• Internal Audit

    Internal Audit Organization Structure

    • CTBC Financial Holding Co., Ltd. (CTBC Holding) sets up the internal audit unit that is directly subsidiary to the board of directors, and establishes the general auditor system to manage all audit business in a detached, independent, objective, and impartial manner, and to report audit business to the board of directors and audit committee at a minimum period of every six months.
    • The general auditor, the audit officer and auditors are appointed to supervise and execute audit business within CTBC Holding and its subsidiaries.

    Internal Audit Function

    • The internal audit unit shall conduct a routine business audit on CTBC Holding at least annually, and target audits on its and all its subsidiaries' finance, risk management, and compliance with applicable acts and regulations at least semiannually. The internal audit report shall be delivered to the audit committee for review and, within two months following completion of the audit, submitted to the competent authority by letter.

    • The internal audit unit shall disclose at least the following information in its internal audit report for routine business audit on CTBC Holding:

      1. Audit scope; summary commentary; financial status; capital adequacy; operation performance; asset quality; management of shares; management of the operation of board of directors; compliance with major acts, regulations, and rules; internal controls; interested party transactions; the control and internal management of all business tasks; protection and management of customers' data; information management; management of customer data confidentiality; protection measures of consumers and investors and the results of self-inspection, and the evaluation to above matters.

      2. Opinions for the major illegal errors or faults in all departments, and the suggestions for punishment for employees fail to fulfill their duties.

      3. The examination comments or faults listed by the financial examination agency, accountants, internal audit unit, and self-inspection people, and the improvement status of items that enlisted as 'need further improvement' by the internal control statement.

    • The internal audit unit shall continually conduct follow-up reviews on any examination opinions or audit deficiencies brought up by the financial examination authority, CPA, or internal audit unit, and on matters specified in the internal control system statement as requiring stronger improvement efforts, and submit a written report on the implementation of improvement of deficiencies to the board of directors, together with a copy to the audit committee, and list these as an important factor in the relevant department's performance evaluations.

    • The internal audit unit shall periodically review the documents submitted from CTBC Holding’s subsidiaries, such as board meeting minutes, CPA audit reports, examination reports issued by the financial examination agency, and other relevant materials, and, for subsidiaries having established an internal audit unit, audit plans and reports on significant deficiencies identified in internal audit reports and the status of improvements thereof; and monitor the implementation of improvements by each subsidiary.

    • CTBC Holding general auditor is allowed to, if required by business, dispatch the internal auditors of any CTBC Holding’s subsidiaries to conduct the internal audit task on CTBC Holding or its subsidiary company, and shall evaluate the efficacy of the internal audit activities of a subsidiary annually, and, after having reported to the board of directors, send the evaluation results to the relevant subsidiary's board of directors for their reference in personnel evaluations.

    • The internal audit unit shall see to it that all of CTBC Holding’s internal departments and subsidiaries carry out self-inspection, and review the self-inspection reports of internal control system; such self-inspection, together with the reports on the correction of any deficiencies and irregularities discovered in the internal control system by the internal audit unit, shall serve as a basis for the board of directors, general manager, general auditor and compliance officer to evaluate the overall efficacy of the internal control system and to issue internal control system statements.

    • Other important audit activities includes:

      1. Participating in the setting up of CTBC Holding’s policies and procedures, and assessing the effectiveness of the internal control system.

      2. Actively proposing recommendations to the changes of audit-relevant regulations.

      3. Actively participating in domestic and international audit-relevant business seminars in order to gain advanced audit concepts and techniques for further development and application.

      4. Continuing to improve audit programs, workflows and skills, and actively developing Computer-Assisted Audit Tools (CAATs) to enhance the effectiveness of audit work.

      5. Continuing to strengthen auditor's skills based on the classification of respective audit functions and give assignments in accordance with individual specialties.

  • Internal Control Statement