Regulations Governing Establishment of Internal Control Systems by Public Companies Article 7
The internal control systems of a public company shall cover all its operational activities and comply with the laws and regulations governing the industry to which the company belongs, and control activities shall be prescribed for the cycles listed below, classified by operating cycles according to the characteristics of the industry to which the enterprise belongs:1. Sale and receipt cycle: This cycle includes policies and procedures such as for processing customer orders, credit management, delivery of goods or provision of services, issuance of sales invoices, issuance of bills, recording of revenues and accounts receivable, sales allowances and returns, customer complaints, destruction of products, and execution and recording of receipts of negotiable instruments and cash payments.2. Purchase and payment cycle: This cycle includes policies and procedures such as for managing suppliers; managing contractors; requisitioning, comparing or negotiating prices; contracting; purchasing or procuring goods, materials, supplies, assets, and services; processing purchase lists; accepting goods; quality inspection; preparing inspection reports or returning goods; recording suppliers’ liabilities; approving payments; purchase allowances; and execution and recording of negotiable instruments handed over and cash payments.3. Production cycle: This cycle includes policies and procedures such as for managing environment safety; managing occupational safety and health; production scheduling; creating bills of materials; storing materials and supplies; requisitioning materials; putting materials into production; managing process safety; controlling the quality of finished goods; managing scrap and refuse; product composition labeling; calculating inventory and production costs, and calculating sales costs.4. Labor and wage cycle: This cycle includes policies and procedures such as for hiring, job rotation, leave-taking, shift planning, overtime work, dismissal, training, retirement, determining wage rates, calculating working time, calculating salaries and benefits, calculating payroll taxes and withholdings, creating payroll records, salary payment, and review of attendance and performance.5. Finance cycle: This cycle includes policies and procedures such as for authorization, execution, and record-keeping with regard to finance and financing matters such as borrowing of funds, granting of guarantees, acceptance of checks, renting/leasing, and issuance of corporate bonds and/or other securities.6. Property, plant and equipment cycle: This cycle includes policies and procedures such as for acquisition, disposition, maintenance, safeguarding, and recording of property, plant and equipment.7. Investment cycle: This cycle includes policies and procedures such as for decision-making, trading, safekeeping, and recording with respect to securities, investment property, derivatives, and other investments.8. Research and development (R&D) cycle: This cycle includes policies and procedures such as for fundamental research, product design, technology development, prototype manufacturing and product testing, recording of R&D operations, safekeeping of documents, and acquisition, maintenance, and utilization of intellectual property.A public company may tailor its control activities to meet the needs of its actual business activities according to the characteristics of the industry to which the enterprise belongs.
中文原文 公開發行公司建立內部控制制度處理準則第7條
公開發行公司之內部控制制度應涵蓋所有營運活動，遵循所屬產業法令，並應依企業所屬產業特性以營運循環類型區分，訂定對下列循環之控制作業：
一、銷售及收款循環：包括訂單處理、授信管理、運送貨品或提供勞務、開立銷貨發票、開出帳單、記錄收入及應收帳款、銷貨折讓及銷貨退回、客訴、產品銷毀、執行與記錄票據收受及現金收入等之政策及程序。
二、採購及付款循環：包括供應商管理、代工廠商管理、請購、比議價、發包、進貨或採購原料、物料、資產和勞務、處理採購單、經收貨品、檢驗品質、填寫驗收報告書或處理退貨、記錄供應商負債、核准付款、進貨折讓、執行與記錄票據交付及現金付款等之政策及程序。
三、生產循環：包括環境安全管理、職業安全衛生管理、擬訂生產計畫、開立用料清單、儲存材料、領料、投入生產、製程安全控管、製成品品質管制、下腳及廢棄物管理、產品成分標示、計算存貨生產成本、計算銷貨成本等之政策及程序。
四、薪工循環：包括僱用、職務輪調、請假、排班、加班、辭退、訓練、退休、決定薪資率、計時、計算薪津總額、計算薪資稅及各項代扣款、設置薪資紀錄、支付薪資、考勤及考核等之政策及程序。
五、融資循環：包括借款、保證、承兌、租賃、發行公司債及其他有價證券等資金融通事項之授權、執行與記錄等之政策及程序。
六、不動產、廠房及設備循環：包括不動產、廠房及設備之取得、處分、維護、保管與記錄等之政策及程序。
七、投資循環：包括有價證券、投資性不動產、衍生性商品及其他投資之決策、買賣、保管與記錄等之政策及程序。
八、研發循環：包括對基礎研究、產品設計、技術研發、產品試作與測試、研發記錄與文件保管、智慧財產權之取得、維護及運用等之政策及程序。
公開發行公司得視企業所屬產業特性，依實際營運活動自行調整必要之控制作業。
一、銷售及收款循環：包括訂單處理、授信管理、運送貨品或提供勞務、開立銷貨發票、開出帳單、記錄收入及應收帳款、銷貨折讓及銷貨退回、客訴、產品銷毀、執行與記錄票據收受及現金收入等之政策及程序。
二、採購及付款循環：包括供應商管理、代工廠商管理、請購、比議價、發包、進貨或採購原料、物料、資產和勞務、處理採購單、經收貨品、檢驗品質、填寫驗收報告書或處理退貨、記錄供應商負債、核准付款、進貨折讓、執行與記錄票據交付及現金付款等之政策及程序。
三、生產循環：包括環境安全管理、職業安全衛生管理、擬訂生產計畫、開立用料清單、儲存材料、領料、投入生產、製程安全控管、製成品品質管制、下腳及廢棄物管理、產品成分標示、計算存貨生產成本、計算銷貨成本等之政策及程序。
四、薪工循環：包括僱用、職務輪調、請假、排班、加班、辭退、訓練、退休、決定薪資率、計時、計算薪津總額、計算薪資稅及各項代扣款、設置薪資紀錄、支付薪資、考勤及考核等之政策及程序。
五、融資循環：包括借款、保證、承兌、租賃、發行公司債及其他有價證券等資金融通事項之授權、執行與記錄等之政策及程序。
六、不動產、廠房及設備循環：包括不動產、廠房及設備之取得、處分、維護、保管與記錄等之政策及程序。
七、投資循環：包括有價證券、投資性不動產、衍生性商品及其他投資之決策、買賣、保管與記錄等之政策及程序。
八、研發循環：包括對基礎研究、產品設計、技術研發、產品試作與測試、研發記錄與文件保管、智慧財產權之取得、維護及運用等之政策及程序。
公開發行公司得視企業所屬產業特性，依實際營運活動自行調整必要之控制作業。