Internal audit

Eson Precision Ind. Co., Ltd. has set up an internal audit unit affiliated to the board of directors and is dedicated to the internal audit work. In accordance with the company's scale, business conditions, management needs and other relevant laws and regulations, an audit supervisor and a qualified and appropriate number of internal auditors to which he belongs are assigned.

The appointment and removal of the CAE must be approved by the audit committee and a resolution of the board of directors must be submitted.

The qualifications of the internal auditors meet the statutory qualification requirements, and the continuous training reaches the prescribed hours.

Appointment, dismissal, performance review, salary and compensation of internal auditor are submitted by the CAE to the Chairman for approval.

The majority of audit work is executed according to risk and an annual plan approved by the Board of Directors. Special audits or reviews are conducted as needed to timely discover possible internal control deficiencies, supervise improvement, issue audit reports, and regularly report to the Audit Committee and the Board of Directors. Internal Audit assists the Board and management to achieve goals by assessing and improving effectiveness of risk management, the control and processes. In addition, Internal Audit also supervise all functions and regions to perform self- assessments to establish a self-supervision mechanism of the company. Taking the evaluation results as the basis, the Chairman and the president issue an Internal Control Statement.