Regulations Governing the Implementation of Internal Control and Audit System and Business Solicitation System of Insurance Agent Companies and Insurance Broker Companies Article 11

Insurance agent companies, insurance broker companies or banks shall plan the organization structure, staffing and functions of internal audit unit and draft internal audit manual.An internal audit manual shall contain at least the following particulars:1. Operating process for annual audit plan.2. Audit and assessment of internal control system to measure the effectiveness and the level of compliance of existing policies and procedures, and the effect on various operating activities.3. Audit items, time, procedures and methods.4. Format, handling and preservation of internal audit report.Insurance agent companies, insurance broker companies or banks shall see to it that all of its internal units carry out self-evaluation and have its internal audit unit review the self- evaluation reports; the self- evaluation reports, together with deficiencies and irregularities found by auditors and improvement actions taken will serve as a basis for the board of directors(council), management, auditors, and compliance officer to evaluate the overall effectiveness of the internal control system and for the issue of a statement on internal controls.