Internal Audit and Control

O-Bank’s Audit Department reports directly to the Board, and carries out its auditing duties in an independent manner to ensure the effective operation of internal controls. A Chief Auditor is responsible for the supervision and overall management of audit operations, and does not hold any position that conflicts with, or restricts, his/her auditing duties.

The frequency of on-site examinations of operating units responsible for operations, finance, asset custody, information technology, as well as of the Hong Kong branch, EverTrust Bank, and other subsidiaries, is based on the “Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries”, and is incorporated into the annual audit plan. The Department also reports to the Board and Audit Committee on audit operations semi-annually. In addition, the Board holds a forum with auditors every half a year to review audit findings in internal controls. Meeting minutes are provided to the Board and senior managers to understand the status of internal controls. In addition to regular examinations by the Audit Department and regular inspections by financial regulatory authorities, each operating unit responsible for operations, finance, asset custody, and information technology, as well as the Hong Kong branch and others, is required to prepare and submit monthly self-inspection reports, an audit of one specific function, and one full-scope self-inspection every six months.