Announcement of the Operation Results of the 'Digital Audit Technology Adoption Support TF'
The Financial Supervisory Service (FSS) and the accounting industry have decided to revise the audit standards and quality control standards to promote digital audit technology. They aim to lower the digital audit barriers for small and medium-sized accounting firms and expand promotion targeting audited companies.
On the 23rd, the FSS announced that it set these initiatives as a result of operating the "Task Force (TF) for Supporting the Introduction of Digital Audit Technology."
Until last month, the FSS held 10 meetings with digital audit personnel from accounting firms, related organizations, and academic experts to operate the TF.
The first major initiative is to establish grounds for utilizing digital audits and clarify quality control procedures. From the third quarter of this year, the Korean Institute of Certified Public Accountants (KICPA) will push for the revision of Audit Standard 315 (Risk Assessment, etc.) and the introduction of international quality control standards. Starting next year, they will also prepare audit FAQs and guidance related to digital audits, as well as quality control system guidelines related to digital audits. They plan to begin revising Audit Standard 500 (Audit Evidence) from 2026.
An FSS official explained, "Regarding Audit Standard 315, the International Auditing and Assurance Standards Board (IAASB) has completed the revision, but Audit Standard 500 is scheduled to be revised internationally in 2026, so the timing for revision differs."
Reflection of standard audit hours will also be considered. Currently, standard audit hours do not separately reflect the effect of audit time changes due to the use of digital audit technology, raising concerns about low incentives for investing in digital audit technology. KICPA is conducting research for revising the standard audit hours.
They will reduce gaps between accounting firms and foster professional personnel. Support measures to alleviate initial investment burdens will be prepared, and through events such as exhibitions, small and medium-sized accounting firms will be enabled to access digital audits more easily.
Audit data will also be standardized. Currently, there is no audit data standard, making it difficult to effectively utilize digital audit technology. Under KICPA’s leadership, an expert TF including accounting firms and companies will be formed to promote audit data standardization.
There was also a call for raising awareness among audited companies and others. Most companies have low understanding of digital audits and do not feel the benefits. Seminars targeting companies such as the Korea Listed Companies Association and the KOSDAQ Association will be held to provide explanations. Cases of digital audit utilization will also be distributed.
The FSS stated, "By promoting the tasks derived through discussions with various experts, we expect to establish an institutional foundation related to the use of digital audits and raise awareness among companies and accounting firms, thereby activating digital audits."
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