| Chapter 3 The inspection of internal control system |
Section 2 The Examination of self-inspection and Statement for Internal Control System |
| Article 25 |
The banking business should establish a self-inspection system. The bank shall conduct a self-inspection on all business, financial, asset safekeeping, information, and foreign business units at least semiannually; a special self-inspection at least every month. However, if the company has conducted a routine self-inspection, an internal audint unit (including the internal audint unit of the mother company) has conducted a routine business audit, a financial examination agency has conducted a routine business audit or self-evaluation on affairs concerning compliance with applicable acts and regulations in that month, a special self-inspection can be exempted in that month.
All departments and the subsidiaries of a financial holding company should conduct a self-inspection on internal control system at least annually; a legal compliance self-inspection at least semiannually.
For the self-inspection affairs mentioned in the preceding two paragraphs, the head of the unit should assign a person of another duty to conduct the audit and be kept secret.
The results of self-inspections mentioned in paragragh 1 and 2 shall be made as working papers and shall be preserved together with the self-inspection or internal audit reports and relevant materials for no less than five(5) years. |
| Article 26 |
The internal audit unit (including the internal audit unit of the mother company) shall continually conduct follow-up reviews on any examination opinions or audit deficiencies brought up by the financial examination authority, CPA, or internal audit unit, and on matters specified in the internal control system statement as requiring stronger improvement efforts, and submit a written report on the implementation of improvement of deficiencies to the board of directors, together with a copy to the supervisors (supervisors, the board of supervisors), and list these as an important factor in the relevant department's performance evaluations.
The major points of audit task for a financial holding company or a banking business should be prescribed by the competent authority. |
| Article 27 |
A financial holding company or a banking business shall supervise all departments (for thefinancial holding company, including its subsidiaries) to carefully assess and review thestatus of the operation of its internal control system, and, separately for self-inspectionresults and internal audit reports, submit internal control system statements jointly signed andissued by the chairperson, general manager, chief auditor, and compliance officer (asattachment) to the board of directors for approval, and subsequently within three (3) monthsfrom the end of each fiscal year disclose the information contained therein on the company'swebsite and publish the same on a website designated by the competent authority.
The internal control system statement under the preceding paragraph shall be duly publishedin the annual report, stock issue prospectuses, and other prospectuses.
The regulations in Paragraph 1 are not applicable to the banking business taken over by thecompetent authority. |