Samjong KPMG Publishes Practical Guide for New Audit Committee Members

Covering Audit Systems, Financial Statement Interpretation, and Practical Responsibilities

Samjong KPMG announced on May 21 that it has published the "ACI Special Report" to help new audit committee members and auditors understand audit systems and adapt to practical work.

This report is organized around three main themes: understanding the role of the audit (committee), understanding financial statements, and understanding the responsibilities and practical work of the audit (committee).

First, the section on "understanding the role of the audit (committee)" covers key points that audit committee members need to be familiar with, including the background and establishment criteria for introducing the audit committee system to ensure transparency and reliability in corporate management, its relationship with external audits, required expertise and main authorities, the process for submitting audit reports, and the evaluation and reporting process for internal accounting management systems.

The section on "understanding financial statements" aims to strengthen the accounting interpretation capabilities of audit committee members by providing explanations of the characteristics of each component of financial statements according to accounting standards and indicators for analyzing consolidated financial statements. This is intended to help establish a foundation for effectively supervising the accounting transparency of companies.

In addition, the section on "understanding the responsibilities and practical work of the audit (committee)" includes practical, operations-focused content that can be directly applied to the actual management of audit committees, such as the annual audit committee activity schedule and main tasks, the responsibilities and duties of directors, and directors and officers liability insurance.

Kim Minkyu, Deputy CEO and leader of the Samjong KPMG Audit Committee Institute (ACI), stated, "This report will provide practical benchmarks for audit committee members as they carry out their roles," adding, "We will continue to support the establishment of the audit committee system and enhancement of professionalism through various support activities in the future."

Meanwhile, Samjong KPMG established the "Audit Committee Institute" in 2015, the first in the industry, to promote the activation of the audit committee system and strengthen the substance of audit roles, and published the "Audit Committee Handbook," also the first of its kind in Korea, in the same year. Recently, the handbook has also been made available in e-book format, and the company continues to provide a variety of support activities, such as holding annual audit committee seminars.