Communication between Chief Auditor and Independent Directors in 2023 is listed as follows:

Date and Session of Audit Committee Meeting Proposal Independent Directors' Opinions Actions in Response to Independent Directors' Opinions

2023.02.22
The 3rd meeting of the Audit Committee of the 18th Board of Directors

The “2022 Statement on Internal Control System” of the Company
Unanimously approved.
Not applicable
Date and Session of Communication with Independent Directors Key Points Independent Directors' Opinions Actions in Response to Independent Directors' Opinions
2023.02.22
The 1st communication between Independent Directors and Chief Auditor in 2023
Audit implementation from October 2022 to January 2023
  1. The internal audit office lacks personnel with a financial and accounting background. How to overcome relevant issues encountered during the auditing process? Does it affect audit work, and is there any collaboration with other departments for support?
  2. Many of the deficiencies identified in audit operations stem from human factors. After investigation, strict measures must be taken. Is the relevant investigation results communicated to the subsidiary's Chairman and President and reported to the Group's Chairman as a reference for appointing subsidiary chairmen and presidents?
  1. Audit personnel with financial and accounting backgrounds pass on auditing experiences and techniques to non-financial professionals and inexperienced personnel. Therefore, there is minimal impact on audit quality and completeness. The internal audit office has not sought support from personnel in other departments for audit work.
  2. Following business audits and handling major complaint cases, audit reports are submitted for review and approval by the Chairman, then forwarded to the Vice President of the respective divisons of the audited units and the subsidiary's chairman/president for their understanding, facilitating the tracking of internal control improvement effectiveness.
2023.05.03
The 2nd communication between Independent Directors and Chief Auditor in 2023
Audit implementation from February to March 2023
  1. The purchasing department has various reasons for specifying certain brands or suppliers, and supervisors should be attentive and make specific requests.
  2. At what stage is hedging executed for foreign currency equipment procurement projects?
  1. The procurement of specified brands or suppliers is proposed by the on-site requisition unit. The key point of this issue is that appropriate boundaries must be defined on the interaction between the organizing unit and the supplier.
  2. In practice, hedging can only be carried out after the contract is signed.
2023.08.02
The 3rd communication between Independent Directors and Chief Auditor in 2023
Audit implementation from April to June 2023
The internal audit office should be reminded to ensure personal safety during the investigation of complaint cases.
Following investigations into complaint cases, there have been no instances of retaliation from implicated parties. Additionally, confidentiality principles are strictly adhered to throughout the investigation process to prevent individuals involved from attempting to influence the outcome through various channels. The Chief Auditor regularly advises colleagues against conducting surveillance or visiting crime scenes alone and emphasizes the need for at least 2 to 3 people present or enlisting the assistance of security personnel.
2023.11.02
The 4th communication between Independent Directors and Chief Auditor in 2023
Audit implementation from July to September 2023
  1. Has the China Steel Corporation Information Security Committee ever requested the subsidiary with Cybersecurity vulnerabilities to improve within a specified period? Is the China Steel Corporation internal audit office able to access audit reports of subsidiaries of its subsidiaries? Regarding internal control deficiencies in subsidiaries of its subsidiaries, does the China Steel Corporation internal audit office supervise their improvement?
  2. If serious fraud or corruption occurs in a subsidiary, are there any relevant procedures for handling or reporting to China Steel Corporation for action?
  1. The China Steel Corporation Information Security Committee directly or indirectly oversees the information security situation of subsidiaries. Additionally, the Information System Department of the Finance Division regularly visits and inventories the implementation of information security measures in each subsidiary. Procedurally, the China Steel Corporation internal audit office does not directly access audit reports issued by subsidiaries of its subsidiaries. However, since the China Steel Corporation internal audit office also reviews audit reports issued by subsidiaries following audits of the operations of their subsidiaries, it indirectly oversees and supervises the internal control management of subsidiaries of its subsidiaries in various operational cycles.
  2. After accepting and completing the investigation of major fraud cases, the China Steel Corporation internal audit office prepares comprehensive audit reports for Chairman's approval and notifies division heads or subsidiaries for strict punishment in cases of fraud.