Kwong Fong Industries Corporation

The company's internal audit unit is affiliated with the board of directors and has an internal audit supervisor who is responsible for the audit business and reports to the board of directors and independent directors. There will be no concurrent duties that conflict with or interfere with the audit work, and all internal audit work of the company will be carried out in an independent and detached spirit.

1. The purpose of the company's internal audit is to assist the board of directors and managers to examine and review deficiencies in the internal control system and measure the effectiveness and efficiency of operations, and to provide timely improvement suggestions to ensure the continued and effective implementation of the internal control system and to review and correct internal The basis for the control system.
2. The company's internal audit unit audits the design and implementation of various internal control systems of the company's units and subsidiaries.
3. The company's internal audit unit formulates an annual audit plan based on the risk assessment results, including items that should be audited every month, and reports it to the competent authority in accordance with regulations before the end of December each year. And actually implement the annual audit plan to check the company's internal control system, and attach working papers and relevant information to prepare an audit report.
4. The company's internal audit supervisor compiles monthly audit reports and tracking reports in accordance with regulations, and sends them to the chairman of the board for approval before the end of the next month and to each independent director for review.
5. The company's internal audit supervisor attends all board meetings as required.
6. The company formulates various control operations for subsidiaries in the internal control system in accordance with regulations, and takes into account the regulations of the local government laws and the nature of the actual operations of the subsidiary, and urges its subsidiaries to establish internal control systems.
7. All internal auditors of the Company's internal audit unit continue to receive further training and participate in internal audit training organized by institutions accredited by the Financial Supervisory Commission to improve audit quality and capabilities. The company's internal auditors' names, ages, education, experience, years of service, training and other information shall be reported to the competent authority in accordance with regulations before the end of January each year.
8. The company's internal audit unit shall, before the end of February each year, report the implementation status of the annual audit plan for the previous year to the competent authority in accordance with regulations.
9. The company's internal audit unit formulates self-inspection procedures and methods for each internal unit and subsidiary in the internal control system in accordance with regulations, conducts self-inspection at least once a year, supervises the implementation of self-inspection by each unit, and reviews each unit and subsidiary The company's self-inspection report, together with the improvement of internal control deficiencies and abnormal matters discovered by the audit unit, will be submitted to the board of directors after approval by the chairman of the board to evaluate the effectiveness of the overall internal control system and issue an internal control system statement before the end of March each year. Submit the internal control system statement to the competent authority.
10. The company's internal audit department shall, before the end of May each year, report to the competent authority the improvement of internal control system deficiencies and abnormal matters found in the previous year's internal audit in accordance with regulations.
11. The appointment and removal of the company's internal audit manager shall be approved by the board of directors in accordance with regulations, and shall be reported to the competent authority in accordance with regulations before the tenth day of the month following the approval by the board of directors.

During each quarterly audit committee meeting, the accountant reports on the audit or review results of the financial statements for that quarter, along with communication on other relevant statutory requirements. Depending on the circumstances, discussions may also involve significant adjustments to entries or the impact of legal revisions on the presentation of accounts, with direct and thorough communication between independent directors and accountants.

After the internal audit supervisors presents audit reports and tracking reports to the chairman, these reports are sent to all independent directors for review via email every month. The internal audit manager also regularly communicates the results of audit reports to independent directors. Internal audit business reports are presented at each board meeting, and in case of special circumstances, immediate reporting to independent directors is carried out.