The company's auditing department is overseen by the board of directors and has oversight of auditing company-wide. The department is led by a general auditor, and in addition there is one deputy general auditor and other auditing personnel. The head auditor evaluates overall business needs in accordance with Yuanta Financial Holding Company's Internal Auditing Procedures and directs staff from each subsidiary in handling internal auditing functions for their respective subsidiary, ensuring that the company and each subsidiary maintains an effective auditing system which holds ultimate responsibility.

The qualifications of internal auditing personnel must be in compliance with regulations set forth in Regulations Governing the Implementation of Internal Control and Audit Systems by Financial Holding Companies. To raise their level of proficiency, each year auditing personnel are to participate in finance-related training courses arranged by an institution appointed by the government authority or classes arranged internally by the company or subsidiaries.

The company's auditing department has established guidelines entitled Yuanta Financial Holding Company's Internal Auditing Implementation Methods. These methods evaluate overall policies, auditing department structure and the qualifications of internal auditing personnel, chain of command, and track any deficiencies and relevant improvements with supplementary provisions. The established internal control system allows for close evaluation of the degree of effectiveness of implementation of the internal auditing function.

At the end of each year, the auditing department drafts an annual auditing plan for the following year, and according to its policies conducts a comprehensive business operations audit and least once a year. Additionally, a special audit is carried out on the financial standing, risk management and legal compliance of the company and each subsidiary each half year. The comprehensive operations audit that evaluates each area of business should contain an audit report that covers the following::

1. Auditing scope, overall assessment, financial status, capital adequacy, operational performance, asset quality, equity management, operational management of the board, legal compliance, internal control, transactions with affiliated parties, control and internal management of each business operation, management of confidential customer data, data management, training employees in confidentiality matters, the status of the measures being used in the protection of consumer and investor rights, and self evaluation methods.
2. Items recommended for review or audit listed by the relevant financial authorities and by the auditing department, or those listed in the Statement of Internal Control System may at time prove to be inadequate. In these cases, the appropriate changes are made to strengthen the concerned items or make up for any deficiencies.
3. Financial inspection organizations, accountants, internal auditing divisions, opinions raised by internal self-auditing, and the status of items mentioned in the internal control statement that are identified for improvement.

The auditing department tracks and re-examines any items aimed at strengthening any deficiencies in auditing functions of the financial review division, accountants, and Internal Auditing Department. A report is submitted to the board of directors and audit committee with the main items for continued review listed.

To ensure ongoing effectiveness of each subsidiary's internal control and auditing system, and to strengthen each subsidiary's internal auditing capabilities, the company has established Yuanta Financial Holding Company's Key Assessment Items in Affiliated Companies' Internal Auditing. Each year, the head auditor is to report to the board of directors the results of their performance review of each subsidiary's internal auditing performance, and the results are to be sent to the board of directors of each subsidiary, for them to assess any necessary changes in personnel.

The company has implemented Yuanta Financial Holding Company's Internal Control Self-Evaluation Procedures. The auditing department is responsible for overseeing the company's and subsidiaries periodic self-evaluation of the internal control system, and compiling the results. The company's legal department is responsible for ensuring compliance with all laws regarding the company's self-evaluation. Together, the two departments mutually collaborate on the company's Statement of Internal Control System.