Regulations Governing the Internal Controls and Audit System for Postal Remittances and Savings Article 13

The internal audit unit shall undertake the following tasks:1. Plan the organization structure, size and duty of the internal audit unit. Prepare internal audit working manuals and working papers, which shall at least include assessing the various rules and operating procedures of the internal control system to determine whether adequate internal controls are already in place in the current rules and procedures, whether each department has realistically carried out the internal controls, and whether the internal controls are carried out in a reasonably effective manner, and from time to time provide recommendations for improvement.2. Monitor the formulation of rules and procedures for self-inspection and assessments of the internal control system by business and management units, and the implementation of periodic self-inspection by each unit.3. Formulate annual audit plans and, based on the business risk profile of and implementation of internal audits by each department, determine audit plans targeted at each department.For the purpose of self-inspecting its internal control system, Chunghwa Post shall see to it that all of its internal departments carry out self-inspection, and have its internal audit unit review the self-inspection reports of each department; such self-inspection, together with the reports on the correction of any deficiencies and irregularities discovered in the internal control system by the internal audit unit, shall serve as a basis for the board of directors, president, chief auditor, and chief compliance officer to evaluate the overall efficacy of the internal control system and to issue internal control system statements.