During the formal examination of financial reports, where financial reports are not submitted pursuant to the regulations, the documents filed are incomplete, or the CPA produces a review report other than one with an unqualified or a review report other than one with an unqualified conclusion, affecting the fair presentation of the financial reports to the extent that a restatement is required, or the internal control system has material deficiencies; or during the formal examination of financial forecast, the documents submitted are incomplete, the documents publicly released are incomplete, the day of public announcement/report and/or the day of preparation are overdue, and the CPA produces a non-standard auditor's opinion, the concrete handling method or handling suggestions shall be summarized and reported to the competent authority.
After reviewing the financial reports, [the TWSE] shall explicitly express opinions on the review conclusion and the concrete handling method. If deficiencies or omissions are found, the TWSE shall request the listed company to rectify and, in the event of any irregular basis with material deficiencies or omissions which requires the TWSE to handle the matter pursuant to the Securities and Exchange Act or to request the assistance of relevant organizations, the TWSE shall affix review reports case-by-case, and draft a handling opinion to be reported to the competent authority, or suggest that the competent authority transfer the case to the competent authority for the industry concerned for further investigation.
The TWSE may issue a letter requiring the company found to have material deficiencies under the preceding paragraph to send personnel to attend education classes organized by an organization designated by the competent authority, and forward a copy of such letter to the aforementioned organization. If a company does not send personnel to attend the classes, the TWSE may, depending on the nature of the deficiencies, list such company as the first priority for auditing in the subsequent substantive examination of financial reports, routine regulation or regulation by exception, or internal control system audit.
If common deficiencies are found during the review of financial reports, a circular letter shall be regularly sent to the listed companies for their reference and improvement, and a copy thereof shall be forwarded to the competent authority.