I、The purpose and principle of CPA firm inspection
Article 19 of the “Certified Public Accountant (CPA) Act” provides as follows: "In order to safeguard the interests of the general public and promote the public interests, the competent authority may dispatch personnel to inspect the operations and operations-related financial status of a CPA firm that has been approved to provide attestation services to public companies. A CPA firm may not avoid, impede, or refuse to cooperate with such an inspection." The purpose of such inspections is to ensure high audit quality, enhance the internal quality control of CPA firms, and reduce the potential risks of audit failure. Through the inspection mechanism and promotion of high quality auditing, the FSC aims to increase public confidence in the audit opinions of accountants and financial reporting, and has no punitive intent. If an accountant is found to have made material error or committed negligence in attestation on financial reports, or seriously violated Article 61 of the CPA Act to the extent of damaging the accountant’s reputation, the FSC will transfer the case to the CPA Discipline Committee for disciplinary actions.
II、Improvement in audit quality
The FSC will propose a draft General Inspection Report within 1-2 months after the on-site inspection. The inspected firms are required to provide written opinions on inspection observations and findings within 30 days, submit improvement projects to FSC within 2 months and continue to track the improvement.
III、General Inspection Report
Visitor： 1711 Update： 2020-10-13