Internal Audit

Audit Organization

TCC has established an internal audit unit under the Board of Directors. The unit is composed entirely of full-time personnel, including 1 Chief Auditor and 9 audit staff members, totaling 10 employees (2 of whom have CPA certificates). They are responsible for executing audit tasks for TCC and its subsidiaries.

The appointment and dismissal of TCC's internal Audit Supervisor have been approved by the Audit Committee in accordance with the law, and resolved by the Board of Directors.

Audit Work Description

TCC's internal audit unit formulates an annual audit plan based on risk assessment results, which includes monthly audit items, and implements the annual audit plan to evaluate its internal control system, and prepares audit reports supported by working papers and relevant materials.

For the deficiencies and abnormalities found in the evaluation of the internal control system, follow-up is conducted after the report is submitted for approval, and quarterly follow-up reports are made until improvements are completed, to ensure that relevant units have taken appropriate improvement measures in a timely manner.

Formulating Audit Plan

TCC's internal audit unit formulates an annual audit plan based on risk assessment results, which is approved by resolution of the Board of Directors. During Board discussions, the opinions of each independent director are considered and recorded in the minutes of the Board meeting. 
TCC has included the following items in the annual audit plan as audit items in accordance with Article 13 of the "Regulations Governing Establishment of Internal Control Systems by Public Companies

1. Compliance with laws and regulations.
2. Control operations for major financial and business activities such as acquisition or disposal of assets, engagement in derivative transactions, lending of funds to others, endorsements or guarantees for others, and management of related party transactions.
3. Supervision and management of subsidiaries.
4. Management of Board meeting operations.
5. Management of the financial statement preparation process, including management of the application of International Financial Reporting Standards, professional accounting judgment procedures, and processes for changes in accounting policies and estimates.
6. Information security inspection
7. Important operational cycles such as sales and collection cycle, purchasing and payment cycle.
8. Management of Audit Committee meeting operations.
9. Management of Remuneration Committee operations.
10. Management of sustainability information.

Submit audit report

Execute the audit items each month in accordance with the annual audit plan to evaluate TCC's internal control system. Prepare an audit report, including working papers and related materials, and submit it to the Audit Committee for review by the end of the month following the completion of the audit.

Track audit deficiencies

For internal control system deficiencies and abnormal matters discovered, all are truthfully disclosed in the audit report, and are tracked after the report is approved, with quarterly tracking reports prepared to ensure that relevant units have taken appropriate improvement measures in a timely manner. After the tracking report is approved, it shall be submitted to the Audit Committee for review by the end of the following month.

Evaluation of internal control system

Review the self-assessment reports of each unit and subsidiary, together with the improvement status of internal control deficiencies and abnormal matters identified by the audit unit, to serve as the main basis for the Board of Directors and President to evaluate the effectiveness of the overall internal control system and issue the Statement of Internal Control System.

Supervision and management of subsidiaries

1. Regularly or irregularly implement audit operations for subsidiaries. After the findings and recommendations in the audit reports are approved, notify each audited subsidiary to make improvements, and prepare regular tracking reports to ensure that appropriate improvement measures have been taken in a timely manner.
2. Review the audit reports or self-assessment reports submitted by subsidiaries, and track the improvement status of their internal control system deficiencies and abnormal matters.

Communication principles between Independent Directors and the Audit Supervisor

• Written report ：Audit reports and tracking reports are submitted to the convener of the Audit Committee for approval, and then delivered to each Independent Director for review before the end of the following month.
• Presentation：The Audit Supervisor reports on important audit work of TCC and its subsidiaries to Independent Directors at the quarterly Audit Committee meetings and responds to inquiries.
• Others：If major violations are discovered or the company is at risk of suffering significant damage, a report should be prepared and submitted immediately, and all Independent Directors should be notified.

Reporting Mechanism for Violation of Code of Conduct

To maintain TCC's reputation, protect its assets, and prevent damages to the rights and interests of shareholders, employees, and partners due to corruption, theft, embezzlement, personal gain, fraud, or other unethical and dishonest behavior, a reporting channels and handling procedures has been established to enhance corporate governance and ensure the legal rights of whistleblowers and related parties.

Download the Reporting Mechanism for Violation of Code of Conduct

Communication Between Independent Directors and the Audit Supervisor