submitted to the Board of Directors or approved by the Chairman upon the Chief Audit Officer’s recommendation," the company’s internal regulations are as follows:

• Appointment and Dismissal of the Chief Audit Officer:
  In accordance with the “Internal Audit System” – the appointment or dismissal of the CAO must be approved by the Audit Committee and resolved by the Board of Directors.
• Performance Evaluation of the Chief Audit Officer:
  In accordance with the “Performance Evaluation Regulations” – performance evaluation is conducted alongside the company’s annual review and is executed by the Chairman.
• Compensation of the Chief Audit Officer:
  In accordance with relevant human resources management policies and internal control regulations, combined with the results of the annual performance evaluation, the compensation is submitted to the Chairman for approval.

The company’s internal audit procedures and internal control system are implemented in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies” as prescribed by the Financial Supervisory Commission (FSC) of the Executive Yuan.

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Communication between Independent Directors and the Chief Audit Officer