Internal Audit and Operations
The Audit Office is responsible for understanding and assessing the implementation of the internal control system, measuring operational efficiency, and providing timely improvement recommendations to ensure that the internal control system continues to be implemented effectively, while assisting the Board and management in faithfully discharging their duties.
The Audit Office reports to the Board of Directors. It currently has one staff member, and operates on an independent, dedicated internal-audit basis, conducting routine and ad-hoc operational and financial audits to substantively evaluate the soundness, reasonableness, and effectiveness of compliance with the internal control system.
◎ Promote, establish, amend, and implement the Company’s internal control and internal audit systems.
◎ Establish, amend, and implement the implementation rules for internal audit of the Company and its subsidiaries.
◎ Plan and perform audit work for the Company and its subsidiaries, submit reports for approval, and complete online filings.
◎ Plan, promote, review, improve, and follow up on the Company’s self-assessment activities.
◎ Handle the annual Statement of Internal Control and complete the related online filings.
◎ Evaluate the implementation of, and provide improvement recommendations for, the Company’s various systems, regulations, plans, and policies.
◎ In accordance with the Regulations Governing the Establishment of Internal Control Systems by Public Companies, audit each reinvestment business at least once a year.
◎ Periodically report audit matters to the supervisors and independent directors, and attend Board meetings to make reports.
◎ Perform special internal-control audit assignments directed by the Board or supervisors.
◎ Carry out audit work in accordance with the audit plan, prepare audit reports, and, where deficiencies exist, propose improvement recommendations and follow up on them on an ongoing basis.
◎ The Company prepares an annual audit plan in accordance with the Regulations Governing the Establishment of Internal Control Systems by Public Companies, and carries out the audit cycle during the year so as to evaluate the soundness, reasonableness, and effectiveness of implementation of the Company’s internal control system.
◎ Following the relevant regulations of the competent authorities, the Audit Office audits derivatives transactions on a monthly basis, and audits endorsements/guarantees and lending of funds on a quarterly basis. Audits are performed in accordance with the audit plan approved by the Board, and a self-assessment of the internal control system is conducted annually to enhance the Company’s operating performance. In accordance with the Regulations Governing the Establishment of Internal Control Systems by Public Companies, audit reports are delivered to the supervisors and independent directors by the end of the month following the completion of the report.
◎ The Audit Office completes the following online filings within the prescribed deadlines:
※ By the end of December: file the next year’s “Annual Audit Plan.”
※ By the end of January: file the current year’s “Information of the Chief Internal Auditor, Internal Auditors, and Audit Proxies.”
※ By the end of February: file the prior year’s “Implementation Status of the Annual Audit Plan.”
※ By the end of March: file the prior year’s “Statement of Internal Control.”
※ By the end of May: file the prior year’s “Improvement Status of Internal Control Deficiencies and Abnormalities.”
In November 2020, the Company adopted regulations governing the appointment and removal of internal auditors. Such appointment and removal is handled in accordance with the Rules Governing the Appointment, Dismissal, Performance Evaluation, and Compensation of Internal Auditors.
Internal auditors are evaluated once a year, with the Chief Internal Auditor reporting the evaluation to the Company’s Chairman. The full text of the regulations is disclosed in the Articles & Regulations section of the Company’s website.