Internal Audit and Operations
The Audit Office is responsible for understanding and evaluating the implementation of the internal control system, measuring operating efficiency, and providing timely improvement recommendations to ensure the system continues to operate effectively, and to help the Board and management fulfill their responsibilities. The Audit Office reports to the Board with one staff member, performing independent, dedicated internal audits — periodic and ad-hoc business and financial audits — to evaluate the soundness, reasonableness and effectiveness of the internal control system.
◎ Promoting, drafting, amending and executing the Company’s internal control and internal audit systems.
◎ Establishing, revising and executing internal-audit detailed rules for the Company and subsidiaries.
◎ Planning, executing, reporting and online filing of audit activities for the Company and subsidiaries.
◎ Planning, executing, reviewing, improving and following up the Company’s self-assessment activities.
◎ Handling and online filing of the Company’s annual Statement on Internal Controls.
◎ Evaluating and recommending improvements based on the execution of established systems, charters, plans and policies.
◎ Auditing investee companies at least once per year per the Regulations Governing Establishment of Internal Control Systems by Public Companies.
◎ Reporting audit activities periodically to supervisors and independent directors, and attending Board meetings to report.
◎ Special internal-control audits as instructed by the Board or supervisors.
◎ Executing audits per the audit plan, producing audit reports, recommending improvements for any deficiencies, and following up continuously.
◎ The Company prepares its annual audit plan per the Regulations Governing Establishment of Internal Control Systems by Public Companies and executes audit-cycle activities during the year to evaluate the soundness, reasonableness and effectiveness of the internal control system.
◎ Per the regulator’s requirements, the Audit Office monthly audits derivatives trading, quarterly audits endorsements/guarantees and loans, executes audits per the Board-approved plan, and runs the annual self-assessment of the internal control system to improve performance. Per the same Regulations, audit reports are delivered to supervisors and independent directors by the end of the month following report completion.
◎ The Audit Office completes the following online filings within prescribed deadlines:
※ Annual Audit Plan for next year by end of December.
※ Information on Chief Auditor, Auditors and Deputy Auditors for current year by end of January.
※ Execution of Annual Audit Plan for prior year by end of February.
※ Statement on Internal Controls for prior year by end of March.
※ Improvement of Internal Control Deficiencies/Anomalies for prior year by end of May.
The Company adopted its internal-auditor appointment/dismissal rules in November 2020. Appointments and dismissals follow the “Procedures for Appointment, Evaluation and Compensation of Internal Auditors.”
Internal auditor evaluations are conducted once a year, signed off by the Chief Auditor and reported to the Chairman. The full rules are disclosed in the Corporate Charters section of the Company.