The Audit Committee Sanctions 'Shinhwa Silup, Hurim Robot, LMS' for Accounting Violations

[Asia Economy Reporter Park Jihwan] On the 8th, the Securities and Futures Commission held a regular meeting and decided to impose fines on three companies, including Sinhwa Silup, for preparing financial statements in violation of accounting standards.

Sinhwa Silup was sanctioned with a fine of 122.6 million KRW, a 3-year auditor designation, recommendations for dismissal of the responsible executives and auditors, and criminal prosecution of the company and two executives due to allegations of false recognition of accounts receivable and obstruction of external audits.

Hurim Robot was fined 473.5 million KRW, received a 2-year auditor designation, and a penalty of 48 million KRW for failure to recognize derivative financial liabilities, omission of related party notes, and accounting errors related to changes in consolidation scope.

LMS was found to have omitted overseas subsidiaries subject to consolidation, resulting in a 2-month restriction on securities issuance and a 1-year auditor designation.

Additionally, measures such as partial suspension of duties and audit restrictions were decided for accounting firms and certified public accountants who violated auditing standards while auditing company financial statements.