Auditing System

Fubon Financial Holdings has developed a chief auditorsystem based on the “Implementation Rules ofInternal Audit and Internal Control System ofFinancial Holding Companies and BankingIndustries.” A key component of the system isthe Audit Division set up under the board ofdirectors, which helps the board and topmanagement check and assess theeffectiveness of internal control systems. It alsooffers suggestions for improvements toreasonably ensure that such systems continueto function well.

The Audit Division independently audits theFubon Financial Holdings company and itssubsidiaries based on annual audit plans andoverseesthe self-audits of its individual units.It also periodically re-examines internal andexternal audit findings and regularly reports onits efforts to the Audit Committee and the boardof directors.

In 2014, many units made necessaryimprovements to flaws uncovered by auditswithin designated deadlines. Those that didnot will be monitored within specified timeperiod until the required improvements arecompleted. This process has benefited thegeneral and organizational operations andsystem development of Fubon FinancialHoldings and its subsidiaries.