Financial Supervisory Service Publishes Revised Edition of New External Audit Act Guidebook

[Asia Economy Reporter Lee Jung-yoon] The Financial Supervisory Service announced on the 25th that it has published a revised edition of the guidebook, which organizes the External Audit Act in an easy-to-understand manner focusing on issues that arose during the implementation of the system and reflects institutional changes after the enforcement of the new External Audit Act.

The revised edition is composed of a total of 10 chapters arranged in chronological order of the application of the External Audit Act, considering the convenience of companies. In addition, the main contents and application timings are organized in an easy-to-understand manner.

Chapters 2 and 3 cover the scope of companies subject to external audits and the auditor appointment procedures, including the auditor appointment committee. Chapters 4 and 5 provide guidance on periodic designation requirements and the changed reasons for auditor designation ex officio, divided into 19 reasons, explaining the timing of designation, the period subject to designation, and the designation procedures. Chapter 9 guides the auditor registration requirements and registration procedures, the effects of auditor registration, and restrictions on audits by unregistered auditors. Chapter 10 explains the audit inspection procedures focusing on reasons for initiating inspections, measures following inspection results, and the appeal procedures against them.

Furthermore, since the new External Audit Act was fully revised and enforced from November 1, 2018, the guidebook for the new External Audit Act was published in December 2019. The revised edition reflects subsequent changes in the law to enhance user convenience.

A Financial Supervisory Service official explained, "The easy-to-understand guidebook for the new External Audit Act aims to help companies and auditors systematically understand the key contents and practical procedures, which have been frequently inquired about, and to contribute to preventing violations of regulations due to lack of familiarity with the rules."

The Financial Supervisory Service plans to distribute the revised edition to companies and accounting firms and also post it on its website.

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