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Article 9
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Corresponding actions shall be taken promptly upon discovery of the following during an audit:
- Upon discovery of a material irregularity for which an in-depth audit is necessary, the company shall be listed as an audit target for routine supervision or exceptional supervision.
- Upon discovery of a material irregularity or violation of applicable provisions of the TWSE Operating Rules, the prescribed measures shall be taken and a report shall be submitted to the competent authority.
- Upon discovery of a material deficiency or upon occurrence of an event under any subparagraph of Article 43 of the Regulations for the Establishment of Internal Control Systems by Public Companies, where necessary, the TWSE may submit a report to the competent authority requesting the audited company to engage a certified public accountant to conduct a special internal control system audit and issue an audit report. If the CPA is found upon review to have failed to abide by Section III (Special Audits by Certified Public Accountants) of Chapter III of the Regulations for the Establishment of Internal Control Systems by Public Companies, the TWSE may request the CPA in writing to pay attention and take action, with a copy forwarded to the competent authority.
If any of the circumstances in the preceding paragraphs applies to a TWSE listed company, the TWSE may impose a default penalty of NT$30,000 to NT$200,000 for the irregularity or deficiency, provided in the event when the circumstance has a material impact on shareholder equity, the TWSE may impose a default penalty between NT$200,000 and NT$5 million; timely rectification shall be made if the TWSE requests rectification within a prescribed time limit, or the TWSE may impose a default penalty from NT$50,000 to NT$5 million successively for each failure to rectify on schedule until the date of rectification.
A TWSE listed company on which a default penalty is imposed shall pay the penalty to the TWSE Finance Department within five days after receiving notice from the TWSE.
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