Internal Audit Organization and Operations
Internal Audit Organization
China Life Insurance has set up an internal audit unit that is directly subsidiary to the Board of Directors and is led by the Chief Auditor and staffed with an appropriate number of competent full-time internal auditors based on the scale of investment, business condition, management needs and applicable laws and regulations. According to the company’s Corporate Governance Best Practice Principles, the appointment, dismissal, evaluation and review, salary and compensation of internal auditors are submitted by the Chief Auditor to the board chairman for approval.
Internal Audit Operations
The purpose of internal audit is to assist the Board of Directors and the managerial level to verify and evaluate whether the operation of internal control system works effectively and provide appropriate suggestions for revision, which can ensure the on-going performance of effective internal control and serve as the basis of internal control system revisions.
1. Conducting annual audits
The company’s annual audit plan, based on the consideration of Regulations Governing the Implementation of Internal Control and Audit System of Insurance Industries, relevant provisions of acts and business risk, shall be delivered to Audit Committee for review and the Board of Directors for approval. The Internal Audit conducts at least a routine audit every year on its business, finance, information and other management units, and conducts special audits as needed. The Chief Auditor regularly reports audit business to the Board of Directors and the Audit Committee.
2. Monitoring the improvement of deficiency
The Internal Audit shall follow up on the status of improvements made by respective units regarding the examination opinions of or deficiencies found by competent authority, accountants, internal audit units (including the internal audit unit of the parent financial holding company) and self-check personnel, and recommendations enumerated in the statement on internal control, and produce a written follow-up report to be provided to the Board of Directors and the supervisors or the Audit Committee for review.