Internal Audit

The purpose of the Company’s internal audit is to assist the board of directors and management in examining and reviewing deficiencies in internal control systems, measuring operational effectiveness and efficiency, and providing improvement recommendations in a timely manner to ensure continuous effective implementation of internal control systems and serve as a basis for reviewing and revising internal control systems. In accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies, Cameo Communications considers the overall operational activities of itself and its subsidiaries to establish effective internal control systems and continuously reviews and improves them to respond to changes in the Company’s internal and external environment, ensuring the design and implementation of internal control systems remain continuously effective. To ensure audit personnel maintain impartial and independent positions when executing audit work, Cameo Communications establishes an independent audit office under the board of directors in accordance with the law, staffed with dedicated audit personnel. The Regulations Governing Establishment of Internal Control Systems by Public Companies stipulates that any appointment and dismissal of the chief internal auditor shall be approved by the audit committee and submitted to the board of directors for a resolution, and the appointment, dismissal, assessment, salary and remuneration of internal audit personnel shall proposed to the board of directors through an audit officer for approval。

In addition to conducting self-assessment operations of internal control systems, Cameo Communications’ board of directors and management review the self-assessment results of each department and audit reports from the audit office at least annually. The audit supervisor attends board meetings as required to report on audit business execution status and attends audit committee meetings at least quarterly to report to independent directors on the Company’s internal audit execution status and internal control operations。

Furthermore, the audit office annually reviews internal control system self-assessment reports from all Company units and subsidiaries, along with improvements to internal control deficiencies and abnormal items discovered, providing the board of directors and General Manager with a basis for evaluating overall internal control system effectiveness and issuing internal control system statements. Moreover, to strengthen the professional capabilities of audit personnel, Cameo Communications arranges for audit personnel to continue their education and participate in internal audit training held by institutions designated by competent authorities to enhance and maintain audit quality and execution effectiveness. During the year, audit personnel received training totalling 12 hours per person。

Through continuous monitoring by audit personnel of the Company’s implementation of various operational systems, Cameo Communications establishes good governance practices and risk control mechanisms, creating a sustainable business environment. During the year, the audit office executed 36 audit operations with 100% audit compliance rate and no major non-compliance items. All non-compliance items were improved and closed within the deadline。