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Article 16
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After having presented the audit and follow-up reports, a service enterprise shall submit the same for review by each and all supervisors by the end of the month next following the completion of the audit items.<br/>A service enterprise's internal auditors identifying any material event such as a material violation or any likelihood of material loss to the enterprise shall promptly prepare and present a report and notify each and all supervisors. If any of the recommendations regarding any of the aforementioned deficiencies is not accepted by management, resulting in material loss by the service enterprise, the internal auditors shall also prepare and present a report and notify each and all supervisors as well as report to the competent authority.<br/>Where a service enterprise has established the position of independent director, when an action is taken under the two preceding paragraphs, a copy of the submission or notice shall be provided simultaneously to the independent director(s).<br/>After an examination of a service enterprise by its competent authority or an examination on a foreign branch (or subsidiary) by its local competent authority is completed, or after an examination report is received, the internal audit unit of its head office (or parent company) shall, in accordance with the principle of materiality, immediately report to the directors and supervisors, and report to the soonest board meeting. The report shall include the content of any examination communication meetings, any major deficiencies revealed by the examination, any rating downgrade by the competent authority, and any improvement plans demanded by the competent authority with respect to material deficiencies or possible disciplinary measures to be taken.
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