台新金控

Organization of Internal Audit

• The Audit Division is directly subsidiary to the Board of Directors, which including one chief auditor and several auditors to manage and perform audits of Taishin FHC and its subsidiaries.
• The chief auditor is allowed to, if necessary, dispatch internal auditors of any subsidiary to conduct audits on Taishin FHC or its subsidiary companies.
• According to “Internal Audit System” ,the personnel matters of the Audit Division, including appointment, dismissal, promotion, reward/discipline, rotation, performance appraisal and remuneration, will become effective upon being reported by the chief auditor to the Chairman of the Board.

• The planning and execution of annual audit plan：

The Audit Division conducts a general audit at least once per year. It also completes thematic audits of the financial holding company and subsidiaries at least once every six months, with the scope of the finance, risk management, and compliance with applicable laws and regulations. All internal audit reports are delivered to the Audit Committee for review and, within two months at the end of the audit period, are submitted to the competent authority.

• Report to the board of directors and audit committee：
  • Audit summary report is reported to the Audit Committee and the Board of Directors on a regular basis.
  • A meeting is held by the chief auditor with the Audit Committee, consisted of all independent directors, regularly. Meeting minutes will be submitted to the Board for review.

• Supervision of self-inspection for internal control system

The Audit Division supervises the establishment and implementation of the internal control self-inspection process/procedure and reviews the self-inspection report of each department/subsidiary.

• Making suggestions on business and operation guidelines 

The Audit Division makes suggestions on the formulation and revision of business and operation guidelines/rules.

• Management over subsidiaries      

The Audit Division reviews audit documents submitted by the subsidiaries, such as annual audit plan, the significant deficiencies identified in internal audit reports with the improvement action plans thereof, CPA audit reports, and examination reports issued by the financial examination authority. The Audit Division will then monitor the implementation of improvements.

• Performance appraisal of the subsidiaries’ auditor division

The performance of all the subsidiaries’ auditor division shall be evaluated by the Audit Division periodically. The summary of the performance appraisal is reported to the Board of Directors, and will be sent to each subsidiary's Board of Directors as a reference for the overall performance appraisal of its audit division.

• Follow-up and monitoring of audit deficiencies

Continual follow-up reviews on any audit deficiencies brought up by the financial examination authority, internal audit, and on matters specified in the internal control system statement as requiring stronger improvement efforts.

• Reporting and notification

To file with the competent authority the following information in accordance with the regulations:

• The information on the name and years of service of the internal auditors
• The company's audit plan and the status of its execution
• Statement of Internal Control System
• Audit findings regarding weaknesses in the internal control system and progress of subsequent improvements
• Notification of significant incidents