TSMC Annual Report > 2016 > Corporate Governance > Information Regarding TSMC’s Independent Auditor

Information Regarding TSMC’s Independent Auditor

Audit Fees

The Audit Committee approves all fees payable to TSMC's independent auditor and recommends the same to the Board of Directors for further approval. The Board of Directors has authorized the Audit Committee to approve any increase not exceeding 10% of the approved fees.

Unit: NT$ thousands

Accounting Firm

Name of CPA

Audit Fee

Non-audit Fee

CPA’s Audit Period

Remark

System
Design

Company
Registration

Human
Resource

Others
(Note 1)

Subtotal

Deloitte & Touche

Yih-Hsin Kao,
Yu-Feng Huang,
and others

57,926

-

-

2,098

84

2,182

01/01/2016-12/31/2016

Note 2

Note 1:

Fees mainly related to accounting research tool.

Note 2:

Article 10.5.1 of Regulation Governing Information to be published in Annual Report of Public Companies was not applicable to TSMC.

CPA’s information

(1) Former CPAs

Date of change

Approved by BOD on November 10, 2015

Reasons and explanation of changes

Due to its internal personal changes, Deloitte & Touche updated the audit partners for TSMC from Yih-Hsin Kao and Hung-Wen Huang to Yih-Hsin Kao and Yu-Feng Huang in 2016.

State whether the appointment is
terminated or rejected by the
consignor or CPAs

Client

Status

CPA

Consignor

Appointment terminated automatically

Not available

Not available

Appointment rejected (discontinued)

Not available

Not available

The opinions other than
unmodified opinion issued in the
last two years and the reasons
for the said opinions (Note)

None

Is there any disagreement in
opinion with the issuer

Yes

 

Accounting principle or practice

 

Disclosure of financial statements

 

Auditing scope or procedures

 

Others

No

V

Explanation

Supplementary Disclosure
(Disclosures Specified in Article
10.6.1.4~7 of the Standards)

None

Note: Starting in 2016, the new auditing standard of the Republic of China requires “An Unqualified Opinion” be replaced by “An Unmodified Opinion”.

(2) Successor CPAs

Accounting firm

Deloitte & Touche

CPA

Yih-Hsin Kao and Yu-Feng Huang

Date of Engagement

Approved by BOD on November 10, 2015

Prior to the Formal Engagement, Any Inquiry or Consultation on the
Accounting Treatment or Accounting Principles for Specific Transactions,
and the Type of Audit Opinion that Might be Rendered on the Financial Report

None

Written Opinions from the Successor CPAs that are Different from the
Former CPA's Opinions

None

(3) The reply of former CPAs on Article 10.6.1 and Article 10.6.2.3 of the standards: None.

TSMC’s Chairman, Directors, Chief Executive Officer, Chief Financial Officer, and managers in charge of its finance and accounting operations did not hold any positions within TSMC’s independent audit firm or its affiliates in the most recent year.

Evaluation of the External Auditor’s Independence

The Audit Committee regularly monitors the independence of TSMC's external auditor by conducting the below evaluations and reports the same to the Board of Directors:

  • The auditor’s independence declaration
  • The Audit Committee pre-approves all audit and non-audit services conducted by the auditor to ensure that the non-audit services do not influence the results of the audit
  • Ensure the audit partner rotates every five years
  • Annually evaluate the independence of the external auditor based on the results of the auditor survey