The Audit Committee Imposes Audit Restrictions on Samdeok Accounting Firm and Others for 'Independence Violations'

[Asia Economy Reporter Lee Jung-yoon] The Securities and Futures Commission under the Financial Services Commission announced on the 29th that it has decided to impose audit restrictions and other measures on accounting firms and certified public accountants who violated regulations designed to maintain auditor independence, such as restrictions on auditor qualifications.

According to the Securities and Futures Commission, Samdeok Accounting Firm was found to have violated regulations prohibiting audit work for companies in which its partners or their spouses own shares, and the rule that the same director cannot be audited for six consecutive business years. The commission decided to impose a 20% additional contribution to the joint compensation fund for six companies and a two-year audit restriction on Samdeok Accounting Firm. Additionally, two affiliated certified public accountants were subjected to a one-year audit restriction on stock-listed companies and designated companies, excluding KOSDAQ and KONEX listed companies.

Certified public accountants at Hyundai Accounting Firm violated regulations prohibiting auditors from auditing companies with which their partners or their spouses have creditor or debtor relationships, and performed audit work. Accordingly, the Securities and Futures Commission decided on a two-year audit restriction for the relevant company, a one-year audit restriction for stock-listed companies and designated companies, and an 8-hour job training requirement.

Hanul Accounting Firm was also found to have conducted audit work despite its partners or their spouses owning shares in the audited company. Induk Accounting Firm failed to comply with the rule that when the audit assistant for a stock-listed company has been the same for three consecutive business years, at least two-thirds of the assistants must be replaced in the following year. These accounting firms were subjected to a 20% additional contribution to the joint compensation fund and a two-year audit restriction for the relevant companies.

This content was produced with the assistance of AI translation services.