The internal audit organization of the Chicony Power is an independent unit with 1 internal auditing officer and 1 dedicated auditor reports directly to the Board of Directors. The appointment and dismissal of the internal auditing officer must be approved by the Audit Committee and submitted to the Board of Directors for approval. The appointment, dismissal, performance evaluation, promotion, and compensation of the company's internal auditors are performed based on "Human Resource Management Approval Authority Table ". The performance evaluation is performed twice a year. The aforementioned appointment, dismissal, performance evaluation and compensation actions are submitted by the internal auditing officer to the Chairman for approval.

In addition to regularly attending and delivering a report to the Audit Committee and the Board of Directors to report, the internal auditing officer report to the Independent Director, the Chairman and the President on as needed basis. The internal audit system stipulates the audit process, reporting system, audit checkpoints, and operations subject to audit, including all the operations of the Company per se and all its subsidiaries in order to help the senior management of the Company timely identify existing and/or potential internal control issues. The majority of the audit work is executed according to an annual plan, which needs to be approved by the Board of Directors. Such plan will take into account risks that have been identified. Special audits or reviews are conducted as needed.

All the audit findings and corrections accordingly made shall be recorded, tracked, and timely provided to the senior management for evaluation of the improvement of issues audited. The company supplements the review activities by Internal Audit with documented self-assessments by the divisions and all regions. Internal Audit sees to it that these activities do take place, and reviews the submissions to ensure the quality of the process; it consolidates the results of the self-assessments for the President and the Board of Directors.