Internal Audit

Internal Audit System
The design and operation as well as the Audit of TYC Internal Control System follow the Regulations for the Establishment of Internal Control System by Public Companies and other related regulations.

1. The Purpose of Internal Audit

Internal Audit aims to assist the Board of Directors and managers in inspecting and reviewing defects in the internal control system, measure the degree of compliance with the operating system performance. Internal Audit shall make timely recommendations for improvements to ensure sustained operating effectiveness of the system, with the overall goal of achieving sound operation within TYC.

2. Organization of Internal Audit

Internal Audit reports to the Board of Directors, independently performs the duties of internal audit, and shall appoint qualified persons in an appropriate number as full-time internal auditors based on company scale, business conditions, management needs, and other applicable laws and regulations. The department is comprised of a chief audit executive and an internal auditors.

Any appointment or discharge of the chief audit executive shall be approved by the Board of Directors, and be reported to the FSC for recordation 
via the Internet-based information system by the 10th day of the following month.

The qualification of internal auditors shall follow the regulations and shall be supported by ongoing and prescribed hours of training. The names, ages, educational background, experience, seniority, and training of the internal auditors shall be reported to the FSC for recordation by the end of January each year via the Internet-based information system.

3. Operation of Internal Audit

Internal auditors shall be independent, objective, and impartial in performing their duties by the spirit of truth and amiable attitude and in addition to reporting their audit operations to each supervisor on a regular basis, the chief audit executive shall also attend and deliver a report to the Board of Directors meeting.

Audit shall be conducted according to the audit items, times, procedures, and methodology listed in the risk assessment plan to develop an annual audit plan.
Annual self-assessment of internal control system shall first be conducted periodically by all internal
departments and subsidiaries themselves . The design of internal control system and the inspection of effective assessment shall be conducted by self-assessment leaders from its departments respectively and then reports shall be reviewed by internal auditors. Any internal control irregularities found during the internal audit require appropriate corrective action to be taken in a timely manner as a basis of performance evaluation by the Board of Directors and General manager. The Internal Control System Statement shall be publicly announced and reported on the websites designated by the FSC within three months of the end of each fiscal year in the prescribed format.

Internal auditors shall faithfully disclose in audit reports any defects and irregularities discovered in the internal control system, after having presented the reports, follow up on the matter, preparing follow-up reports on a regular basis to ensure that the relevant departments have taken appropriate corrective actions in a timely manner as a basis for performance evaluation. internal auditors shall submit the same for review by the supervisors by the end of the month following the completion of the audit. Any material violation or likelihood of material damage to the company shall be promptly reported to the supervisors.

Internal auditors shall submit its next year's audit plan to the FSC for recordation by the end of each fiscal year, a report on the execution of its previous year's annual audit plan within two months from the end of each fiscal year, and its corrections of any defects and irregularities of the internal control system discovered during the past year's internal audits within five months from the end of each fiscal year in the prescribed format via the internet-based information system.
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