Regulations Governing the Internal Controls and Audit System for Postal Remittances and Savings Article 14

The internal auditing department shall conduct at least one general audit and one special case audit a year of business, finance, asset quality and information departments and at least one general audit a year and a special case audit according to actual needs of other management departments:The contents of the general audit or the special case audit, which is performed by the internal auditing department, should cover whether there are improper marketing activities when dealing with the sale of financial products; whether the contents of the products are clearly disclosed; whether the risks are well notified; whether the contract is fair and other obligations are performed appropriately following the law or self-regulatory guidelines.The internal audit unit should include the execution status of the regulatory compliance system into the general audit or special case audit of the business and management units.Chunghwa Post shall disclose at least the following information in its internal audit report for general business audits.1. Audit scope; summary commentary; financial status; operation performance; asset quality; management of the operation of board of directors; compliance with major acts, regulations, and rules; internal controls; interested party transactions; the control and internal management of all business tasks; protection and management of customers' data; information management; management of customer data confidentiality; protection measures of consumers and investors and the results of self-inspection, and the evaluation to above matters.2. Opinions for the major illegal errors or faults in all departments, and the suggestions for punishment for employees fail to fulfill their duties.3. The examination comments or faults listed by the financial examination agency, accountants, internal audit unit, and self-inspection people, and the improvement status of items that enlisted as 'need further improvement' by the internal control statement.Internal audit reports and their working papers shall be kept for at least five years for reference.The internal audit report of Chunghwa Post shall be delivered to the supervisors for review and unless it is otherwise provided by the MOTC and the FSC, shall be submitted to the MOTC and the FSC within two (2) months following completion of the audit.