| Title： |
Taiwan Stock Exchange Corporation Direction for Auditing Internal Control Systems of Listed Companies(2014.02.12) |
| Date： |
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Article 5
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When auditing the internal control system of a listed company, the TSEC, in addition to auditing one or more audit items selected from the annual audit plan formulated by such audited company, shall list the following matters as requisite audit items, provided that the TSEC may adjust relevant audit items for specific supervisory purposes:
- acquisition or disposal of assets.
- trading in derivatives.
- lending funds to others.
- providing endorsements or guarantees for others.
- state of operations of the board of directors.
- 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:
- Internal Control System Statements for the most recent three years.
- 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.
- internal control recommendations issued by a certified public accountant for the most recent period.
- such other materials as the TSEC may deem necessary.
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Article 6
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The TSEC carries out internal control system audits on listed companies with a view to checking whether the internal auditors of audited companies have faithfully carried out auditing operations. The key points for each audit item include:
- whether an internal control system has been adopted in compliance with securities-related laws and regulations and with laws and regulations applicable to the industry to which it belongs.
- whether internal controls have been faithfully implemented in compliance with the internal control system.
- whether internal audits have been faithfully implemented in compliance with the annual audit plan.
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Article 7
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When conducting an audit of the internal control system of a listed company, the TSEC shall focus its attention on the following matters:
- Reviewing whether the spot-checked operations shown in the audited company’s self-inspection reports, audit reports, follow-up reports, and relevant working papers have undergone proper approval, authorization, validation, adjustment, cross-checking, record checking and division of functions.
- Ascertaining whether the audited company’s auditors have conducted audits in compliance with the formulated annual audit plan and prepared working papers, audit reports, or follow-up reports accordingly.
- Reviewing whether the audited company has been subject to any sanction by the competent authority for its industry, and if it has received such a disposition, requesting the audited company to provide an explanation or a plan for improvement.
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