FY Group Limited

1. The company has established an internal audit unit under the Board of Directors, dedicated to the work of internal audit. Based on the company’s size, business conditions, management demand, and other relevant laws and regulations, a competent and appropriate number of full-time internal auditors, including internal audit supervisors, and full-time internal auditors, are allocated.

2. The appointment and dismissal of the chief of internal audit of the company shall be approved by the Audit Committee, submitted to the Board of Directors for resolution, and reported for reference through the Internet information system before the tenth of the month following the approval of the Board of Directors.

3. The qualifications of internal auditors shall meet the statutory qualifications, with continuing training for the specified number of hours. The name, age, education, experience, length of service and training of internal auditors shall be reported to the Financial Management Committee in the specified format for reference through the Internet information system before the end of January each year.

Job Responsibilities

1. Evaluate the internal control and management systems.

2. Evaluate various plans or policies of the company.

3. Prepare audit reports and review self-assessment reports

4. Track the improvement of internal control deficiencies and abnormalities.

Work Content

Internal auditors shall uphold the spirit of independence and perform their duties in an objective and fair manner. In addition to reporting the auditing business to the Audit Committee regularly, the audit supervisor should also attend the Board of Directors for presentation.

The internal audit of the company includes developing an annual audit plan based on the results of the risk assessment and specifying the audit items, time, procedures, methods, etc. The auditors conduct on-site audits on a regular/irregular basis, and the audit results are submitted along with the audit working papers and related documents as an audit report for approval to ensure the continuous and effective implementation of the company’s internal control system.

Internal auditors shall reveal all the defects and abnormalities of the internal control system identified in the internal audit operations, set out in the internal control system declaration, self-inspection and accountants’ project review in the audit report, follow up after submission of the report, and prepare regular tracking reports to ensure that relevant units have taken appropriate improvement measures timely and include them as important items for the performance appraisal of each department.

After submission, the audit report and the tracking report shall be sent to the Audit Committee for review before the end of the month following the completion of the audit project. If internal auditors identify major violations or the company is at risk of major loss/damage, they shall prepare and submit a report promptly and notify the Audit Committee.

Internal auditors shall report the audit plan for the next year before the end of each fiscal year, the implementation of the previous year’s annual audit plan within two months after the end of the fiscal year, and the improvement of deficiencies and abnormalities of the internal control system identified in the internal audit of the previous year within five months after the end of the fiscal year in the specified format to the Financial Management Committee for future reference through the Internet information system.