The Securities and Futures Commission Imposes Fines and Audit Designation on Orient Bio for Accounting Standards Violations
The Securities and Futures Commission under the Financial Services Commission announced on the 4th that it has decided on measures including the designation of auditors for two companies, including Orient Bio, which prepared and disclosed financial statements in violation of accounting standards.
Orient Bio, a company listed on the KOSPI market, neglected to review revenue recognition standards, resulting in overstated and understated sales for 2018?2019 and understated allowance for doubtful accounts on accounts receivable.
The Securities and Futures Commission decided to impose a fine of 110.4 million KRW on Orient Bio, designate an auditor for three years, and recommend dismissal of the responsible executive. The auditor, Daeyoung Accounting Corporation, and the certified public accountants were also subject to fines and restrictions on audit duties.
Daehan Land Trust, an unlisted company, failed to disclose in the related party transaction notes that it had entered into a completion guarantee agreement with a financial institution for a project in which a related party participated as the developer.
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The Securities and Futures Commission decided to impose a fine and designate an auditor for two years for Daehan Land Trust.
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