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Audits by Accountants: Credit Cooperatives Must Comply with New Regulations
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Taipei, Taiwan - The Ministry of Finance has introduced new regulations governing audits by accountants for credit cooperatives. These new rules aim to ensure that these financial institutions maintain transparency and accountability in their financial reporting.
Audit Requirements
Credit cooperatives must engage an accountant to audit their annual financial statements, as well as their internal control system. The accountant’s fees will be borne by the credit cooperative, as agreed upon between the two parties.
The accountant’s report must include:
- An opinion on the accuracy of information provided in the financial statements
- An assessment of the implementation of the credit cooperative’s internal control system, regulatory compliance system, and bad debt reserve policy
Consequences of Non-Compliance
In the event of any irregularities or discrepancies during the audit process, the accountant must immediately inform the competent authority. Failure to comply with the regulations may result in disciplinary action against relevant personnel.
Audit Tracking
The Ministry of Finance has also introduced measures to track audit activities at credit cooperatives. The internal audit unit must:
- Continuously follow up on examination opinions and deficiencies found by financial examiners, accountants, internal auditors, or business units
- Report the status of improvement actions taken to the board of directors and supervisors
Filing Requirements
Credit cooperatives are required to file their:
- Internal control statements with the Department of Finance
- Disclosure on their website
- Submission to the central competent authority through a designated website
The internal audit report must be filed with the Department of Finance and the central competent authority within two months after the end of each fiscal year.
Additionally, credit cooperatives must file their:
- Data on internal auditors by January 31st every year
- Audit plans for the following year before the end of each fiscal year
- Report on the implementation status of the previous year’s audit plan within two months after the end of each fiscal year
Notification Requirements
Credit cooperatives must report any suggestions regarding material deficiencies or violation in internal control to:
- Supervisors
- Department of Finance
- Central competent authority immediately