Asiana Airlines Receives 'Adverse' Opinion on Internal Accounting Control System Review

Audit Opinion is 'Unqualified'... Not Designated as a Management Item

[Asia Economy Reporter Minji Lee] Asiana Airlines received an 'adverse' opinion on its internal accounting control system.

[Image source=Yonhap News]

According to the Financial Supervisory Service's electronic disclosure system (DART) on the 26th, Asiana Airlines announced that the review opinion on the internal accounting control system based on the individual financial statements for the 2019 fiscal year was adverse.

As a result, Asiana Airlines has been pointed out again this time for deficiencies in its internal accounting control system, following the previous fiscal year.

The internal accounting control system is an internal control system operated by a company to prepare and disclose financial statements reliably in accordance with accounting standards. Listed companies must have their internal accounting control system reviewed by auditors, and listed companies with assets exceeding 2 trillion won must undergo an audit.

However, Asiana Airlines received a 'fair' audit opinion and was not designated as a management item. Listed companies on the KOSPI market do not face separate market measures if they receive an adverse review opinion on internal accounting control issues but have a fair audit opinion.

Previously, during the audit process of the 2018 financial statements last year, Asiana Airlines unusually received a 'qualified' audit opinion among large business groups but corrected it to a fair opinion within four days.