| 2007.09.06 |
Articles 26 and 32 of the “Implementation Rules for Credit Cooperative’s Internal Control and Internal Audit System”
[Chinese]
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Articles 26 and 32 of the
“Implementation Rules for Credit Cooperative’s Internal Control and Internal Audit System”
Article 26 When a credit cooperative 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 credit cooperative’s internal control system, regulatory compliance system, and the appropriateness of credit cooperative’s bad debt reserve policy.
The accountant’s audit fees will be at the expense of the credit cooperative as agreed between the credit cooperative and the accountant.
Paragraph 1 does not apply to a credit cooperative which is taken over by the competent authority pursuant to laws.
Article 32 The general manager of a credit cooperative shall oversee respective units to carefully evaluate and review their implementation of the internal control system. The credit cooperative’s president, 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 (attached form), which, subsequent to the approval of the board of directors, shall be filed with the Department of Finance of the municipal government or the county (city) government, disclosed on the cooperative’s website and filed with the central 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 as required.
Paragraph 1 does not apply to a credit cooperative which is taken over by the competent authority pursuant to laws.