When the audit or review by a CPA making a listing application for a company applying for initial stock listing of the internal control system review reports, financial reports or financial forecasts attached to the application is discovered to be deficient under any of the following circumstances, the TWSE may impose dispositions on the CPA in accordance with Article 3:
- The contents of the financial reports of the company applying for stock listing do not follow the Regulations Governing the Preparation of Financial Reports by Securities Issuers, Regulations Governing the Preparation of Financial Reports by Securities Firms, generally accepted accounting principles, or related laws and regulations, or established practices, or if the consolidated financial reports submitted by a foreign issuer applying for a primary stock listing do not follow Articles 28-3, subparagraphs 3 and 4 of the Rules Governing Review of Securities Listings or Article 4-1, paragraph 1, subparagraph 1, item 3 of the Operational Procedures for the Review of Foreign Securities Listing of the TWSE, thus resulting in errors or inaccuracy to the extent the amount affected reaches the amount specified in Article 6, paragraph 1, subparagraph 1 of the Securities and Exchange Act Enforcement Rules but is not disclosed.
- Failure to disclose the facts which shall be disclosed in the financial reports of the company applying for stock listing, and the failure is potentially misleading but is not disclosed.
- Failure to conduct the audit in accordance with generally accepted auditing standards or the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants.
- Failure to follow the Financial Forecast Review Guidelines when reviewing the listing applicant company's financial forecasts.
- Failure to indicate the failure of the applicant company to follow the Regulations Governing Establishment of Internal Control Systems by Public Companies or related directives.
- Failure of the CPA to conduct the required audit procedure in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies.
- Failure of the CPA to issue an appropriate internal control system review reports in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies.
- Deficiencies in the written supplementary information issued during the period of review of the listing application in regard to the internal control system review reports, financial reports or financial forecasts.
- Other deficiencies identified by the TWSE.