Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets Article 33

Under any of the following circumstances, the competent authority may order a service enterprise to make improvements within a prescribed time limit, or where necessary, to engage a CPA to conduct a special audit of its internal control system and obtain an audit report and submit it to the competent authority for recordation:1. Failure to document its internal control system.2. Failure to appoint qualified personnel as full-time internal auditors or to appoint them in an appropriate number.3. Failure to file a report within a prescribed time limit on, or fail to scrupulously execute, its annual audit plan.4. Failure to file a report within a prescribed time limit on the actual execution of its annual audit plan.5. Failure to file a report within the prescribed time limit on the correction of any deficiency or irregularity of the internal control system identified in an audit.6. Failure to duly conduct self-assessment of its internal control system or to prepare a Statement on Internal Control.7. Serious instance of failure to correct a deficiency of the internal control system pursuant to the internal control recommendations issued by a CPA.8. Serious instance of false external financial reporting or violating a law, regulation, or bylaw.9. Any material fraud or suspicion of fraud.10. Other condition where the competent authority deems a special audit to be necessary.