| 2007.09.06 |
Articles 27 and 33 of the “Regulations Governing the Implementation of Internal Control and Audit Systems by Bills Houses”
[Chinese]
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Articles 27 and 33 of the
“Regulations Governing the Implementation of Internal Control and Audit Systems by Bills Houses”
Article 27 When a bills finance company 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 bills finance company’s internal control system, regulatory compliance system, and the appropriateness of bills finance company’s bad debt reserve policy.
The accountant’s audit fees will be at the expense of the bills finance company as agreed between the bills finance company and the accountant.
Paragraph 1 does not apply to a bills finance company which is taken over by the competent authority pursuant to laws.
Article 33 The general manager of a bills finance company shall oversee respective units to carefully evaluate and review their implementation of the internal control system. The bills finance company’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 (the attached form), which, subsequent to the approval of the board of directors, shall be disclosed on the company’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, the public offering prospectus and the company prospectus as required by laws.
Paragraph 1 does not apply to a bill finance company which is taken over by the competent authority pursuant to laws.