Audit Mechanism

SKM and the board of directors have set up an independent audit department. The directors can appoint and remove the manager of the audit unit to inspect and control the overall operation of the organization. SKM has established an effective and complete audit system according to the "Regulations Governing Establishment of Internal Control Systems by Public Companies." According to the company by-laws, laws and policies, and internal control systems, the audit department creates a detailed audit task list, continuously optimizes the risk assessment process mechanism, and makes an annual audit plan that specifies audit items and schedules.

At the quarterly board meeting, the audit department prepares and presents an internal audit report to the board, explaining audit deficiencies, irregularities, and suggested improvements and schedules.

The audit operation results for 2023 have been submitted to the board. No major internal control deficiencies and irregularities were found. Only suggestions were made for the operating procedure as a reference for each department to improve management quality.

Internal audit process

Plan

Make an annual audit plan

Approval

The board approves the audit plan

Execution

The audit department executes the annual audit plan

Follow Up and Improvement

Complete the follow up report,make corresponding improvements, and submit the audit results to the board.