Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Federation of CPA Associations of Chinese Taiwan

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Republic of China


    2. Name of member body:
      Federation of CPA Associations of Chinese Taiwan

      Or please specify name:



    3. Individual responsible for preparation:
      Evon Y.F. Chen C.P.A


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      10 / 1977



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      N/A



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Company Law
      b). the Enacting body: The Legislative Yuan - the legislature of R.O.C.
      c). date the Act or Code came into force: 12 / 1929


    25. How can IFAC obtain a copy of the Act or Code?
      An english version can be obtained through http://eng.selaw.com.tw, item no. 167.


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities According to the Company Law, a company shall submit to its shareholders for their approval of its annual financial statements. The financial statements should be prepared in accordance with R.O.C GAAP.
      Private companies According to the Company Law, a company shall submit to its shareholders for their approval of its annnual financial statements. The financial statements should be prepared in accordance with R.O.C GAAP. According to the "Rules Governing the Filing and Auditing of Financial Statements" as precribed in the Company Law, the competent authority may, at any time or time to time, send its officers to examine the financial statements or relevent documents prepared by the company.
      Governmental
      Not-for-profit
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities According to the "Securities and Exchange Law", the securities issuers shall have their financial ststements audited and certified by a certified public accountant. Besides the annual report, the semi-annual financial reports should also be audited. Whereas the quarterly financial report needs only to be reviewed by a certified public accountant. The audit and review should be conducted in accordance with R.O.C. GAAS.
      Private companies According to the Company Law, if the equity of a company exceeds NTD30 million, the company shall have its annual financial statements audited and certified by a certified public accountant. The audit should be conducted in accordance with R.O.C. GAAS.
      Governmental
      Not-for-profit
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      Besides the R.O.C GAAP and GAAS, the special requirements regarding accounting and auditing announced by the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan are as below:
      1. For financial reporting - " Guidelines Governing the Preparation of Financial Reports by Securities Issuers"
      2.For financial auditing- "Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountants"

    2. the Enacting body(ies)

      Both a.1 and a.2 above are established and issued by the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.

    3. the latest amendment date?

      For a.1 above- January 2003
      For a.2 above- November 2002


    35. How can IFAC obtain a copy of the Legal authority?
      Both a.1 and a.2 above can be obtained in english version through "http//eng.selaw.com.tw".

      a.1-- item no. 109
      a.2-- item no. 141


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      Besides annual statutory financial statements, the half-year and quarterly reports are also required to be issued by the listed entities.


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:
      Please see Question 34.a. The additional auditing requirement is "Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountants".


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      For listed entities, the lead audit partner is allowed to provide audit services to an issuer up to a maximun of 5 consecutive years, after which the engagement will to be rotated to a different partner.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Ministry of Finance 11/2002 Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan
      Other (please describe) For all entities N/A 7/2003 Accounting Research and Development Foundation (Foundation)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      For listed entities above, the documents can be accessed through "http//eng.selaw.com.tw" and they are available in English version.
      Refer: www.sfb.gov.tw/ensfcindex.htm and
      www.ardf.org.tw


      For all entities above, the documents issued by "Accounting and Research Development Fundation" are published for sale only. The publication information can be obtained through "http://www.ardf.org.tw" in Chinese only.


      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan)


    44. For Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      It's a government body.

      b. Name of standards

      "Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountants"


    45. How many voting members does the standard-setting body have?
      N/A. It's a government body.


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      N/A. It's a government body. In order to be qualified as a government officers, they should pass the national examination.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      N/A. It's a government body. In order to be qualified as a government officers, they should pass the national examination.

      Please note that Question 49 below is not applicable in this section.


    49. What is the term of appointment for members?
      1 Year(s)


    50. For how many years has the standard-setting body been in existence?
      44 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      8,950,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      33.5



    52. To what entity is the standard-setting body accountable?
      Ministry of Finance


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The draft rules or regulations will be initiated by a responsible officer and then discussed within the SFC. The significant rules or regulations will be made public for comment before its finalization. The final revised editions will be announced on the web site of the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.

    2. accessibility of meetings (i.e., public or private)

      The meeting is private unless a public hearing is arrangeed.

    3. approval process for final standards (i.e., majority required to approve final standards)

      As mentioned in a. above, the draft rules or regulations will be initiated by a responsible officer and then discussed within the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.

    4. other relevant due process activities

      N/A

      Please note that Question 54 below is not applicable in this section.


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      1 Day(s)


    Section 5B -- Standard-Setting (Accounting Research and Development Foundation (Foundation))


    44. For Accounting Research and Development Foundation (Foundation), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      It's a non profit-seeking organization. Our (R.O.C) GAAS are established by the Audit Standards Committee under the Accounting Research and Development Foundation (Foundation).

      b. Name of standards

      Generally Accepted Auditing Standards (GAAS)


    45. How many voting members does the standard-setting body have?
      13


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The criterias include best person for the job, sector of the profession, private and public members, academic, etc.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      These members are appointed by the chief committee of the Audit Standards Committee, commissioned by the Board of the "Accounting Research and Development Foundation".


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      20 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      54,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      33.5



    52. To what entity is the standard-setting body accountable?
      No, as the Foundation is a non profit-seeking organization.


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The draft standards will be made public for comment before its finalization. The final revised standards will be announced on the web site of the Foundation. The hard copy is also available for sale at the same time.

    2. accessibility of meetings (i.e., public or private)

      The meeting is private unless a public hearing is scheduled.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority required to approve the final standards.

    4. other relevant due process activities

      N/A


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      7 Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice
      Professional Accountants in Business Professional Ethics Standards in Business 5/2003 National Federation of Certified Public Accountants Association of the R.O.C.
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      These documents are available in Chinese only. They can be reached through "http://www.roccpa.org.tw/News.php".

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (National Federation of Certified Public Accountants Association of the R.O.C.)


    56. For National Federation of Certified Public Accountants Association of the R.O.C., please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      It's a self-regulatory and non profit-seeking organization established by the profession. The ethics standards are established by the Ethics Committee under the National Federation of Certified Public Accountants Association of the R.O.C.

      b. Name of standards

      Professional Ethics Standards in Business


    57. How many voting members does the standard-setting body have?
      15


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      As mentioned in Question 56, the ethics standards are set by the Ethics Committee under the National Federation of Certified Public Accountants Association of the R.O.C., which comprises 3 regional CPA associates. The members of the Ethics Committee are recommended by the 3 regional CPA associates.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The members of the Ethics Committee are recommended by the 3 regional CPA associates.


    61. What is the term of appointment for members?
      3 Year(s)


    62. For how many years has the standard-setting body been in existence?
      55 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      6,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      33.5



    64. To what entity is the standard-setting body accountable?
      The Ethics Committee is responsible to the board of National Federation of Certified Public Accountants Association of the R.O.C.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The draft standards will be made public for comment before its finalization. The final revised standards will be announced on the web site http://www.roccpa.com.tw

    2. accessibility of meetings (i.e., public or private)

      The meeting is private unless a public hearing is scheduled.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority required to approve final standards.

    4. other relevant due process activities

      N/A


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      2 Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      The education system in our country including:
      1. Primary school (6 years), 2.Junior high school (3 years), 3.Senior high school (3 years), 4. College or university (4-7 years), 5.Master program (1-4 years), 6.doctor program (2-7 years).

      For stages 1 and 2 are compulsory education.


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      As a accountant or auditor, she (he) should have a college/ university degree majoring in accounting.


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Professional examinations
      Practical experience
      Besides the academic requirements and professional examination, at least 2-year working experiences in practice is necessary to be qualified as a certified public accountant.
      Final qualifying examination
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      1.The Ministry of Education is responsible for the national education system.
      2.Once qualified as a certified public accountant, the Professional Education Committee under the National Federation of Certified Public Accountants Association of the R.O.C.requires all its members to follow a Continuing Education Program (CEP).

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      1.The Ministry of Education drafts the relevant law and sends to the Legislative Yuan for approval.
      2.The ongoing education program announced by the Professional Education Committee requires its members to follow a CEP at least 90 hours every 3 years.

    2. How many voting members does the relevant body(ies) have

      1.For the Ministry of Education - N/A. It's a government body.

      2.For the Professional Education Committee, it has 24 voting members.

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: For the Ministry of Education, it's employed. For the Professional Education Committee, it's voluntary and has been in existence fo 40 years as mentioned in d. below.

    4. For how many years has the body been in existence?

      40 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?
      Not available in English.

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Legislative Yuan - the legislature of R.O.C.


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      The Examination Yuan of R.O.C.


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      As mentioned in Question 71, once qualified as a certified public accountant, the Professional Education Committee under the National Federation of Certified Public Accountants Association of the R.O.C. requires all its members should undergo a CEP at least 90 hours evry 3 years. The SFC enforces that requirement by suspending violators from providing audit services to public companies.



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government The standards of government accounting 03/2004 Goverment accounting advisory committee
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      http:www.dgbas.gov.tw

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Goverment accounting advisory committee)


    83. For Goverment accounting advisory committee, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      It's a government body.

      b. Name of standards

      The standards of government accounting


    84. How many voting members does the standard-setting body have?
      22


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Academic scholars are voluntary and public members are employed


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      When selecting members, our criteria are if she/he is the best person for the job, sector of the profession, private and public members and academic scholars.


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Directorate - General of Budget, Accounting and Statistics (DGBAS) Executive Yuan, R.O.C


    88. What is the term of appointment for members?
      2 Year(s)


    89. For how many years has the standard-setting body been in existence?
      2 Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      45,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      33.5



    91. To what entity is the standard-setting body accountable?
      Directorate - General of Budget, Accounting and Statistics (DGBAS)


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The protocol will consult experts from relevant field.

    2. accessibility of meetings (i.e., public or private)

      Meetings are not open to public.

    3. approval process for final standards (i.e., majority required to approve final standards)

      After it is approved by the Government Accounting Advisory Committee, the final standard
      is promulgated by the Directorate - General of Budget, Accounting and Statistics (DGBAS)


    4. other relevant due process activities

      Published publicly.


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      9 Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Ministry of Finance 1/2003 Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan
      Other (please describe) N/A 12/2003 Accounting Research and Development Foundation (Foundation)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      1. All financial statements should be prepared in accordance with the GAAP announced by the Accounting Research and Development Foundation. Besides the GAAP, the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan also issues some additional special requirements regarding the preparation of financial reports of listed companies.
      2. GAAP are established and published by the Accounting Research and Development Foundation for sale only. The publication information can be obtained through "http://www.ardf.org.tw" in Chinese only.
      3. The Special requirements issued by SFC named "Guidelines Governing the Preparation of Financial Reports by Securities Issuers" can be reached through " http://eng.selaw.com.tw" in english as mentioned in Question 34.a.


      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan)


    95. For Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      It's a government body.

      b. Name of standards

      "Guidelines Governing the Preparation of Financial Reports by Securities Issuers"


    96. How many voting members does the standard-setting body have?
      N/A. It's a governmrnt body.


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      N/A. It's a government body. In order to be qualified as a government officers, they should pass the national examination.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      N/A. It's a government body. In order to be qualified as a government officers, they should pass the national examination.

      Please note that Question 100 is not applicable in this sector. The answer for Question 101 should be 44 years, the same as Question 50. Howvevr, the maximun number provided is 20.


    100. What is the term of appointment for members?
      1 Year(s)


    101. For how many years has the standard-setting body been in existence?
      20 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      1

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      1.0



    103. To what entity is the standard-setting body accountable?
      Ministry of Finance


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The draft rules or regulations will be initiated by a responsible officer and then discussed within the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan. The significant rules or regulations will be made public for comment before its finalization. The final revised editions will be announced on the web site of the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.

    2. accessibility of meetings (i.e., public or private)

      The meeting is private unless a publc hearing is arranged.

    3. approval process for final standards (i.e., majority required to approve final standards)

      As mentioned in a. above, the draft rules or regulations will be initiated by a responsible officer and then discussed within the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.

    4. other relevant due process activities

      N/A

      Question 105 is not applicable in this sector.


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      1 Day(s)


    Section 9B -- Standard-Setting (Accounting Research and Development Foundation (Foundation))


    95. For Accounting Research and Development Foundation (Foundation), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      It's non profit-seeking organization. The R.O.C GAAP are established by the Accounting Standard Committee under the Accounting Research and Development Foundation.

      b. Name of standards

      Generally Accepted Accounting Principles (GAAP)


    96. How many voting members does the standard-setting body have?
      14


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The criterias include best person for the job, sector of the profession, private and public members, academic, etc.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      These members are appointed by the chief committee of the Accounting Standard Committee, who commissioned by the Board of the "Accounting Research and Development Foundation".


    100. What is the term of appointment for members?
      3 Year(s)


    101. For how many years has the standard-setting body been in existence?
      20 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      54,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      33.5



    103. To what entity is the standard-setting body accountable?
      No, as the foundation is a non profit-seeking organization.


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The draft standards will be made public for comment before its finalization. The final revised standards will be announced on the web site of the Foundation. The hard copy is also available for sale at the same time.

    2. accessibility of meetings (i.e., public or private)

      The meeting is private unless a public hearing is scheduled.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority required to approve the final standards.

    4. other relevant due process activities

      N/A


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      13 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      The Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan is responsible for the preparation and auditing of the financial reports in accordance with the relevent regulations. In the event of non-compliance with relevant regulations, some disciplinary action will be taken by the SFC.

      According to Article 37 of our Securities and Exchange Law, the relevant regulations are:

      Permission from the Competent Authority (Securiteis and Futures Committee) is required for a certified public accountant to audit and certify the financial reports of public companies.
      Except as otherwise provided by the Certified Public Accountant Law or other laws, a certified public accountant conducting audit and certification shall do so in compliance with the audit and certification rules promulgated by the Competent Authority.
      Depending upon the seriousness of mistake or omission committed by a certified public accountant in the certification of the financial reports, the Competent Authority may impose any of the following sanctions:
      1.warning.
      2.suspension from practicing under this Law for a period of two years.
      3.revocation of his/her certification permission.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      To regulate the business of the certified public accountants and to enhance their professional standards.

      The major activities are to monitor whether the auditing services provided to the public company is in compliance with GAAS and other special additional requirements as issued by the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.


    2. accounting and auditing standard-setting

      Besides the GAAP and GAAS, the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan issues special additional requirements relevant to preparation and auditing financial reports relating to public companies.

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      According to Article 36 of the Securities and Exchange Law, within four months following the close of each year, an issuer under this law shall announce to the public and SFC financial reports which have been duly audited by a certified public accountant, approved by the board of directors, and recognized by the supervisors (similar to the working of an audit comittee of a listed company in the US). In addition, audited semi-annual and reviewed quarterly reports should also be announced to the public and filed with the SFC within a specific period.



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Taiwan Stock Exchange
      Taiwan Over -The-Counter Securities Market



    Section 10B -- Stock Exchange
    Taiwan Stock Exchange Details


    110. For Taiwan Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      According to the Operating Rules of the Taiwan Stock Exchange Corporation, when the following conditions occurred, the Corporation should suspend the trading of such securities, or such company may apply to terminate its listing: (1)failure to produce and register and publicly announce financial reports, or (2)the financial report which is publicly announced and registered pursuant to Article 36 of the Securities and Exchange Law was not produced pursuant to relevant laws and regulations and generally accepted accounting principles, such violations were serious and corrections or rewrites were not made within the specified time period; or the accountant auditing the publicly announced and registered semi-annual or annual financial statement was unable to render an opinion or renders a adverse opinion.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Please see a. above.

    3. How enforcement actions are administered.

      1. Financial reporting- The company will be punished with a fine or suspended from the trading of its securities in the stock exchange market, or such company may apply to terminate its listing. 2. For auditing- The certified public accountant will be punished with a fine, imprisonment, warning, reprimand, suspension of practice for a period of time, or expulsion depending on the materiality of the breach.


    Section 10B -- Stock Exchange
    Taiwan Over -The-Counter Securities Market Details


    110. For Taiwan Over -The-Counter Securities Market, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      According to the Operating Rules Governing Securities Trading on Taiwan Over-The-Counter Markets, it has the same regulation as mentioned under Taiwan Stock Excange in Question 110.a.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Please see a. above.

    3. How enforcement actions are administered.

      According to the Operating Rules Governing Securities Trading on Taiwan-Over-The-Counter Markets, it has the same regulation as mentioned under Taiwan Stock Exchange in Question 110.c.



    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      The authority that regulate the banks and similar institutions is the Bureau of Monetary Affairs, Ministry of Finance. However, their regulations are focused on business operations, the special regulations regarding the preparation of financial statements for such entities are still required by the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      As mentioned in Question 108, the competent authority for accounting and auditing activities for such entities is Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      N/A, as the competent Authority of the audit profession is the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.

    2. accounting and auditing standard-setting

      As mentioned above, the GAAP, GAAS and other special requirements relative to the preparation and auditing of financial statements are established by the Accounting Research and Development Foundation and Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan, respectively. However, the Bureau of Monetary Affairs, Ministry of Finance will be consulted during the process.

    3. review of financial statements prepared by listed entities

      Banks are responsible to report their financial reports to the Bureau of Monetary Affairs, Ministry of Finance, however, Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan will conduct the actual monitoring, to examine whether the preparation and auditing of the financial statements comply with relative regulations.

    4. enforcement of accounting, reporting and auditing requirements

      As mentioned above, Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan will conduct the actual monitoring function: 1. Financial reporting- The company will be punished with a fine or suspended from trading of its securities in the stock exchange market, or such companies may apply to terminate its listing. 2. For auditing- The certified public accountant will be punished with a fine, imprisonment, warning, reprimand, suspension of practice for a period of time, or expulsion depending on the materiality of the breach.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      The authority that regulate the investment banks is Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan. The special regulations regarding the preparation of financial statements for such entity are also issued by Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Securities and Exchange Law


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      The competent Authority of the audit profession is the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan.

    2. accounting and auditing standard-setting

      As mentioned above, the GAAP, GAAS and other special requirements relative to the preparation and auditing of financial statements are established by the Accounting Research and Development Foundation and the Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan, respectively.

    3. review of financial statements prepared by listed entities

      Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan will conduct the actual monitoring function to examine whether the preparation and auditing of the financial statements comply with the relevant regulations.

    4. enforcement of accounting, reporting and auditing requirements

      As mentioned above, Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan will conduct the actual monitoring function: 1. Financial reporting- The company will be punished with a fine or suspended from the trading of its securities in the stock exchange market, or such companies may apply to terminate its listing. 2. For auditing- The certified public accountant will be punished with a fine, imprisonment, warning, reprimand, suspension of practice for a period of time, or expulsion depending on the materiality of the breach.



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      The responsible authority is the Department of Insurance, Ministry of Finance. Besides the GAAP in Taiwan, The authority also announces the guidelines for preparation of the financial reports of such companies prescribed in accordance with the Insurance Law.


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Insurance Law


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      The competent Authority of the audit profession is Ministry of Finance (MOF), a government body. However, if the insurance companies are public companies, then Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan will conduct the actual monitor function.

    2. accounting and auditing standard-setting

      As mentioned above, the GAAP, GAAS and other special requirements relative to the preparation of financial statements are estibalished by the Accounting Research and Development Foundation and Department of Insurance, MOF, respectively.

    3. review of financial statements prepared by listed listed entities

      Insurances companies are responsible to report their financial reports to the Department of Insurance. However, if the insurance companies are public companies, then Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan will conduct the actual monitoring function to examine whether the preparation and auditing of the financial statements comply with the relevant regulations.

    4. enforcement of accounting, reporting and auditing requirements

      The enforcement body is MOF. 1. Financial reporting- For companies, the consequences are punishment with a fine or suspension of trading of its securities in the stock exchange market, or such companies may apply to terminate its listing. 2. For auditing- The certified public accountants will be punished with a fine, imprisonment, warning, reprimand, suspension of practice for a period of time, or expulsion depending on the materiality of the breach.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      N/A


    122. What is the source of Legal authority of each regulatory authority?
      N/A


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      N/A

    2. accounting and auditing standard-setting

      N/A

    3. review of financial statements prepared by listed listed entities

      N/A

    4. enforcement of accounting, reporting and auditing requirements

      N/A



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      Several teams are built and organized under the instruction of Taiwan CPA associate to perform the reviews. The members of the teams come from academic and best persons in CPA practice.



    125. Under what authority does the organization conduct the program of quality assurance review?
      Self-regulatory conducts by Taiwan CPA associate.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Several teams are built and organized under the instruction of Taiwan CPA associate to perform the reviews. The members of the teams come from academic and best persons in CPA practice.



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Ministry of Finance is the competent authority prescribed in the Certified Public Accountants Law.


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    134. What is the term of appointment for members?
      Year(s)


    135. For how many years has the body been in existence?
      Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?



    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      Day(s)



     

     

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