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Article 25
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A Bank shall in its financial reports disclose information on the professional fees of its certified public accountant and any change in its certified public accountant in accordance with these Regulations.
The Bank shall in its financial reports disclose the following information on the professional fees of its certified public accountant:
- "Professional fees for auditing services" referred to herein means the professional fees paid by the Bank to a certified public accountant for auditing, review, and secondary reviews of financial reports, financial forecast reviews, and tax certification. Professional fees for non-auditing services means professional fees paid for other than the above services.
- When professional fees paid to a certified public accountant or the accounting firm of a certified public accountant or its affiliate enterprises for non-auditing services account for a proportion equal to one-quarter or more of the fees paid for auditing, or when fees paid for non-auditing services reach NT$500,000 or more, the amount of fees paid for both auditing and non-auditing services as well as the nature of the non-auditing services performed shall be disclosed (Form 22).
- When the Bank changes its accounting firm and the amount of fees paid for auditing services during the year in which the change is made are lower than for the previous year, the amount by which the fees decreased, the proportional decrease, and the reasons therefor shall be disclosed.
- When the amount of fees paid for auditing services is lower than for the previous year by 15 percent or more, the amount by which the fees decreased, the proportional decrease, and the reasons therefor shall be disclosed.
If the Bank has replaced its certified public accountant in the last two years or in the subsequent period, it shall disclose the following information on the change in certified public accountant (Form 23):
- Regarding the former certified public accountant:
- Date of and cause for replacing the certified public accountant. Explain whether the certified public accountant voluntarily terminated or ceased accepting the engagement, or whether the Bank terminated or discontinued the appointment.
- If such former certified public accountant issued any audit report with other than an unqualified opinion during the preceding two years, the opinion and the reason shall be provided.
- Whether there is any different opinion between the Bank and the former certified public accountant with regard to accounting principles or practices, disclosure of financial reports, or auditing scope or steps.
- If there is any different opinion, a detailed explanation of the nature of each different opinion, the handling by the Bank (including whether or not the former certified public accountant has been authorized to give full reply to the successor accountant's inquiries on the difference of opinion) and the final result of the handling shall be provided.
- Where the former certified public accountant has notified the Bank that it lacks a sound internal control system so that the financial report is not reliable, or where the former certified public accountant has notified the Bank that he/she could not rely on the Bank's statement, or that he/she did not want to be associated with its financial report, such shall be disclosed.
- Where the former certified public accountant has notified the Bank that the auditing scope had to be expanded, or that there was data showing that if the auditing scope was expanded, the credibility of the financial report already issued or soon to be issued might be damaged, or where the former certified public accountant has notified the Bank that based on the collected data, the credibility of the financial report already issued or soon to be issued might be damaged, but where due to replacement of the certified public accountant or for other reason, the auditing scope was never expanded by the former certified public accountant, such shall be disclosed
- Regarding the successor certified public accountant:
- Name of the successor accounting firm and certified public accountant and date of engagement.
- Before the Bank officially engages the successor certified public accountant, if it inquired with such accountant about the accounting treatment method of a specific transaction or the applicable accounting principle and his/her possible opinion on the financial report, it shall disclose the matters it inquired about and the result thereof.
- The Bank shall consult with and obtain the written opinion of the successor certified public accountant in connection with any discrepancy of opinion between it and the former certified public and disclose the same.
- The Bank shall send a letter to the former certified public accountant regarding the matters provided in paragraph 3, subparagraph 1, and subparagraph 2, item 3, and notify such accountant to reply within 10 days if he/she has a different opinion. The Bank shall disclose the reply letter of the former certified public accountant.
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