Internal Audit (Board of Auditors)

The Board’s fundamental objective is to provide independent and impartial compliance and consultancy services that safeguard the activities of the Bank and its affiliates subject to consolidation and generate added value. Operating within currently applicable laws and related external regulatory frameworks, and the Bank’s own strategies, policies, principles and targets, the Board provides assurance to the Senior Management concerning the effective and sufficiency of the Bank’s internal control, risk management systems and governance processes. The Board aims to help the Bank reach its targets by introducing a systemic and disciplined approach in order to evaluate and improve related systems. The Board of Auditors is responsible for performing audits, inspections and investigations on behalf of the Board of Directors in line with the schedule and instructions provided by the Chairman.

Within the scope of the 2017 audit plan, audit activities were conducted in various selected branches and units in the Head Office based on the risk-oriented audit approach. In addition, audits into the information systems were maintained by IS inspectors. With these audit activities, investigations and inspections regarding the board’s declaration were conducted.

As a result of the audit activities, incomplete and improper applications are reported to the Audit Committee on a quarterly basis, and their completion statuses are monitored.

Detailed training programs were prepared to increase the level of knowledge of inspectors as well as raising their personal development to the highest level. Accordingly, internal and external training was provided.

As of 31 December 2017, the staff of the Board of Auditors comprised of 35 persons.

Internal Control

The Internal Control Department is responsible for overseeing all aspects of Türkiye Finans’ organization and activities, to ensure that the Bank’s business is conducted effectively, productively, and in a manner consistent with the requirements of the Banking Law and regulations, the Bank’s own policies and rules, and ordinary banking practices; and also for ensuring the reliability, integrity, and timely accessibility of the accounting and financial reporting systems and of the information contained therein. The Internal Control Department reports directly to the Board of Directors and provides information to the Bank’s senior management. Another function of the Internal Control Department is to develop early warning systems capable of identifying risks in advance and taking measures accordingly.

The Internal Control Department conducts its activities through four main activity areas: Head Office Control, Branches Control, Information Systems and Compliance Checks, and Reporting, Quality and Inquiry Development.

Risk oriented control activities were conducted in the branches within the scope of the 2017 control plan. At the same time, control design and test activities, as well as inquiry investigations including checks within the scope of board’s declaration were conducted in the units of the Head Office.

Any incomplete and improper applications found during the course of the control activities are reported to the Audit Committee on a quarterly basis and their completion statuses are followed.

Detailed training programs were prepared to increase the level of knowledge of the internal control personnel, as well as raising their personal development to the highest level. Internal and external training was provided accordingly.

As of 31 December 2017, the staff of the Internal Control Department consisted of 31 persons.