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 as to 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 Guidelines Governing the Preparation of Financial Reports by Securities Issuers and the Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountants 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

ISA 200 Objective and General Principles Governing an Audit of Financial Statements (effective 2006)

II

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

ISA 210 Terms of Audit Engagements (effective 2006)

II

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.

ISA 220R Quality Control for Audits of Historical Financial Information (effective 2005)

II

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.

ISA 230R Documentation (effective 2006)

II

According to the summary of SAS 3 Documentation, this standard is effective for periods beginning after July 31, 1985. Per the April 2007 IAS Plus update, Auditing Standard No. 44 Audit Documentation was under the first reading starting December 26, 2006. No further information is publicly available.

ISA 240 The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements (effective 2004)

II

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.

ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements (effective 2004)

II

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.

ISA 260 Communications of Audit Matters With Those Charged With Governance (effective 2004)

II

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.

ISA 300 Planning an Audit of Financial Statements (effective 2004)

II

According to the summary of SAS 10 Planning an Audit of Financial Statements, this standard is effective for periods beginning after December 31, 1986. However, there is insufficient publicly available information as to compliance of this standard with the relevant ISA.

ISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (effective 2004)

II

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

ISA 320 Audit Materiality (effective 2004)

II

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.

ISA 330 The Auditor’s Procedures in Response to Assessed Risks (effective 2006)

II

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

ISA 402 Audit Considerations Relating to Entities Using Service Organizations (effective 2004)

II

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

ISA 500 Audit Evidence (effective 2004)

II

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.

ISA 501 Audit Evidence - Additional Considerations for Specific Items (effective 2004)

II

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

ISA 505 External Confirmations (effective 2004)

II

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.

ISA 510 Initial Engagements — Opening Balances (effective 2004)

II

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.

ISA 520 Analytical Procedures (effective 2004)

II

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.

ISA 530 Audit Sampling and Other Selective Testing Procedures (effective 2004)

II

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.

ISA 540 Audit of Accounting Estimates (effective 2004)

II

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.

ISA 545 Auditing Fair Value Measurements and Disclosures (effective 2004)

II

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.

ISA 550 Related Parties (effective 2004)

II

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.

ISA 560 Subsequent Events (effective 2006)

II

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.

ISA 570 Going Concern (effective 2004)

II

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.

ISA 580 Management Representations (effective 2004)

II

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.

ISA 600 Using the Work of Another Auditor (effective)

II

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.

ISA 610 Considering the Work of Internal Auditing (effective 2004)

II

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.

ISA 620 Using the Work of an Expert (effective 2005)

II

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.

ISA 700 The Auditor’s Report on Financial Statements (effective 2006)

II

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.

ISA 701 Modifications to the Independent Auditor's Report (effective 2006)

II

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

ISA 710 Comparatives (effective 2004)

II

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.

ISA 720 Other Information in Documents Containing Audited Financial Statements (effective 2004)

II

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.

ISA 800 The Auditor’s Report on Special Purpose Audit Engagements (effective 2006)

II

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.