accordingly. The revised rules on the rotation of auditors specify that the auditors of a listed company must be rotated off after 7 cumulative years of service and must serve a cooling-off period for 5

matter are changed, SEC must revise the rules on the rotation of auditors accordingly. SEC has recently revised the rules on rotation of auditors of listed companies and will likewise revise such rules

reporting process, ensure the company has efficient internal control system, monitor the performance of the company to ensure compliance with the laws and regulations, review transaction that may have

• Framework for promotion of audit quality • Revised requirement on auditor’s rotation pursuant to the Code of Ethics for Professional Accountants In addition, the SEC’s representatives were guest speakers at

Directors' Meeting No.8/2020, Appointment of Directors in Replacement of Those who will Retire by Rotation, and Addition of Agenda Items for the 2020 Annual General Meeting of Shareholders.(amended) 17/09

capital market. Nonetheless, the SEC still identified certain deficiencies in the quality control system in this inspection cycle such as rotation of auditors, insufficiency of human resources, completeness

and approval To motivate the personnel’s dedication to their work, to enhance the employees’ spirit of ownership in their organisation and to ensure the efficient and sustainable growth of business

reviewed to be more consistent with the current market landscape. This will benefit further development of international cooperation to be more comprehensive and efficient.

1 24 August 2020 Subject : Notification on Resolution of the Board of Directors’ Meeting No.8/2020, Appointment of Directors in Replacement of Those who will Retire by Rotation, and Addition of

efficient and effective monitoring process. Along the same line, the inspection results of individual engagements showed promising improvement of audit quality in the capital market, as reflected in the