The main function of the Audit Committee is to supervise the following matters:
1.Fair presentation of the financial reports of this Corporation.
2.The hiring (and dismissal), independence, and performance of certificated public accountants of this Corporation.
3.The effective implementation of the internal control system of this Corporation.
4.Compliance with relevant laws and regulations by this Corporation.
5.Management of the existing or potential risks of this Corporation.
The members of the Audit Committee are composed of the entire number of independent directors. According to Sincere Navigation Corporation’s Audit Committee Charter, the committee consists of a convener and 3 other members, or 4 members in total.
| Title | Name | Selected Education & Past Positions |
|---|---|---|
| Convener | Lee, Yen-Sung | Master, Accounting, Soochow University Deputy Chairman of PwC Taiwan Chairman of Taipei CPA Association Director of Accounting Research and Development Foundation Director of Taiwan Accountant Association Vice Chairman of the National Federation of CPA Associations of the R.O.C. Supervisors Convener of the Real Estate Agents Transaction Guaranty Foundation Current: Advisor of the Real Estate Agents Transaction Guaranty Foundation Independent Director of FamilyMart, Charoen Pokphand Enterprise (Taiwan) Co., Ltd., Chicony Electronics Co., Ltd., Qunguang Electronics Co., Ltd., and Sincere Navigation Corporation Lecturer, Dept. Accounting, College of Management National Taiwan University |
| Committee | Tseng, Kuo-Cheng | Master, Naval Architecture, National Taiwan University President, CSBC Corporation, Taiwan Advisor of Ship and Ocean Industries R&D Center (SOIC) Advisor of Metal Industries Research & Development Center Adjunct Professor Rank Specialist at National Cheng Kung University Adjunct Asociate Professor of Professional and Technical Personnel at National Kaohsiung University of Science and Technology Chairman and President of High Tien Offshore Co., Ltd. Chairman of the Maritime Engineering Joint Promotion Association, R.O.C. Chairman, CSBC-DEME Wind Engineering Co. Ltd. Current: Independent Director of IOVTEC Co., Ltd. Independent Director of Sincere Navigation Corporation |
| Committee | Koo, Tse-Hau | B.S., Business Administration, Boston University Chairman of HKMPB Promotion and External Relations Committee, Member of Manpower Development Committee Chairman of ClassNK Hong Kong Committee Executive Committee Member of INTERTANKO, the International Association of Independent Tanker Owners Board of Directors of NorthStandard P&I Association Chairman of VTC Maritime Services Training Institute Committee Chairman of Hong Kong Shipowners Association Current: Executive Director, Valles Steamship Company Limited Independent Director of Sincere Navigation Corporation |
| Committee | Wen, Fang-Yu | Master, Accounting, National Taiwan University Partner CPA, PwC Taiwan Chief CPA of Risk and Quality Control, PwC Taiwan Advisor of Financial Accounting Issues Task Force, Accounting Research and Development Foundation Current: CPA, Wen Fang-Yu CPA Firm Independent Director of Orient Semiconductor Electronics, Ltd. |
Communication between the independent director and the internal audit manager and CPAs (including material matters, methods, and the results associated with corporate finance and business):
The audit officer regularly sends audit reports to independent directors for review. Accountants regularly report the audit results of the Company to the independent directors, and issue “Communication Letters to the Management” for bidirectional communication to facilitate independent directors to keep abreast of the Company’s financial and business performance.
Excerpts of the main communicated issues in 2023 are as follows:
Excerpts between independent directors and audit officer
| Methods of communication | Date | Topic | Main points of communication topics |
|---|---|---|---|
| Meetings called | 2023/03/09 | Third meeting of the second Audit Committee | Report on the implementation of the annual internal audit plan from October to December, 2022. Submit the 2022 Internal Control System Statement. |
| Meetings called | 2023/05/10 | Fourth meeting of the second Audit Committee | Report on the implementation of the annual internal audit plan from January to March, 2023. |
| Meetings called | 2023/08/08 | Fifth meeting of the second Audit Committee | Report on the implementation of the annual internal audit plan from April to June, 2023. |
| Meetings called | 2023/11/08 | Sixth meeting of the second Audit Committee | Report on the implementation of the annual internal audit plan from July to September, 2023. Submit the 2024 audit plan. |
| Correspondence | Monthly | Audit report and follow-up report | After the audit report and the follow-up report are approved, they will be delivered to the independent directors before the end of the following month after the completion of the audit items. |
| Correspondence | Irregular basis | Other Matters | Reply by mail or phone to explain the communication issues raised by the independent directors. |
Excerpts of communication between independent directors and CPAs
| Methods of communication | Date | Topic | Main points of communication topics |
|---|---|---|---|
| Meeting called | 2023/03/09 | Third meeting of the second Audit Committee | Report the results of the 2022 financial statement review. |
| Meeting called | 2023/05/10 | Fourth meeting of the second Audit Committee | Reporting the review results of the financial statements for the first quarter of 2023. |
| Meeting called | 2023/08/08 | Fifth meeting of the second Audit Committee | Reporting the review results of the financial statements for the second quarter of 2023. |
| Meeting called | 2023/11/08 | Sixth meeting of the second Audit Committee | Reporting the review results of the financial statements for the first three quarters of 2023. |
| Other | Irregular basis | Other matters other than the information of the Board meeting | Replying by email or phone at any time to explain the communication matters raised by the independent directors. |
Independent and Competent Assessment of Certified Public Accountants’ Audit Quality Indicators (AQI)
