Page 55 - TSMC 2019 Annual Report

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7 Internal Control System Execution Status
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7 1 Statement of Internal Control System Taiwan Semiconductor Manufacturing Company Limited Statement of Internal Control System Based on on the the findings of a a a a a a a a a self-assessment Taiwan Semiconductor Manufacturing Company Limited (TSMC) states the the following with regard to its internal control system during the year 2019:
1 TSMC’s Board of Directors and and management are responsible for establishing implementing and and maintaining an an an an adequate internal internal control control system Our internal internal control control is a a a a a a a a a process designed to provide reasonable assurance over the effectiveness and and efficiency of o of our operations (including profitability performance and and safeguarding of o of assets) reliability timeliness transparency of our reporting and and compliance with applicable rulings laws and and regulations 2
An internal internal control control system system has inherent limitations No matter how perfectly designed an effective internal internal control control system system can provide only reasonable assurance of of accomplishing its stated objectives Moreover the effectiveness of of an an an internal control control system may be be subject to to changes due to to extenuating circumstances beyond our our control control Nevertheless our our internal control system contains self-monitoring mechanisms and TSMC takes immediate remedial actions in in in in response to to any identified deficiencies 3
TSMC evaluates the the design and operating effectiveness of its internal control system based on on the the criteria provided in in in the the the Regulations Governing the the the Establishment of Internal Control Systems by Public Companies (herein below the the the “Regulations”) The criteria adopted by the Regulations Regulations identify five key components of managerial internal control: (1) control control environment (2) risk assessment (3) control control activities (4) information and and communication and and (5) monitoring activities 4 TSMC has evaluated the the design and operating effectiveness of its internal control system according to the the aforesaid Regulations 5 Based on on on the findings of such evaluation TSMC believes that on on on December 31 2019 it has maintained fin in in in in all material respects an an an effective internal control system (that includes the supervision and management of our subsidiaries) to provide reasonable assurance over our operational effectiveness and efficiency reliability timeliness transparency of reporting and and compliance with applicable rulings laws and and regulations 6 This Statement is is an an an an integral part of TSMC’s annual report and and prospectus and and will be made public Any falsehood concealment or other illegality in the the content made public will entail legal legal liability under Articles 20 32 171 and 174 of the Securities and Exchange Law 7 This Statement was passed by the the the Board of of Directors in in in their meeting held on on February 11 2020 with none of of the the the nine attending directors expressing dissenting opinions and the the remainder all affirming the the content of this Statement Taiwan Semiconductor Manufacturing Company Limited Mark Liu Chairman
C C C C Wei
Chief Executive Officer
February 11 2020 3
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If CPA Was Engaged to Conduct a a a a a Special Audit Audit of Internal Control System Provide Its Audit Audit Report: None