This is a reminder to licensed certified auditors and audit firms of the requirement under the Audit Law and the stipulations of its Article 100. Specifically, when a licensed certified auditor or an audit firm, conducting an audit of a public interest entity (PIE) suspects of irregularities, it is required to inform the PIE and request investigative actions and measures.
If the PIE does not investigate the irregularities observed, the licensed certified auditor or the audit firm in question must notify the Commission. Therefore, the licensed certified auditor or the audit firm are required to notify the PIE’s Audit Committee, the Chamber of Authorized Auditors and the Commission in the following cases, when there exists:
1) Significant violation of laws, regulations and administrative guidelines that specifically affect the governance of a public-interest entity;
2) Significant compromise or doubt of the ability of the public-interest entity continuing as a going concern;
3) Refraining from issuing opinions on the financial statements or issuing an adverse opinion.