Federation of CPA Associations of Chinese Taiwan

The Federation of CPA Associations of Chinese Taiwan (FCPAACT) shares responsibility for quality assurance (QA) with the Financial Supervisory Commission (FSC), which conducts inspections of auditors of public interest entities and monitors the FCPAACT’s peer review arrangements.

The FCPAACT’s Peer Review Committee administers the practice review program for member firms. The FCPAACT continues to support implementation through continuing professional development activities on quality management, dissemination of common audit findings, and follow-up procedures to monitor the implementation of recommended improvements. The adoption of Taiwan Standard on Quality Management 1 and Taiwan Standard on Quality Management 2 further supports firms in strengthening their internal quality management systems.

However, the FCPAACT has reported that while most requirements of Statement of Membership Obligations 1 are incorporated, certain elements, including alignment of the review cycle with SMO 1 benchmarks, remain outstanding. As a result, the jurisdiction-level QA framework is not yet fully aligned with all SMO 1 requirements. Accordingly, SMO 1 fulfillment is assessed as Review & Improve.

The FCPAACT should continue to work with the FSC to align the review cycle fully with SMO 1 and to demonstrate that the QA system, including monitoring arrangements, fully incorporates all relevant requirements.

Current Status: Review & Improve

The Federation of CPA Associations of Chinese Taiwan (FCPAACT) operates within a jurisdictional framework where initial professional development requirements are established under the Certified Public Accountant Act and administered by the Financial Supervisory Commission (FSC) and the Ministry of Examination. The FCPAACT is responsible for implementing continuing professional development requirements for certified public accountants in accordance with regulations prescribed by the FSC.

The FCPAACT’s Professional Education Committee continues to develop and deliver continuing professional development programs covering technical, professional, and ethics-related topics. Recent regulatory updates, including the introduction of enhanced ethics training requirements effective January 1, 2025, have been incorporated into the FCPAACT’s continuing professional development offerings. The FCPAACT has also strengthened its monitoring and verification processes and maintains disciplinary measures for non-compliance with continuing professional development requirements.

Through these activities, the FCPAACT supports the implementation of jurisdiction-level education requirements and promotes alignment with the International Education Standards for all professional accountants. The framework for initial and continuing professional development is established and applied consistently across the profession, and the FCPAACT demonstrates ongoing support for maintaining professional competence. Accordingly, SMO 2 fulfillment is assessed as Sustain.

Current Status: Sustain

The Federation of CPA Associations of Chinese Taiwan (FCPAACT) operates within a framework where the Financial Supervisory Commission (FSC) is responsible for establishing auditing standards and has delegated standard-setting activities to the Accounting Research and Development Foundation (ARDF). The ARDF issues the Taiwan Standards on Auditing, which are converged with the 2021 International Standards on Auditing.

The FCPAACT continues to support implementation of auditing standards through ongoing continuing professional development programs, technical seminars, and dissemination of updates on new and revised standards. The FCPAACT also monitors developments issued by the International Auditing and Assurance Standards Board and contributes to the standard-setting process by responding to exposure drafts and coordinating with the ARDF to facilitate updates to national standards.

While the FCPAACT demonstrates active engagement in supporting implementation and maintaining awareness of international developments, the jurisdiction has not yet demonstrated adoption of the International Standards on Auditing in effect as of the time of the assessment. As a result, the jurisdiction-level framework is not fully aligned with the requirements of SMO 3. Accordingly, SMO 3 fulfillment is assessed as Review & Improve.

The FCPAACT should continue to work with the FSC and the ARDF to support the timely adoption of the latest International Standards on Auditing and strengthen communication to members on implementation of new and revised standards.

Current Status: Review & Improve

The Federation of CPA Associations of Chinese Taiwan (FCPAACT) is responsible for establishing ethical requirements for certified public accountants under the Certified Public Accountant Act, subject to approval by the Financial Supervisory Commission (FSC). The FCPAACT’s Ethics Code Committee maintains an ongoing process to review updates issued by the International Ethics Standards Board for Accountants and to revise the national Code of Ethics accordingly.

The national Code of Ethics has been revised with reference to the 2018 International Code of Ethics for Professional Accountants (including International Independence Standards), with subsequent updates issued in 2022 and 2023. The FCPAACT supports implementation through continuing professional development programs, ethics-focused seminars, publications, and webinars. All members are required to adhere to the Code, including through formal declarations, and cases of non-compliance are addressed through the investigative and disciplinary system. The FCPAACT also maintains mechanisms for reporting potential breaches and participates in international standard-setting by responding to exposure drafts.

While the latest version of the International Code of Ethics in effect as of the time of the assessment has not been fully adopted, the FCPAACT has established processes to monitor updates and support implementation across the profession. Accordingly, SMO 4 fulfillment is assessed as Execute.

The FCPAACT should continue to work with the FSC to support the timely adoption of the latest International Code of Ethics and ensure that updates are communicated and implemented consistently across the profession.

Current Status: Execute

The Federation of CPA Associations of Chinese Taiwan (FCPAACT) operates within a framework where public sector accounting standards are established under the Accounting Act and issued by the Directorate General of Budget, Accounting and Statistics (DGBAS) of the Executive Yuan. The current public sector accounting framework is based on national standards, including the revised Governmental Accounting Concepts Statements and Governmental Accounting Pronouncement issued in 2019, which refer to International Public Sector Accounting Standards.

The FCPAACT continues to support the development and implementation of public sector accounting standards through its engagement with DGBAS and participation in relevant government committees, including the public sector accounting standards-setting process. The FCPAACT promotes awareness of International Public Sector Accounting Standards developments, encourages members to participate in consultations issued by the International Public Sector Accounting Standards Board, and provides training and guidance for members working in the public sector.

While International Public Sector Accounting Standards have not been adopted in full at the jurisdiction level, the FCPAACT demonstrates ongoing engagement with standard-setting developments and supports implementation through outreach, training, and participation in national processes. The PAO has also contributed to international initiatives, including participation in global assessments of public sector financial reporting practices. Accordingly, SMO 5 fulfillment is assessed as Sustain.

Current Status: Sustain

The Federation of CPA Associations of Chinese Taiwan (FCPAACT) shares responsibility for the investigative and disciplinary (I&D) system with the Financial Supervisory Commission (FSC) under the Certified Public Accountant Act, which establishes the legal framework for investigation, discipline, and appeals for certified public accountants and certified public accountant firms.

The FCPAACT is responsible for investigating alleged misconduct through its internal committees and for recommending disciplinary actions, while the FSC is responsible for final disciplinary decisions, including approval of sanctions and public disclosure. The FCPAACT continues to support implementation through guidance, training seminars, and analysis of disciplinary cases to raise awareness among members and strengthen understanding of professional responsibilities and enforcement processes.

The FCPAACT has conducted a self-assessment of its I&D system against Statement of Membership Obligations 6 and continues to monitor and review its processes. Identified gaps remain in areas such as timeliness of case resolution, transparency of outcomes, independent review mechanisms for complaints, and coordination with external bodies in cases of serious misconduct. These gaps indicate that the jurisdiction-level framework is not yet fully aligned with all SMO 6 requirements.

The FCPAACT should continue to work with the FSC to strengthen the timeliness, transparency, and independence of the I&D system and to ensure full alignment with SMO 6 best practices.

Current Status: Execute

The Federation of CPA Associations of Chinese Taiwan (FCPAACT) operates within a framework where accounting standards are established under the Securities and Exchange Act and endorsed by the Financial Supervisory Commission (FSC), with technical support from the Accounting Research and Development Foundation (ARDF). Publicly accountable entities are required to apply International Financial Reporting Standards (IFRS) as endorsed in the jurisdiction.

The FCPAACT does not have direct responsibility for the adoption of accounting standards but continues to support implementation through continuing professional development programs covering IFRS and Enterprise Accounting Standards. The FCPAACT also contributes to the standard-setting process by collaborating with the ARDF on the review of newly issued standards, developing implementation guidance such as technical Q&As, and providing input on exposure drafts issued by the International Accounting Standards Board. In addition, the FCPAACT participates in international forums to remain informed of developments and promote consistent application of IFRS.

While IFRS are not adopted in full as issued at the jurisdiction level, the FCPAACT demonstrates ongoing and proactive support for implementation and convergence. Given its lack of direct authority over standard adoption and its active engagement in supporting members and influencing the standard-setting process, the FCPAACT is considered to be fulfilling its best-endeavor responsibilities under Statement of Membership Obligations 7. Accordingly, SMO 7 fulfillment is assessed as Sustain.

Current Status: Sustain