| 2007.09.06 |
Articles 25 and 32 of the “Implementation Rules for Bank Internal Audit and Internal Control System”
[Chinese]
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Articles 25 and 32 of the
“Implementation Rules for Bank Internal Audit and Internal Control System”
Article 25 When a bank engages an accountant to audit its annual financial statements, it shall also ask the same accountant to audit its internal control system and express opinion regarding the accuracy of information provided in the financial statements as well as the implementation of the bank’s internal control system, regulatory compliance system, and the appropriateness of bank’s bad debt reserve policy.
The accountant’s audit fees will be at the expense of the bank as agreed between the bank and the accountant.
Paragraph 1 does not apply to a bank which is taken over by the competent authority pursuant to laws.
Article 32 The general manager of a bank shall evaluate carefully and review the enforcement of the internal control system. The bank’s chairman, together with the general manager, the chief auditor, and the chief compliance officer of the head office, shall jointly sign and issue an internal control statement (see attached form), which, subsequent to the approval of the board of directors, shall be disclosed on the bank’s website and filed with the competent authority through a designated website in four months after the end of each fiscal year.
The internal control statement in the foregoing paragraph shall be published in the annual report, the public offering prospectus and the company prospectus as required by laws.
Paragraph 1 does not apply to a bank which is taken over by the competent authority pursuant to laws.