Insufficient Information Summary

Listed and non-listed companies are required to comply with the Taiwanese Statements of Auditing Standards developed by the Auditing Standards Committee (ASC) of the Accounting Research and Development Foundation of Taiwan. A 2007 National Federation of Certified Public Accountants Associations (NFCPAA) self-assessment explained that the law requires the use of national standards with no reference to the International Auditing and Assurance Board (IAASB) pronouncements. The self-assessment, however, noted that the NFCPAA works together with the ASC to help incorporate IAASB pronouncements into Taiwanese requirements and holds seminars on IAASB pronouncements to disseminate information on the significance of international standards. Nevertheless, there is insufficient further information publicly available that directly addresses Taiwan's compliance with the International Standards on Auditing promulgated by the IAASB.

General Overview

As stated in the 2007 National Federation of Certified Public Accountants Associations (NFCPAA) self-assessment, audits in Taiwan are conducted in accordance with the Statements of Auditing Standards (SASs) developed by the Auditing Standards Committee that functions under the Accounting Research and Development Foundation (ARDF). There is insufficient information on compliance of SASs with the International Standards on Auditing (ISAs) promulgated by the International Auditing and Assurance Standards Board (IAASB). However, the self-assessment notes that the NFCPAA, together with the ARDF, is working on including the IAASB pronouncements into Taiwan auditing requirements and disseminates information on the significance of international standards. The self-assessment further states that the NFCPAA issues ethics requirements which were last amended in 2003. The NFCPAA is a self-regulatory, not-profit professional organization and is listed as a member on the International Federation of Accountants website.

According to the description of the regulatory and standard-setting framework provided in the 2004 NFCPAA self-assessment, the Company Law requires private companies to have their annual financial statements audited in accordance with SASs and certified by a certified public accountant (CPA) if the equity of a company exceeds NTD30 million. Listed companies, under the Securities and Exchange Law, must also have their annual financial statements audited in accordance with SASs and certified by a CPA. In addition to this requirement, quarterly financial reports of listed companies must be reviewed by a CPA. Listed entities must also comply with the Regulations Governing Approval of Certified Public Accountants to Audit and Attest to the Financial Reports of Public Companies issued by the Securities and Futures Bureau (SFB) of the Financial Supervisory Commission (FSC). Permission from the SFB is required for a CPA to audit and certify the financial reports of public companies. Sanctions are in place for non-compliance and, as explained in the report, in accordance with the Certified Public Accountants Act, the SFB can issue a warning, suspend from practicing for a period of two years or revoke certification of a CPA. The SFB also establishes financial reporting requirements for banks and similar institutions. Insurance companies are subject to additional reporting requirements set by the Insurance Bureau of the FSC.

The Principles

IIISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing (effective 2009)

There is insufficient publicly available information as to Taiwan's compliance with this principle.

IIISA 210 Agreeing the Terms of Audit Engagements (effective 2009)

According to the summary of SAS 27 Terms of Audit Engagement, this standard is effective for periods beginning after February 22, 2000. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 220 Quality Control for an Audit of Financial Statements (effective 2009)

According to the summary of SAS 44 Quality Control for Audits of Historical Financial Information, this standard is effective for periods beginning after January 1, 2008. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 230 Audit Documentation (effective 2009)

According to the summary of SAS No. 45 Audit Documentation, the standard was issued by the ASC on February 26, 2008 effective for periods commencing on or after July 1, 2008. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements (effective 2009)

According to the summary of SAS 14 Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements, this standard was superseded by SAS 43. Per the April 2007 IAS Plus update, SAS 43 was issued on September 1, 2006 and became effective for audits of financial statement for periods ending on or after December 31, 2006. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements (effective 2009)

According to the summary of SAS 29 Consideration of Laws and Regulations in an Audit of Financial Statements, this standard is effective for periods beginning after December 31, 1996. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 260 Communications of Audit Matters with Those Charged With Governance (effective 2009)

According to the summary of SAS 39 Communications of Audit Matter With Those Charged With Governance, this standard is effective for periods beginning after June 30, 2004. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 300 Planning an Audit of Financial Statements (effective 2009)

According to the summary of SAS No. 47 Planning an Audit of Financial Statements, , the standard was issued by the ASC on October 1, 2009 effective for periods commencing on or after January 1, 2010. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (effective 2009)

There is insufficient publicly available information as to Taiwan's compliance with this principle.

IIISA 320 Materiality in Planning and Performing an Audit (effective 2009)

According to the summary of SAS 24 Audit Materiality, this standard is effective for periods beginning after December 31, 1993. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 330 The Auditor’s Procedures in Response to Assessed Risks (effective 2009)

There is insufficient publicly available information as to Taiwan's compliance with this principle.

IIISA 402 Audit Considerations Relating to an Entity Using a Service Organization (effective 2009)

There is insufficient publicly available information as to Taiwan's compliance with this principle.

IIISA 500 Audit Evidence (effective 2009)

According to the summary of SAS 4, Audit Evidence, this standard was issued in August 1984, effective for periods beginning after October 1, 1984. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 501 Audit Evidence—Specific Considerations for Selected Items (effective 2009)

There is insufficient publicly available information as to Taiwan's compliance with this principle.

IIISA 505 External Confirmations (effective 2009)

According to the summary of SAS 38 External Confirmations, this standard is effective for periods beginning after December 31, 2002. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 510 Initial Audit Engagements—Opening Balances (effective 2009)

According to the summary of SAS 21 Initial Engagements - Opening Balances, this standard is effective for periods beginning after December 31, 1999. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 520 Analytical Procedures (effective 2009)

According to the summary of SAS 12 Analytical Procedures, this standard is effective for periods beginning after July 1, 1987. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 530 Audit Sampling (effective 2009)

According to the summary of SAS 12 Analytical Procedures, this standard is effective for periods beginning after July 1, 1987. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 540 Audit of Accounting Estimates (effective 2009)

According to the summary of SAS 22 Audit of Accounting Estimates, this standard is effective for periods ending on or after December 31, 1992. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 545 Auditing Fair Value Measurements and Disclosures (effective 2004, superseded by ISA 540 in December 2009)

According to the summary of SAS 42 Auditing Fair Value Measurements and Disclosures, this standard is effective for periods beginning after January 1, 2006. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 550 Related Parties (effective 2009)

According to the summary of SAS 6 Related Parties, this standard is effective for periods beginning after January 1, 2006. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 560 Subsequent Events (effective 2009)

According to the summary of SAS 30 Subsequent Events, this standard is effective for periods beginning after December 31, 1999. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 570 Going Concern (effective 2009)

According to the summary of SAS 16 Going Concern, this standard is effective for periods beginning after December 31, 1999. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 580 Written Representations (effective 2009)

According to the summary of SAS 7 Management Representations, this standard is effective for periods beginning after December 31, 1985. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) (effective 2009)

According to the summary of SAS 15 Using the Work of Another Auditor, this standard is effective for periods beginning after December 31, 1999. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 610 Using the Work of Internal Auditors (effective 2009)

According to the summary of SAS 25 Considering the Work of Internal Auditing, this standard is effective for periods beginning after December 31, 1993. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 620 Using the Work of an Auditor’s Expert (effective 2009)

According to the summary of SAS 20 Using the Work of an Expert, this standard is effective for periods beginning after December 31, 1990. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 700 Forming an Opinion and Reporting on Financial Statements (effective 2009)

According to the summary of SAS 33 Auditor's Report on Financial Statements, this standard is effective for periods beginning after December 31, 1999. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 705 Modifications to the Opinion in the Independent Auditor’s Report (effective 2009)

There is insufficient publicly available information as to Taiwan's compliance with this principle.

IIISA 710 Comparative Information—Corresponding Figures and Comparative Financial Statements (effective 2009)

According to the summary of SAS 41 Comparatives, this standard is effective for periods beginning after January 1, 2005. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 720 The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements (effective 2009)

According to the summary of SAS 40 Other Information in Documents Containing Audited Financial Statements, this standard is effective for periods beginning after January 1, 2005. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

IIISA 800 Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks (effective 2009)

According to the summary of SAS 28 Auditor's Report on Special Purpose Audit Engagements, this standard is effective for periods beginning after December 31, 1999. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.