Financial Supervisory Service Launches TF to Support Digital Audit Technology Adoption... Composed of Accounting Firms, Hangonghoe, and Academia

Financial Supervisory Service, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

On the 15th, the Financial Supervisory Service (FSS) announced the launch of a Task Force (TF) to support the introduction of digital audit technologies.

With the rapid changes in corporate financial reporting and external audit environments due to advancements in artificial intelligence (AI) technology and the convergence of accounting and IT technologies, demand has increased among accounting firms to utilize digital technologies in external audits. However, the domestic level of utilization is still in its early stages, and there have been opinions raised that there is a lack of understanding of digital audit technologies and a need to prepare to prevent potential side effects from the use of digital technologies while supporting their positive functions.

This TF is composed mainly of experts including the head of the FSS auditor supervision office, digital audit managers from accounting firms, the Korean Institute of Certified Public Accountants, the Korea Listed Companies Association, and academia. The first meeting was held around 3 p.m. on the same day, where they plan to discuss step-by-step topics such as the current status and impact analysis of digital audit technologies, verification methods for digital audit technologies, data security, reducing gaps among accounting firms, and cost burdens.

Jang Seok-il, a senior advisory committee member of the FSS, emphasized, "The use of digital audit technologies in the external audit process is an unavoidable task, and if successfully utilized, it can contribute to improving audit quality. However, before full-scale utilization, it is necessary to identify potential risk factors, promote institutional improvements such as safety measures, and also pay attention to training experts and resolving disparities among accounting firms."

Experts stated, "The use of IT technology in the external audit process is becoming increasingly important in the audit work process of accounting firms," and added, "Since a place has been prepared to discuss various topics, we promise to actively express opinions so that it can lead to effective outcomes."

An FSS official said, "We plan to operate the TF effectively so that the digital audit technology, which is in its early stages, can be activated and contribute to improving audit quality," and added, "Based on the improvement tasks discussed in this TF, we plan to discuss institutional improvement measures with the Financial Services Commission."

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