The Financial Services Commission asked the Korea Listed Companies Association and the KOSDAQ Listed Companies Association to try to minimize accounting reform-related confusions with concerns rising over an expected increase in adverse opinions. At present, clashes of opinions between accounting firms and auditees are coming to the surface with audit report submission having to be completed within about 50 days.
Earlier, the commission asked third parties such as the Korea Institute of Certified Public Accountants to take part to address such conflicting opinions.
The commission’s requests are to forestall confusions in the form of a rapid increase in the number of adverse opinions. A lot of companies are currently expressing concerns over the possibility that accounting firms will apply more conservative opinions to their audit reports for last fiscal year.
Last month alone, more than 200 inquiries were made at the Korea Accounting Institute, which provides accounting standard guidelines. The commission explained that the institute and itself are sending quick replies to minimize confusions.
In the meantime, some South Korean companies are asking the commission to improve systems related to audit fee disclosure, internal accounting control, standard audit hours, etc. As for internal accounting supervision, which is scheduled to turn into inspection from review this year, they said that the supervision should follow a grace period for guidance.