Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises Article 10

An insurance enterprise shall plan the organization, size and responsibilities of its internal audit unit and produce internal audit working manuals, which shall include at least the following particulars:1. Operational process of annual audit plan;2. Inspection and assessment of internal control system to measure the effectiveness and compliance status of existing policies and procedures and their effect on various business activities;3. Audit items, time, procedures and methods; and4. The contents of the formats, processing and retention of internal audit reports.An insurance enterprise should see to it that all of its units carry out self-inspection, and have its internal audit unit review the self-inspection reports of each unit, which, together with internal audit unit's report on the deficiencies and irregularities in internal controls found and improvement actions taken will serve as a basis for the board of directors,general manager, chief auditor, and chief compliance officer to evaluate the overall effectiveness of the internal control system and to issue an internal control system statement.