Internal Auditing Operations
- The Internal Auditing Department shall conduct general audits on Cathay Financial Holdings at least once a year. Target audits on Cathay Financial Holdings and subsidiary company corporate finance, risk management, and compliance with laws and regulations shall be conducted at least once every six months. Internal auditing reports shall be submitted upon completion of audits.
- The Internal Auditing Department shall report regularly to the Audit Committee and Board of Directors on the following issues: auditing performance; oversights disclosed by financial examination institutions, accountants, and internal auditors; and rectification of assessed deficiencies and weaknesses listed in the Statement of Internal Control.
- Internal control self-assessments shall be conducted at least once a year, the auditing department shall review the self-assessment reports submitted by individual departments. Self-assessment reports and improvement reports of internal control deficiencies and abnormalities discovered through internal auditing shall be the basis for evaluations on internal control efficacy and the issuance of the Statement of Internal Control by the Board of Directors, General Manager, Chief Auditor, and Compliance Officer. Upon approval of the contents of the Statement of Internal Control by the Board of Directors no later than three months after the end of each accounting year, the Statement shall be disclosed on the Cathay Financial Holdings corporate website、annual report and submitted for online proclamation as stipulated by competent authorities.
- The Internal Auditing Department shall conduct periodic assessments of subsidiary company internal audit performances. Assessment results shall be submitted to subsidiary company Board of Directors as the basis for employee performance appraisal.
- The Internal Auditing Department shall review information submitted by subsidiary companies including auditing plans, improvement reports on material weaknesses in internal control, accounting assessment reports, and financial examination institution reports, as well as provide supervision to subsidiary companies for the improvement of deficiencies and weaknesses.
- The Internal Auditing Department shall continue to track and review rectifications in deficiencies and weaknesses disclosed by financial examination institutions, accountants, internal auditing units, and as listed in the Statement of Internal Control.