Financial Supervisory Service, 2023 Online External Audit System Briefing Session

[Asia Economy Reporter Lee Seon-ae] The Financial Supervisory Service (FSS) announced on the 12th that it will hold the "2023 Online External Audit System Briefing" jointly with the Korea Chamber of Commerce and Industry via a non-face-to-face (YouTube) format. The briefing aims to enhance understanding of the external audit system and prevent violations of the External Audit Act. Accordingly, the FSS plans to introduce criteria for determining external audit targets, procedures for appointing auditors, and methods for reporting auditor appointments.

The briefing is scheduled for the 30th and will be targeted at corporate practitioners and external auditors. FSS staff responsible for related tasks will provide guidance on the auditor appointment and designation system as well as key inquiries.

First, the briefing will explain changes regarding the adjustment of criteria for large unlisted companies (assets from 100 billion KRW to 500 billion KRW or more) as announced in the amendment to the Enforcement Decree of the External Audit Act, clearly outlining the implementation plan for the revised regulations.

Additionally, it will cover major aspects of the auditor designation system, including reasons for designation (ex officio and periodic designation), designation procedures, and requests for re-designation. It will also provide guidance on improvements in the auditor designation methods for companies and accounting firms according to the amended external audit regulations.

For key inquiries, the briefing will offer Q&A-style guidance on precautions when appointing auditors by company type, the composition and operation of the auditor appointment committee, and related matters.

An FSS official stated, "This briefing will be conducted through the Financial Supervisory Service and Korea Chamber of Commerce and Industry YouTube channels, so anyone can freely watch it," adding, "If you have any questions, please inquire through the Q&A section on the FSS website, and we will respond promptly."