Audit Conducted for 14 Accounting Firms
The Financial Supervisory Service (FSS) will conduct reviews and audits of the financial statements of 160 listed companies this year. Alongside this, it plans to carry out auditor inspections on 14 accounting firms.
The FSS announced the "2024 Accounting Review and Audit Operation Plan" on the 28th.
The FSS will select sample review targets considering pre-announced accounting issues such as allowance for doubtful accounts, convertible bond (CB) call options, long-term construction revenue, contingent liabilities, and whether companies have gone over 10 years without audits. Companies found to have violations such as accounting error corrections will be designated for violation reviews.
Additionally, the FSS will conduct auditor inspections on 14 accounting firms, including 8 firms whose three-year audit cycle has come due and 5 firms selected based on market influence and quality control standards evaluation results.
During audits, the FSS explained that it will focus on checking vulnerable areas of accounting firms such as ▲ operation of integrated management systems including personnel, funds, and accounting ▲ establishment of performance evaluation and compensation systems ▲ establishment of policies to ensure independence compliance.
The FSS stated that to ensure audit operations are conducted transparently and consistently, it will revise manuals and designate dedicated personnel for pre-review and review of major cases involving intentional misconduct or fines exceeding 2 billion KRW, as well as operate a mandatory review period (one week). Furthermore, it plans to increase the proportion of companies with a high possibility of intentional accounting fraud and those with significant market influence, and actively conduct on-site audits.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
