The Guidelines Governing the Examination, Endorsement, and Approval of Corporations’ Publicly Issued Financial Reports Submitted by Accountants promulgated by the Securities and Exchange Commission on July 7, 1983, are a mandate authorized by Article 37, Paragraph 1, of the Security Exchange Act.　Article 2 of these guidelines states: “Corporations’ publicly issued financial reports shall be jointly examined and endorsed by at least 2 practicing accountants of established accounting offices”; and Article 4 prescribes the requirements for the organization of accounting offices.　The purposes of these provisions are to ensure the excellence of the system of examination and endorsement for corporations’ publicly issued financial reports submitted by accountants. These provisions are in accordance with the purpose of the authorization made by the act mentioned above and the need to protect the investing public and advance the public interest; thus, they do not contradict the Constitution.　However, since the promulgation of the Guidelines, security exchanges have been continuously evolving, and the Regulations Governing the Review and Approval of the Qualifications of Accountants has already been revised.　The terms of the former guidelines regarding requirements for the organization of accounting offices by those who acquire the qualification of accountant through review and approval without written examination are different from those of other accountants. Therefore, if the question of whether this differential is still reasonable and necessary should arise, the competent authority may assess and revise it, or directly regulate it by law.

　　　 The Guidelines Governing the Examination, Endorsement, and Approval of Corporations’ Publicly Issued Financial Reports Submitted by Accountants was promulgated by the Securities and Exchange Commission on July 7, 1983, based on the authorization of Article 37, Paragraph 1, of the Security Exchange Act.　Article 2 of the guidelines states: “Corporations’ publicly issued financial reports shall be jointly examined and endorsed by at least 2 practicing accountants of accounting offices.” Article 4 states: “I. Accounting offices shall be composed of at least 3 practicing accountants, where the number of those who passed the Higher Rank Examination for Accountants or passed the interview examination under the Regulations Governing the Review and Approval of the Qualifications of Accountants may not be less than 1/2 of the total number of practicing accountants; the number of those who have at least 3 years auditing experience may not be less than 2 persons. II. The total number of assistant personnel may not be less than 9 persons; the number of those who have the qualification of Article 12, Subparagraphs 1and 2, of the Accountant Act or passed the Higher Rank Examination for Accountants may not be less than 2/3; graduated from an accounting department in a university at the undergraduate or graduate level, or Accounting Auditors may not be less than 1/3 of those assistant personnel. III. The number of junior-level accountants of accounting offices who have not been penalized under the Securities Transaction Act by suspension of performance or of endorsement in the past 2 years, or have not been disciplined by suspension of practice under the Accountant Act shall be at least 3 persons. IV. The accounting offices shall have offices in common.” The purposes of these provisions are to ensure the educational background and experience of each accountant, enhance the quality of endorsement, strengthen his or her credibility before the public, and ensure the excellence of the system of examination and endorsement for corporations’ publicly issued financial reports submitted by accountants.　These provisions are in accordance with the purpose of the authorization made by the Act mentioned above and the need to protect the investing public and advance the public interest; thus, they do not contradict the Constitution.　 However, since the promulgation of the Guidelines, security exchanges have been continuously evolving, and the Regulations Governing the Review and Approval of the Qualifications of Accountants has already been revised.　The terms of the former guidelines regarding the requirements for the organization of accounting offices by those who acquire the qualifications of accountant through review and approval without written examination are different from those of other accountants.　 Therefore, if the question of whether this differential is still reasonable and necessary should arise, the competent authority may assess and revise it, or directly regulate it by law.