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Article 18
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For audits of the internal control systems of TWSE primary listed companies and TIB primary listed companies, the TWSE will select a company for audit by the following criteria:
- A company issues an Internal Control System Statement with a statement other than "No material deficiency in the internal control system."
- A company has had an Internal Control System Statement containing a statement of material deficiency issued within the most recent three fiscal years.
- A company's Internal Control System Statement has been changed from the original "compliance with all acts and regulations" to "compliance with major acts and regulations."
- A company has failed to file an auditors list, audit plan, audit plan implementation report, report on correction of deficiencies and irregularities, or Internal Control System Statement pursuant to the Regulations for the Establishment of Internal Control Systems by Public Companies.
- A material deficiency is found in the implementation of a company's internal control system during the review of financial reports by the TWSE.
- During the fiscal year, a company changes an already-filed annual audit plan with no legitimate reason.
- Material non-compliance was found during a previous audit of a company's internal control system.
- There is a change in a company's financial officer or internal audit executives, without reasonable grounds.
- A random selection will be made from among TWSE primary listed companies and TIB primary listed companies whose internal control systems have not been audited during the preceding three fiscal years; however, a TWSE primary listed company or a TIB primary listed company may be exempted from selection if during the preceding year the company obtained corporate governance certification from an external and independent and objective institution, provided that if any material deficiency is found in the company's internal control, an audit of its internal control will still be conducted.
- Where an audit is otherwise necessary.
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