Hangonghoe Announces Revision of Standard Audit Hours... "Calculated Considering Individual Company Characteristics"

[Asia Economy Reporter Park Jihwan] The Korean Institute of Certified Public Accountants announced on the 18th that it has finalized the revision of the standard audit hours to allow for flexible calculation.

The standard audit hours are based on the amended External Audit Act, which has been in effect since November 2017. It refers to the minimum audit time that auditors performing external audit work must invest to improve the quality of audit tasks.

The revision includes calculating the standard audit hours by considering the individual characteristics and unique environment of each company and removing the additional rate for internal accounting control system audits. Additionally, it includes the removal of upper and lower limits on standard audit hours, applying the same phased application rate as last year, and establishing grounds for calculating standard audit hours when laws and accounting/audit standards change.

The revision will apply to fiscal years beginning on or after January 1 of this year.

Kim Youngsik, President of the Korean Institute of Certified Public Accountants, emphasized, "The revised standard audit hours were passed unanimously after fully accepting the opinions of auditors and companies and thorough discussions. We will strive together with companies and information users to ensure the standard audit hours system operates more effectively."