[Asia Economy Reporter Ji-hwan Park] The Financial Supervisory Service (FSS) announced on the 6th that it will hold the '2021 Online Accounting Issues Briefing' on the 20th. This briefing is jointly hosted by the FSS and the Korean Institute of Certified Public Accountants.
At the briefing, the FSS plans to share current accounting supervision issues and supervisory directions. It will provide guidance on key points to note during year-end audits, including major findings from review and inspection results, key audit accounting issues, and precautions related to auditor appointment and designation. Efforts will also be made to create a communication opportunity between supervisory authorities and the accounting industry by collecting difficulties and current issues related to audit work and systems.
Accounting issues and precautions to be focused on next year will also be introduced. The FSS plans to explain four key accounting issues to be inspected in 2022: impairment of investment securities in subsidiaries and affiliates, revenue recognition for related parties, recognition and measurement of financial liabilities, and disclosure of operating profit and operating segment information, along with related error cases and precautions.
Furthermore, the FSS will explain major deficiencies, precautions, and best practices from auditor inspections and urge efforts to improve audit quality through thorough operation of quality control systems.
An FSS official stated, "We will check whether accounting firms have properly established and operated quality control systems and whether individual audit reports comply with auditing standards."
The FSS plans to respond promptly to inquiries made through the Financial Supervisory Service Accounting Portal Q&A.
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