The purpose of self-inspection by an enterprise of its internal control system is to implement a self-monitoring mechanism and adapt to changes in the environment in a timely manner, so as to adjust the design of the internal control system and enhance the internal audit department's inspection quality and efficiency. The inspection scope shall include the design and operation of all aspects of the internal control system.
Before carrying out the inspection referred to in the preceding paragraph, an enterprise shall set out in its internal control system the procedures and methods for self-inspection operations.
An enterprise shall, based on the results of the risk assessment, determine the procedures and methods for self-inspection operations referred to in the preceding paragraph, which shall at least include the following:
1. Determining which controls should be tested.
2. Determining the business units to include in the self-inspection.
3. Evaluating the design effectiveness of controls.
4. Evaluating the operating effectiveness of controls.

When conducting self-inspections of its internal control system, an enterprise shall, except as otherwise required by the FSC, first arrange for self-inspections by all internal departments and subsidiaries on an at least annual basis, have its internal audit unit review each unit's self-inspection report, and submit the self-inspection reports, together with the reports on the correction of deficiencies and irregularities of the internal control system identified by the audit unit, as a primary basis for the board of directors and general manager to evaluate the overall effectiveness of the enterprise's internal control system and to produce a Statement on Internal Control.
The self-inspections under the preceding paragraph shall be recorded in working papers that shall be preserved, together with the self-inspection reports and relevant materials, for no less than five years.

An enterprise's findings in its self-inspection of the internal control system shall classify the system as either "effective internal control system" or "materially deficient internal control system" based on whether or not the system provides reasonable assurance regarding the following:
1. That the board of directors and the general manager know the degree to which the objective of effectiveness and efficiency of operations has been achieved.
2. That financial reporting is reliable.
3. That applicable acts and regulations have been complied with.

An enterprise shall conduct annual self-inspection of the design and operating effectiveness of its internal control system, and prepare a Statement on Internal Control in the format required by the FSC, and submit it to the FSC for recordation within three months from the end of each fiscal year.
Where an enterprise has established an audit committee in accordance with the Securities and Exchange Act, the design and operating effectiveness of the internal control system as referred to in the preceding paragraph shall be subject to the consent of one-half or more of the entire membership of the audit committee, and the provisions of paragraphs 4 and 5 of Article 4 shall apply mutatis mutandis.
The Statement on Internal Control referred to in paragraph 1, and any amendments to the Statement, shall first be passed by the board of directors.
The Statement on Internal Control referred to in paragraph 1 shall be publicly announced and reported through a website designated by the FSC; it is not necessary to further submit the written materials to the FSC for recordation.
The Statement on Internal Control referred to in paragraph 1 shall be included in the enterprise's prospectus or private placement memoranda.