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Article 13
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The term "has failed to prepare financial reports in accordance with relevant laws and regulations and generally accepted accounting principles" as used in Article 9, paragraph 1, subparagraph 6 of the Rules shall mean any of the following:
- The financial report is not prepared in accordance with relevant laws and regulations and generally accepted accounting principles, and a certified public accountant issues an adverse opinion or a disclaimer of opinion, or a certified public accountant issues an audit report with a qualified opinion, thereby affecting fair presentation of the financial report.
- Failure by a company to make correction in its financial report after being instructed to do so by the competent authority in a letter.
- The audit working papers of the certified public accountant are reviewed by the TWSE and found to contain a significant deficiency such that it cannot be ascertained whether fair presentation is achieved in the financial report.
The term "has failed to effectively implement its written accounting system, internal control system, or internal audit system" in the same subparagraph shall mean the occurrence of any of the following circumstances:
- During the year in which it applies for market listing, the applicant company fails to establish a sound accounting system, internal control system, or internal audit system in writing in accordance with the regulations issued by the competent authority to govern the preparation of financial reports for the relevant industry or the laws and regulations relating to internal control systems.
- Where the TWSE finds, through on-site audit, that the company fails to operate in reasonable accordance with its written accounting system.
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