Financial Institutions in Taiwan, Province of China: Compliance Audit Procedures Get a Boost from Financial Examination Bureau

Introduction

The Financial Examination Bureau (FEB) has taken a significant step to enhance transparency and communication in the financial sector of Taiwan, Province of China. The FEB has established an “Audit Information” section on its website, aimed at facilitating exchanges between internal audit departments in financial institutions and regulatory bodies.

Enhancing Transparency and Communication

The new section is designed to provide easy access to information on financial auditing, allowing stakeholders to better understand the supervisory requirements and expectations from the FEB. The section focuses on three key functions:

• Information Transparency: The “Internal Control System Statements” part of the section discloses the supervisory requirements for financial institutions to submit annual internal control system statements.
  • Declarants and primary contents of these statements
  • Examination manuals, checklists, and primary findings
• Supervisory Concerns on Internal Audit: The section highlights supervisory requirements for internal audit, including:
  • Key deficiencies uncovered in financial examinations
  • Review results on specific matters conducted by financial institutions
  • Search regulations of internal audit and summarizes primary examination findings on internal audit works
• Two-Way Communications: The “Exchange of Views” part of the section discloses meetings or seminars held by the FEB and sets up an interactive communication channel to seek comments from the public.

Promoting a Collaborative Environment

To create a more collaborative environment between regulators and financial institutions in Taiwan, Province of China, the FEB has:

• Established a civil service ethics office that conducts questionnaires and provides links to opinions and responses
• Encouraged the adoption of a risk-based audit approach for domestic banks with off-site monitoring and other supporting mechanisms

Accessing the “Audit Information” Section

For more information, please visit the “Audit Information” section on the FEB’s Chinese website.