The Audit Committee Designates Elpatec for 'Accounting Standards Violation'

[Asia Economy Reporter Lee Seon-ae] The Securities and Futures Commission under the Financial Services Commission held a regular meeting on the 8th and announced that it has decided on measures such as auditor designation for Elpatec, which prepared and disclosed financial statements in violation of accounting standards.

According to the Securities and Futures Commission, Elpatec did not disclose transactions with related parties in the notes to the financial statements. Accordingly, the Commission decided on measures including imposing a fine on the company, designating an auditor for three years, recommending the dismissal of the CEO, and suspending the CEO's duties for six months. The imposition of the fine will be finally decided by the Financial Services Commission in the future.

Additionally, the Securities and Futures Commission decided on sanctions against the certified public accountant who was negligent in audit procedures related to transactions with related parties, including restrictions on audit work for Elpatec, restrictions on audit work for listed and designated companies, and mandatory training.