Financial Authorities Point Out an Average of 5.5 Quality Control Issues in Big 4 Accounting Firms

Average of 9.1 Quality Control Issues Identified Across Accounting Firms

Financial authorities conducted quality control inspections on 14 accounting firms, including Samil, and found an average of more than 9 issues. Quality control inspections are procedures to verify whether auditors have properly designed and operated quality control policies and procedures to maintain and improve the quality of audit work.

The Securities and Futures Commission under the Financial Services Commission disclosed on the 25th that the Financial Supervisory Service found an average of 9.1 issues during quality control inspections of 14 accounting firms.

The so-called 'Big 4' accounting firms had an average of 5.5 issues. This year's quality control inspection targets included 2 of the 'Big 4' (Samil and Han Young) and 12 other registered firms. By component, the number of issues was highest in the order of engagement performance (2.4 issues), human resources (1.8 issues), and leadership responsibility (1.8 issues).

The results of this quality control inspection will be posted on the Financial Supervisory Service website for three years from the date of the improvement recommendation.

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