Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises Article 12

When any of the following circumstances applies to a chief auditor in overseeing internal audit work, the competent authority may, having regard to the seriousness of the event, issue an official reprimand, order the chief auditor to make improvements within a specified time limit, or otherwise order the insurance enterprise to release the chief auditor from duty:1. Abusing power of office to engage in improper activities, or acting contrary to his or her duties in an attempt to seek illicit profits for him/herself or for others, or taking advantage of the job to damage the interests of the employer or others.2. Disclosing, delivering, or publicizing all or part of insurance examination reports on the employer to a person unrelated to such job without the consent of the competent authority.3. Failing to disclose in the internal audit report any material deficiency found in the financial or business operations of the employer.4. Failing to notify the competent authority any material malpractice or fraud at the employer due to internal mismanagement.5. Issuing a fraudulent internal audit report after performing the internal audit work.6. Failing to follow the instructions of the competent authority in conducting audit work or providing relevant information.7. Having improper financial dealings with customer or counterparty of transaction involving employer's funds as evidenced by facts.8. Failing to identify a material deficiency in the financial or business operations of the employer as a result of obviously insufficient or incompetent staffing of internal auditor.9. Having committed other acts that impair the reputation or interests of the employer.