Mandatory 'Auditor Appointment' for External Audit Target Companies... 6,800 Added Last Year

Online Briefing on the 8th... Video Posted

On the 8th, the Financial Supervisory Service (FSS) announced that it will hold an online briefing session on the auditor appointment system for companies subject to external audits for the first time, in collaboration with the Korea Federation of SMEs and the Foreign Investment Ombudsman.

On the same day (the 8th), the FSS plans to post a video containing the explanation on the FSS YouTube channel as well as on the websites of the Financial Supervisory Service, Korea Federation of SMEs, and the Foreign Investment Ombudsman.

The video includes information on the entities responsible for selecting auditors, procedures, and reporting guidelines to ensure that companies newly subject to external audits do not suffer disadvantages such as auditor designation.

Companies subject to external audits are joint-stock companies and limited companies with total assets or sales exceeding certain thresholds. In 2023, 6,821 companies became newly subject to external audits, bringing the total number of such companies to 41,212.

Companies newly subject to external audits must appoint an auditor within four months from the start of the business year and report to the Securities and Futures Commission within two weeks after signing the contract. Failure to comply may result in disadvantages such as auditor designation.