FSS announces immediate inspections of accounting firms accepting unusually low fees
The Financial Supervisory Service said it would immediately begin inspections of accounting firms that set audit fees abnormally low or reduced audit hours.14Audit fees for listed companies rose after the introduction of the New External Audit Act, but have recently been trending downward.
The Financial Supervisory Service said it would immediately begin inspections of accounting firms that set audit fees abnormally low.14From an investor perspective, this issue is directly linked to confidence in listed companies’ financial statements.
The FSS plans to conduct inspections and reviews of accounting firms that set audit fees excessively low or unreasonably reduce audit hours.
The FSS 10held a meeting chaired by Expert Deliberation Committee Member Yoon Jeong-suk with representatives of the audit divisions of 12accounting firms.
The meeting was organized in response to concerns about excessive competition for engagements in the accounting industry and the resulting deterioration in working conditions. The FSS shared its future direction for accounting supervision and urged the industry to pursue self-reform.
According to data released by the FSS, the average audit fee for listed companies rose after the introduction of the New External Audit Act but has declined in recent years. The annual data showed that, for each 2023 year, the average audit fee was 2 hundred million 6500ten thousand won.
The FSS said it would conduct inspections and reviews of accounting firms where abnormal conduct is identified and consider follow-up measures, including sanctions if necessary.
The FSS added that it would continue to urge the industry to pursue self-reform.
Sources: 파이낸셜뉴스 증권
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