Implementation Regulations of Internal Control and Audit Systems for the Credit Departments of Farmers' and Fishermen's Associations Article 5

A credit department shall establish an internal audit system and a self-inspection system to maintain effective and proper operation of the internal control system.The internal audit system should require that internal auditors are responsible for auditing the operations of relevant units (including the credit department and sub-departments, electronic data processing unit and property safekeeping unit) and periodically evaluate the performance of self-inspection conducted by relevant units.The purpose of an internal audit system is to assist the board of directors, board of supervisors and secretary-general in examining and evaluating whether the internal control system works effectively and to provide timely suggestions for improvement so as to ensure the ongoing and effective implementation of internal controls.With respect to the self-inspection system, staff of credit business related units should check on each other the actual implementation of business under the supervision of deputy chief or personnel at comparable position or higher as assigned by each unit to discover deficiencies early and take corrective actions in a timely manner.