| Title： |
Taiwan Stock Exchange Corporation Direction for Auditing Internal Control Systems of Listed Companies(2004.01.08) |
| Date： |
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Article 5
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When auditing the internal control system of a listed company, the TSEC shall, in addition to auditing one or more audit items selected from the annual audit plan formulated by such audited company, list the following matters as requisite audit items:
1. acquisition or disposal of assets.
2. trading in derivatives.
3. lending funds to others.
4. providing endorsements or guarantees for others.
5. such other audit items as the competent authority or the TSEC may deem necessary.
An audited company shall submit the following documents within the time limit designated by the TSEC:
1. Internal Control System Statements for the most recent three years.
2. any internal audit plan as well as self-inspection report, audit report, and follow-up report and relevant working papers on audit items that are prepared for the given year.
3. internal control recommendations issued by a certified public accountant for the most recent period.
4. such other materials as the TSEC may deem necessary.
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Article 8
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The TSEC auditors shall prepare audit reports on their implementation of auditing work, specifying the following:
1. audit items.
2. audit findings.
3. follow-up activities.
If the audit findings reveal non-compliance by a listed company in its implementation of the internal control system, the audited company shall be requested to propose specific ameliorations or solutions and report the same by letter to the TSEC for recordation. In the event of material non-compliance, the TSCE may by letter request the audited company to dispatch personnel to participate in guidance courses held by a body designated by the competent authority, with a copy of the letter to such designated body. If the audited company fails to dispatch personnel for that purpose, the TSEC may, based upon the nature of the deficiency, list it as a first target for substantive review of the financial report, routine supervision, exceptional supervision, or internal control system audit to be administered at a later time. In addition, the TSEC will continue tracking the amelioration of the deficiency and preparing follow-up reports until the deficiency is remedied. Where necessary, a certified public accountant may be engaged to issue an opinion on relevant matters. The content of the follow-up report shall include the deficiency found in the previous audit and the status of its remedy in the current audit.
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