Chapter 3 Inspection of Internal Control System
Section 3 Audit of Specialized Electronic Payment Institutions by Accountants
If the annual financial report of a specialized electronic payment institution is audited and certified by an accountant, the institution shall also engage the accountant to conduct an audit of its internal control system. The accountant shall also express an opinion on the accuracy of reports submitted by the specialized electronic payment institution to the competent authority, and the appropriateness of the implementation status of internal control system and regulatory compliance system.
The competent authority may request the specialized electronic payment institution to authorize an accountant to conduct a targeted examination of its personal data protection and AML/CFT mechanisms.
The audit fees for the accountant shall be negotiated and agreed between the specialized electronic payment institution and the accountant, and paid by the specialized electronic payment institution.
Where necessary, the competent authority may invite a specialized electronic payment institution and its appointed accountant to discuss audit-related matters under the preceding article. If the competent authority finds the accountant appointed by the specialized electronic payment institution not sufficiently competent for the audit work, the competent authority may order the specialized electronic payment institution to replace its accountant and appoint another accountant to re-conduct the audit work.
When an accountant conducts an audit specified in Article 27 herein, the accountant shall inform the competent authority immediately when the audited specialized electronic payment institution has any of the following situations:
1. During the course of audit, the specialized electronic payment institution fails to provide the accountant with requested reports, certificates, account books and meeting minutes, or refuses to make further explanation on the inquiries made by the accountant, or the accountant is unable to continue the audit work as constrained by other objective circumstances.
2. There are false, forged or missing data of serious nature in its accounting or other records.
3. Its assets are insufficient to pay its debts or its financial condition deteriorates significantly.
4. There is evidence indicating that certain transactions may cause great damage to its net asset.
If an audited specialized electronic payment institution has a situation provided in Subparagraphs 2 to 4 of the preceding paragraph, an accountant shall submit in advance a summarized report based on the audit results to the competent authority.
When a specialized electronic payment institution appoints an accountant to conduct audit under Article 27 herein, the institution shall submit the accountant's audit report of the previous year to the competent authority for record before the end of April every year. The audit report shall describe at least the scope, basis, procedure, and results of the audit.
When the competent authority inquires the contents of the audit report, the accountant shall provide full and accurate information and elaboration.