On Apr. 22, TAI FSC set guides for evaluating internal control system.
TAI FSC, TAI Justice issued order for the stipulation of relevant rules under paragraph 2 of the Regulations governing establishment of internal control systems by public companies, and the same for service enterprises in securities and futures markets.
Mandates public companies and service enterprises to design, operate internal control systems, carry out self-assessments, or engage a CPA for special audits of the system.
They must take into account the constituent elements outlined in the two regulations.
Follows TAI FSC Apr. 2024 issued amendments re internal control system, #198067.
Guidelines
Emphasizes honesty and ethical values by the board and high-level management.
Including establishing and implementing codes of conduct for directors and employees.
Regular assessment of internal control systems' effectiveness by board, supervisors.
Identify and evaluate risks related to organizational objectives; align risks with overall business goals and strategies, taking into account both external and internal factors.
Design and implementation of specific control activities tailored to identified risks.
Integrate control activities across organizational levels; use technology to support.
Efficiently process collecting, generating, using quality information to support internal controls; effective communicate with internal, external parties to ensure transparency.
Continuously, separately evaluate and check presence/functioning of internal controls.
Communicate evaluation results to management and board for timely improvements.
Effectiveness
The order will be effective from Jan. 1, 2025.
Apr. 25, 2024 TAI SITCA
On Apr. 25, 2024, TAI SITCA informed members of the regulations re internal control.
