Articles 38 through 41 of the Regulations Governing Establishment of Internal Control Systems by Public Companies shall apply mutatis mutandis to an enterprise' supervision and management over its subsidiaries.

An enterprise shall specify in its internal control system the penalties for violation of these Regulations or its internal control system rules by members of management and relevant personnel.
An enterprise shall from time to time check, with respect to its internal auditors, whether there is any violation of Article 11, paragraph 1 in relation to the "qualified" and "full-time" requirements or of Article 16, paragraph 2, and upon discovery of any violation, shall adjust the position of the auditor within one month from the day of discovery, unless otherwise provided by law or regulation.
When reporting the basic information on internal auditors pursuant to Article 18, an enterprise shall check whether or not the internal auditors have met the requirements under Article 17, paragraph 1. If any auditor has not, the enterprise shall take corrective measures within one month; upon failure to do so within that period, the enterprise shall promptly adjust the auditor's position, unless otherwise provided by law or regulation.

Under any of the following circumstances, the FSC may order an enterprise to make improvements within a prescribed time limit, or where necessary, to engage a CPA to conduct a special audit of its internal control system and obtain an audit report and submit it to the FSC for recordation:
1. Failure to document its internal control system.
2. Failure to appoint qualified personnel as full-time internal auditors or to appoint them in an appropriate number.
3. Failure to file a report within a prescribed time limit on, or failure to scrupulously execute, its annual audit plan.
4. Failure to file a report within a prescribed time limit on the actual execution of its annual audit plan.
5. Failure to file a report within the prescribed time limit on the correction of any deficiency or irregularity of the internal control system identified in an audit.
6. Failure to duly conduct self-inspection of its internal control system or to prepare a Statement on Internal Control.
7. Serious instance of failure to correct a deficiency of the internal control system pursuant to the internal control recommendations issued by a CPA.
8. Serious instance of false financial reporting or violating a law or regulation.
9. Any material fraud or suspicion of fraud.
10. Other condition where the FSC deems a special audit to be necessary.

Where an enterprise has established an audit committee in accordance with the Securities and Exchange Act, the provisions of Article 4, paragraph 1, Article 6, paragraph 1, subparagraphs 1 and 5, Article 15, paragraphs 1 and 2, Article 16, paragraph 1, and Article 25, paragraph 2 of these Regulations in relation to supervisors shall apply mutatis mutandis to the audit committee.

The FSC shall publicly announce the formats referred to in these Regulations.

The provisions of Article 4, paragraphs 2 through 5, Article 7, Article 8, Article 13, Article 21, Article 23, paragraphs 2 through 5, and Articles 24 through 30 shall apply mutatis mutandis to a securities broker, futures broker or insurance enterprise concurrently operating discretionary investment business, or to a trust enterprise, futures trust enterprise or managed futures enterprise concurrently operating securities investment trust business or discretionary investment business, unless otherwise provided by the Securities and Exchange Act, the Trust Enterprise Act, the Futures Trading Act, the Insurance Act, or any other law.

These Regulations shall be implemented from the date of issuance.