Communication between Audit Committee, Independent Directors, and the Chief Internal Auditor:

• • After submitting the audit report and follow-up report, the Chief Internal Auditor hands over audit items for review to all independent directors before the end of following month. Should independent directors be interested in further understanding of the status of the audit and follow-up results, they would contact the Chief Internal Auditor at any time. The Chief Internal Auditor would sit in board meetings to report the audit findings and to answer questions. Accountants maintain good communication with each audit committee member and would also sit in board meetings to answer questions when necessary.
• • Aside from attending Audit Committee meetings and answering questions, the Chief Internal Auditor also had separate interviews with each independent director. A total of four interviews were held in FY2023. At the interviews, the Chief Internal Auditor reported the audit progress and details regarding audit implementation. Summaries of interviews are as follows:

Items	Description	Names of independent directors interviewed, time of interview, and suggestions
		Hung Ching Lee	Dr. Pisin Chen	Su-Pi Shen
		2023/06/02 & 2023/12/08	2023/09/08	2023/03/14
Description of the audit plan	Audit plan for the parent company and each subsidiary for the current year was submitted to the independent directors for review and suggestion on additional audit items.	NA	NA	NA
Description of work progress	Describe audit team’s auditing items, methods, and progress prior to the review meeting.	NA	NA	NA
Description of audit progress	• Audit plan was submitted to the independent directors for review. • As of the end of this interview, some areas of improvement have been found for the current year’s audit, the audit team has proposed suggestions for rectification and requested relevant departments to act accordingly; no major flaws were identified.	NA	NA	NA
Other discussion items	• Suggestions or items that require further attention in auditing.	Inquired about a news article reported on 2023/11/08 regarding a former employee stole other employee’s identity to gain entry access to the plant and committed an act of theft. Further inquired about reasons behind the theft act and the Company’s counter-measures. After listening to the explanations, Mr. Lee recommended that the audit team should continue to track the status of implementing the proposed improvement plan.	NA	NA
	• Other recommendations or corrections to be made.	NA	NA	NA

• Related works have been enclosed in the annual audit plan, as well as the regular and irregular execution items. No significant anomalies or violations were found during the annual audit this year. Therefore, there was no matter to be reported to independent directors immediately.

Communication Between Independent Directors and Accountants:

Date	Attendees	Communication Items	Explanation From Accountants
2023/08/11	Independent Directors:   Hung Ching Lee   Dr. Pisin Chen   Su-Pi Shen CPA:   Tsao Jen Wu   Shu-Ling Lien Chief Internal Auditor:   Pei-Ming Chen Internal Audit Officer:   Tracy Li Finance Center:   Chao-Chin Hsu   Hsin-Yi Chien	CPA Mr. Wu: • Abbreviated description of annual financial audits and the direction of amendments to relevant regulations.	• The direction of this quarter’s regulations update focuses on Corporate Governance 3.0 and relevant disclosure of ISSB ESG. • Regarding the adoption of Taiwan CFC rules in 2023, the impact on Quanta is not material after discussing and assessing the impact with relevant finance and accounting departments at Quanta. As Quanta has prepared and planned in advance, relevant liabilities were already recognized in P&L. • Government around the world is promoting the Global Anti-Base Erosion (GloBE) rules, however, the implementation is still under discussion due the complexity nature of the rules. Only European countries have more contrate versions, while implementation around the world is still pending on regulations. KPMG will continue to monitor and provide more detailed updates once initial draft of regulations become more contrate and clear.
		Independent Director Ms. Shen: • Please elaborate on amendments to IAS (International Accounting Standard) 1, 8 and 12 adopted in FY2023.	• Amendments to IAS 1 focuses on the disclosure of accounting policies. Most countries, including Taiwan, tend to include standard accounting policies in the disclosure, which not only increases costs but also reduces the effectiveness of financial statements disclosure. For the purpose of reducing costs of preparing financial statements and to increase the value of information disclosure, the amendments would require entities to only disclose material accounting policies that are relevant to business operations and applicable items. • IAS 8 is the definition of accounting estimates, and to clarify the differences between accounting policies and accounting estimates. Changes in an accounting policy are applied retrospectively, while changes in accounting estimates are accounted for prospectively. • IAS 12 is on income taxes, recognition of deferred tax related to assets and liabilities arising from a single transaction would have greater impact. Following the amendments, entities are required to simultaneously recognize deferred tax related to assets and liabilities in the balance sheet.
		Independent Director Mr. Lee: • Would amendments to IAS have material impact on Quanta’s financial reports?	• No material impact on Quanta’s financial reports is expected. Amendments to IAS 1 have already been adopted in the current financial reports, while amendments to IAS 8 and IAS 12 should not have material impact on Quanta.
		Independent Director Mr. Lee: • Various industries and companies are facing labor shortages and rising costs post COVID, is there a significant impact or adjustments on your firm’s allocation of auditors to Quanta?	• Labor shortages is a common issue faced by various industries and companies, KPMG has adjusted our service teams accordingly during COVID, including the utilization of electronic, paper-less, and online processing. We further accelerated the effectiveness of computer auditing work in order to lower the burden of manual operations. • On the other hand, in response to the rising trend of auditing, as the majority of companies’ financial data is gradually relying on the ERP system, our accounting firm has also established a designated team to adopt computer auditing and ERP auditing in order to lower audit risk and operation costs.
		Independent Director Mr. Lee: • As Quanta gradually establishes subsidiaries around the world, how does your firm manage the auditing task?	• KPMG would prepare annual auditing plans in advance for each fiscal year and classify auditing plans in accordance to the operation scale and significance of each subsidiary of an audited company. For areas of greater significance, we would discuss with the company on dividing audit tasks, then appointing Taiwanese or local accounting firms to perform the auditing works. To ensure the quality of auditing works, we would provide auditing procedures to local accountants to ensure its annual auditing quality complies with the auditing regulations and standards of Taiwan. • In Quanta’s case, areas in China and the U.S. have greater significance at the present time. China is the main manufacturing operation site, while the U.S. is both sales and manufacturing center. • Auditing work during COVID was partially replaced by online review or inquiries. We plan to increase on-site auditing post COVID, especially for areas of greater significance, we will conduct on-site review of audit workpapers prepared by local auditors to ensure the auditing work adhere to the auditing standards provided by us. Currently, areas of our auditing focus are in China and the U.S., while we will also consider conducting on-site audits of subsidiaries in South East countries as areas of great significance due to increased investments and production in the region.
		Independent Director Mr. Lee: • Are all local auditing firms franchises of KPMG?	• Most of the subsidiaries are audited by our firm, but subsidiaries in some areas are audited by local accounting firms. Auditing of subsidiaries in China is conducted by ShineWing International, which has been cooperating with our firm for many years and is also one of the eight largest CPA firms in China. To ensure auditing quality, we would review their audit workpapers. Most of the reviews have been conducted over the Internet in recent years due to COVID, and we plan to resume on-site reviews and audits as the pandemic gradually eases off. • Auditing of subsidiaries in the U.S. is conducted by local accounting firms, while our firm is still responsible for the annual audits. Since the majority of financial and accounting data is already uploaded to the ERP system, our firm would also perform on-site audit aside from online audits.
		Introduction of new accountant.	• Accountant Lien: Hello, everyone, I joined KPMG in 1993 and Quanta was my very first client at the time. After becoming a certified accountant, Quanta was also the first company that I audited and attested its financial statements, so you can say that I practically grew with Quanta. I thus am very familiar with Quanta’s business operations, finance and accounting operations, as well as reviewing and auditing businesses. During my time at KPMG, I was once transferred to Shanghai office responsible for the auditing work between Taiwan and China. I feel honored to have the opportunity to service Quanta once again after several rounds of function rotation.