The Board of Auditors

The Board of Auditors is responsible for the execution of internal audit activities, which is an independent, objective assurance and consulting activity designed to add value and improve Finansbank's operations. It helps Finansbank accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes.

The Finansbank Board of Auditors operates under the Turkish Banking Law and within the scope of the banking regulations as well as acting in accordance with the authorization it has received from the Board of Directors. Its main functions are as follows:

• To audit the partner companies in which Finansbank has the majority shareholdings,
  
  
• To audit the Bank's Head Office units and branches,
  
  
• To conduct the following types of internal audit activities: Financial Audit, Compliance Audit, Management and Performance Audit, Systems and Process Audit, Information Technology Audit,
  
  
• To investigate and determine the parties responsible for fraudulent activities and various discrepancies,
  
  
• To evaluate the efficiency and effectiveness of risk management, internal control and management systems so that banking transactions may be carried out accurately.

The Board of Auditors consists of a President, a Vice-President, and a sufficient number of auditors and administrative staff. The Board of Auditors reports directly to the Board of Directors.

Attaining membership to the Board of Auditors is a task that is rather unique and requires certain characteristic features. Members fulfill the internal audit activities in accordance with the standards and ethical codes set by the International Institute of Internal Auditors. According to these rules, internal audit activity should be carried out in strict accordance with principles like independence, impartiality, objectivity, honesty, confidentiality and due professional care.

Those with the required capabilities and educational background are selected as assistant auditors for the Board of Auditors. As soon as they begin working at the Bank, the assistant auditors undergo a basic job-training program. Afterwards, in order to further develop their skill sets and "know how" on auditing procedures, inquiry and investigation methods, they begin working with the audit teams. Almost all of the members working at every level are constantly supported by upgraded training programs. However, the Board of Auditors is deeply committed to the belief that "on the job training" is the most important element in a person's career development. As a priority, the auditors are responsible for the professional development of the assistant auditors who work with them. The period served as an "assistant auditor" is at least 4 years. At the end of this period, the assistant auditors who have performed successfully take a proficiency exam and those who pass are promoted to the title of "auditor".

The members of the Board of Auditors reside continuously in Istanbul. Generally, they work in Istanbul during the first half of the year, and throughout the second half of the year, they work in other cities. Due to legal responsibilities Auditors may take duties in subsidiary audits abroad. Regarding the importance of training, Auditors may be sent abroad for education with the purpose of adding value to Auditors and increasing the ultimate utility to the Bank. The Auditors may also carry out various studies abroad in terms of sector analysis and certain research topics accepted and approved by the Board of Directors.

Along with its auditing role, the main function of the Board of Auditors is to provide the Bank with highly qualified and skilled managers. The senior auditors in the Board may be appointed to the management staff of various units of the bank with the approval of the President of the Board of Auditors. By adopting a banking philosophy of "Whatever the financial agenda is worldwide, this also applies to Finansbank", the Board of Auditors will continue to act as a driving force for Finansbank's future achievements by employing modern audit methods and state-of-the-art technology and equipment.