The TWSE selects at least 10 percent of annual financial reports, at least 5 percent of Q2 and Q3 financial reports, and at least 3 percent of Q1 financial reports as companies to be audited. A listed company (excluding listed Taiwan Depository Receipts) shall be selected at least once every 5 years as a company to be audited.
After selecting the companies subject to audit, within 20 days after the deadline for the submission of financial reports, the TWSE shall submit the company names and the reasons for writing any special reports to the competent authority for recordation, and shall complete the special reports within 45 days thereafter, and then submit the reports to the competent authority for recordation. If, however, the audit case is complex and requires a longer period of time, the TWSE may file with the competent authority for approval to extend the audit period, provided that the extension may not be longer than 1 month.
If any of the following circumstances is found to exist after the audit is conducted, it shall be handled immediately:
- Any material irregularity or violation of securities-related law or regulation shall be reported to the competent authority for further handling.
- Any violation of the TWSE Operating Rules shall be handled in accordance with the Operating Rules.