The Comparison of Financial Supervising and Auditing System between Taiwan and England, Canada, Japan, Germany,and United States

• Main Authors: Sung Chih-An, 宋治安
• Other Authors: Da-Bai Shen
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/94763257692226615847

碩士 === 東吳大學 === 會計學系 === 91 === At present, due to the difference in the type of financial institutions (public bank, private bank and local agriculture society and cooperative etc.), there is also variance in the financial supervision institution of our country. In addition, as the authority limit of the supervision is not the same as the authority limit of administration sanction, therefore the function of finance supervision cannot be sufficiently and efficiently brought into full play. As a result, it is necessary to integrate the present finance supervision system so that the official duty can conform to the responsibility. In addition, due to the continual change of technology and added with the diversity and complexity of the present finance business, the traditional finance system may not be able to handle the modern finance business. Therefore it is necessary to provide improvement to various supervisory measures or to bring in new form of finance supervision system so as to achieve uniformity of finance supervision and finance inspection. If the following matters can be enhanced, the reform work of the finance supervision can be more complete： 1. Protect the rights and interests of consumers Establish a consolidated institution with special responsibility for consumers to process complaints so as to respond to the trend of congregation of finance service. Facing with different finance consumers, what kind of rights and interests maintenance should be provided would also be the focal point that finance supervision institution should pay attention to. 2. Evaluate the function of finance supervision “Principle of payment by user” has already become the trend of divisional ownership of finance supervision cost. Payee should have the right to request for supervision quality and function. If the special responsibility institution can audit the operation condition and the effect of the finance supervision management fund and can provide supervision companies with related measures like counseling obligation etc., it will enhance the function of the finance supervision of the special responsibility institution. 3. Revision of regulation Finance supervision is the common responsibility of government supervision institution and finance institution, therefore the enhancement of the role of direct supervision by the government in the Banking Law and the self discipline of the finance institution itself should also be clearly stipulated in law. In regard to the financial institutions at a base level, serious consideration should be given to the problem of its existence or abolishment. If there is necessity of existence, then revision on related regulation should be augmented, minimum capital amount shall be increased and there should be capital applicability standard. As a result, the establishment of base level finance institution and operation standard can be progressively advanced to the scale of commercial bank. In addition, the authority limit of supervision and capability of local supervision institution can be enhanced. 4. Revise the system of utilizing talent If professional people with experience can be employed and the on-the-job training and pro-vocational training can be strengthened and if mutual transfer method can be stipulated with other department providing them with more favorable terms, may be superior talents will be willing to stay to participate in the finance management to serve at the finance supervision system. 5. Enhance self supervision of finance supervision “Safety & Stability” is the highest principle of bank operation and is the major official duty of the board of director and high-level management department of the finance institution. An effective monitoring management department is the first and is also the most important defense line to prevent occurrence of potential problem. In addition, it relies on mutual cooperation of the capability of audit personnel, independency of audit, appropriateness of audit policy and effectiveness of audit plan etc. 6. Supervision by risk Risk management is not only just an important point of concern by bank operation, it is also the new direction to manage the finance supervision by finance inspector. Therefore, the finance institution should respond to this with a more cautious and stringent attitude by requesting finance institution to establish business operation policy, to strengthen internal operation standard, to establish management information system and to include risk control in the information. In addition, special risk management unit should be established. 7. Enhance company governance standard and improve financial performance Although for some banks, their problem is due to improper internal control or fraudulent behavior, yet what is concealed at the back of the bank crisis is a more serious enterprise problem. If the debtor enterprise cannot be restructured at the same time, the finance reform will be in vain. However, if enterprise can systemize or enhance company governance and morale standard, it can establish and enhance asset quality. If investors have no confidence on the transparency of the market and enterprise responsibility, the market cannot bring the maximum efficiency into full play. 8. Only with a determined reform action and cost reduction, a rapid economic recovery can be stimulated Enterprise and financial group should be strongly restructured and bank with serious and improper operation should be urged to withdraw from the market so that this malignant tumor can be eliminated. The transparency of the finance and operation of enterprise should be improved and the self-owned capital percentage should be increased. Enterprises are requested to focus on their core business and to reduce diversified operation. In addition, the supervision authority and the responsibility of large shareholders and operators of enterprise should be enhanced. Especially when the government is driving reform again, the government should manifest its decision and decisiveness to eliminate all barriers and to conduct its implementation thoroughly and this is the most important key for the success of reform. 9. Government support should be sufficient to root out problem and to re-establish the confidence of the market When the government is putting in capital, it should not be utilized to mitigate the difficulty of shareholder solely as it is necessary to supervise the reform result of the operation level. The purpose of mitigation of difficulty is to allow the loss apportionment to be transparent and to reduce the burden of taxpayer and to provide a tempting factor of capital investment from the private sector. 10. Full cooperation by disregarding what the political party is will be the most key factor of success in finance reform When blocking the reform due to the selfishness of one political party, it will bring more disaster to people. Various political parties should group their strength together to solve problem. 11. Speed up connection with international standard Active participation in international finance organization so as to master the new trend of international finance supervision. Accelerate the speed of training finance supervision talents and establish good finance supervision structure in order to meet the challenge brought by frequent changes of the finance market.