Korean Institute of Certified Public Accountants "Strict Measures Against Unfair Audit Fee Demands"

[Asia Economy Reporter Minji Lee] The Korean Institute of Certified Public Accountants announced on the 16th that it will take strong measures, including expulsion from the industry, against companies that unreasonably demand unfair audit fees in relation to the signing of designated audit contracts for the next fiscal year.

On the same day, Chairman Kim Young-sik emphasized, "Accounting reform is not about pursuing the interests of a specific group," and added, "Inappropriate actions such as demanding unfair audit fees severely damage the honor and trust of the vast majority of auditors, so please be especially mindful that strict investigations and measures will be taken."

In this regard, the KICPA strongly demanded thorough compliance with the following when signing audit contracts for the next fiscal year in accordance with the 'External Audit Code of Conduct': ▲ accepting audits at an appropriate level considering the feasibility of complying with standard audit hours ▲ providing detailed explanations based on the application of standard audit hour regulations and detailed guidelines, including detailed calculation grounds and audit time input plans ▲ clear explanations of the basis for calculating audit fees reflecting audit scope, audit hours, and audit risks.

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