Internal Audit

The Purpose of Internal Audit

To assist the Board members and mangers in reviewing and auditing the internal control procedures to see if there is any shortcoming and also to evaluate the effectiveness and efficiency of operations.
These findings then shall be reported and corresponded suggestions shall be made in order to maintain an effective internal control system and to improve this system accordingly.

Internal Audit Organization

The internal audit department is a subordinate unit to Board meeting and shall be organized with capable expertise under the consideration of business size, operation condition, management needs and the requirement of related laws and regulations.
The assignment or dismissal of chief internal auditor shall be approved by Board meeting.
Currently, the internal audit department is staffed with a chief internal auditor and a deputy when the chief internal auditor is absent thereof.
The assignment of the current chief internal auditor is approved by Board meeting.

Operation of Internal Audit

  • TMC set forth “internal control system” and “internal audit implementation rules” as guidance for the operation of internal audit department based on Regulations Governing Establishment of Internal Control Systems by Public Companies under Securities and Exchange Act.
  • Regular report to audit committee and board meeting of:
    a) internal audit findings.
    b) shortcomings found by internal audit, CPA and regulatory authority.
    c) improvements made subject to the weaknesses listed in the internal control system statement.
  • Internal auditor conducts his/ her field work based on auditing plan approved by board meeting. And some project-oriented auditing will be performed when necessary. All auditing results will be reported to top management as a monitor tool to the performance of internal control system and also as an early-warning of existing or potential risks.
  • The self-assessments performed by each department and subsidiary shall be reviewed by internal auditors to see if corresponding activities are conducted. And all the documents provided under self-assessments shall also be reviewed by internal auditors to see if quality requirements are all met.
    Self-assessment results shall be reported to the Board meeting and the President to evaluate the effectiveness of the internal control system so that an internal control statement then can be issued accordingly.
  • Internal audit related information shall be filed and published on the Market Observation Post System (MOPS).

Internal Audit Policy Documents