The Audit Committee Recommends Dismissal of Executives at Doam Engineering for 'Accounting Violations'

[Asia Economy Reporter Jang Sehee] The Securities and Futures Commission (SFC) under the Financial Services Commission resolved disciplinary measures against Doam Engineering and others for preparing financial statements in violation of accounting standards at its regular meeting on the 1st.

According to the SFC, Doam Engineering understated the allowance for doubtful accounts on accounts receivable and short-term loans and overstated intangible assets during the 2016 and 2017 settlements.

The SFC imposed measures on Doam Engineering, an unlisted company, including an 8-month restriction on securities issuance, a recommendation to dismiss the responsible executive (CEO), and a two-year designation of an auditor.

Additionally, the SFC decided to impose a fine of 35.2 million KRW on Sehwa IMC, a KOSPI-listed company, for delayed submission of its 2018 semiannual report. Similarly, for iToxie, a KOSDAQ-listed company that also delayed submission of its semiannual report, the SFC decided to restrict securities issuance for one month.

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