The Audit Committee Designates Auditor for 'TS Tech' Violating Accounting Standards

[Asia Economy Reporter Oh Ju-yeon] The Securities and Futures Commission under the Financial Services Commission held its 12th meeting on the 27th and decided to take measures such as designating an auditor and recommending the dismissal of the responsible executive against TSTech for preparing and disclosing financial statements in violation of accounting standards.

According to the Securities and Futures Commission on that day, TSTech, an unlisted company manufacturing automobiles and trailers, was found to have underreported accounts receivable and advance payments with uncertain collectibility due to long-term accumulated losses (complete capital erosion) of its clients and the effective suspension of business operations, without setting reasonable and adequate allowance for doubtful accounts.

The Securities and Futures Commission stated that the Korean Institute of Certified Public Accountants has already decided to impose restrictions on audit work against the auditor who violated auditing standards while auditing TSTech's financial statements.