Implementation Regulations of Internal Control and Audit Systems for the Credit Departments of Farmers' and Fishermen's Associations Article 21

A credit department should establish a self-inspection system to step up internal controls and thereby prevent the occurrence of fraud.Credit business related units shall conduct at least a general self-inspection semiannually; at least a special self-inspection every month. The head of the unit should assign a person other than the original handling staff to conduct the inspection and keep the inspection activity confidential beforehand. In the month where general self-inspection or general audit by the internal auditor has been conducted, the special self-inspection may be exempted in that month.The self-inspection report shall be stamped with the seal of the unit head and then submitted to the internal auditor for report to the secretary-general. In case of regulatory violation or other deficiencies revealed in the self-inspection report, the secretary-general should report to the board of directors for discussion of concrete improvement measures, which, once decided by the board, will be immediately implemented by the board under the supervision of the board of supervisors.Farmers’ and fishermen’s associations should provide the self-inspection personnel with proper training. The internal auditor will supervise the self-inspection work conducted by respective unit.