Taiwan Stock Exchange - Rules & Regulations Directory

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Title:

Taiwan Stock Exchange Corporation ("TWSE") Procedures for the Review of Internal Control System Reports Issued by Certified Public Accountants 

Amended Date: 2024.01.12 (Articles 2 amended,English version coming soon)
Current English version amended on 2013.01.23 
Categories: Primary Market > Review

1
    These Procedures are adopted for the purposes of implementing the review of internal control reports issued by certified public accountants ("CPAs"), promote the effectiveness of auditing, enhance the quality of the review, and identify responsibilities, pursuant to the Public Company Internal Control System Establishment Guidelines (the "Guidelines") promulgated and implemented by the competent authority and Article 6 of the TWSE Procedures for Review of Securities Listings.

2
    The TWSE shall obtain from the company applying for listing an internally-audited internal control system statement, CPA audit report on project audit of internal control system and CPA checklist on the audit and review of the internal control systems of companies applying for listing (see Attachment 1), to ascertain if they are executed in accordance with the Guidelines. The TWSE shall accordingly fill out the TWSE's Opinion on CPA Internal Control System Reports" (see Attachment 2):
  1. Whether the audit report submitted includes the CPA's internal control system report, the company's internal control system statement, and the CPA checklist on the review and audit of the internal control systems of companies applying for listing;
  2. Whether there are major irregularities found in the CPA checklist on the review and audit of the internal control systems of companies applying for listing;
  3. if the applicant is a public company, whether it has submitted both an internal control system statement indicating the system has been effectively designed and enforced and an unqualified audit report;
  4. Whether the previously mentioned internal control system statement was co-signed by the company's responsible person, board and president/general manager;
  5. Whether the previously mentioned audit report was jointly reviewed and certified by more than two CPAs of an accounting firm.

3
    If irregularities are found regarding the above, the TWSE may specially contact the CPA for additional explanation and, depending on the actual situation, further access the CPA's working paper to examine the irregularities, and determine whether the following provisions apply and deal accordingly:
  1. The TWSE's Rules Governing the Handling of Errors by Certified Public Accountants in the Auditing of Initial Stock Listing Applications
  2. Provisions under Article 9, Paragraph 1 of the TWSE Rules for Review of Securities Listings, advising against listing.

4
    These Procedures shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner.

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw