The TWSE shall, in principle, carry out quarterly audits of the implementation of audit plans by internal auditors of two percent of listed companies, and shall, where necessary, carry out on-site audits and use compliance tests. On-site audits shall be conducted on at least one-fourth of audited companies, and shall be conducted on any company to which any circumstances under paragraphs 1 through 9 of Article 4 hereof apply. Within one month after the end of each quarter, the TWSE shall compile and submit the audit reports and/or follow-up reports for that quarter to the competent authority for recordation. The quarterly selection ratio under paragraph 1 may be adjusted as needed, provided that at least eight percent of companies shall be selected for audit in the whole of each year.
Where a material unexpected incident occurs to a TWSE primary listed company, or where the competent authority or the TWSE deems it necessary for other reasons, the TWSE may examine the effectiveness of the design and implementation of the said company’s internal control systems.