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Article 2
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When the audit or review by a CPA making a listing application for a company applying for initial stock listing of the financial reports attached to the application or the assurance by said CPA of the internal control system review reports or financial forecasts so attached is discovered to be deficient under any of the following circumstances, the TWSE may impose dispositions on the CPA in accordance with Article 3:
- The contents of the financial reports of the company applying for stock listing do not follow the Regulations Governing the Preparation of Financial Reports by Securities Issuers, Regulations Governing the Preparation of Financial Reports by Securities Firms, generally accepted accounting principles, or related laws and regulations, or established practices, or if the consolidated financial reports submitted by a foreign issuer applying for a primary stock listing or Taiwan Innovation Board (TIB) primary listing do not follow Articles 28-3, paragraphs 3 and 4 or Article 29, paragraph 7 of the Rules Governing Review of Securities Listings or Article 4-1, paragraph 1, subparagraph 1, item 3 of the Operational Procedures for the Review of Foreign Securities Listing of the TWSE, thus resulting in errors or inaccuracy to the extent the amount affected reaches the amount specified in Article 6, paragraph 1, subparagraph 1 of the Securities and Exchange Act Enforcement Rules but is not disclosed.
- Failure to disclose the facts which shall be disclosed in the financial reports of the company applying for stock listing, and the failure is potentially misleading but is not disclosed.
- Failure to conduct the audit or review in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants or the Auditing Standards Committee’s Engagement Standards.
- Failure to follow the Standard on Assurance Engagements 3401A, Limited Assurance of the Financial Forecasts Published by Public Companies, when providing limited assurance of the listing applicant company's financial forecasts.
- Failure to indicate the failure of the applicant company to follow the Regulations Governing Establishment of Internal Control Systems by Public Companies or related directives.
- Failure of the CPA to conduct the required special audit procedure in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies.
- Failure of the CPA to issue an appropriate internal control system review reports in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies.
- Deficiencies in the written supplementary information issued during the period of review of the listing application in regard to the internal control system review reports, financial reports or financial forecasts.
- Other deficiencies identified by the TWSE.
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