South Korea's Financial Supervisory Service will hold an online briefing on the auditor designation system, timed to the period when listed companies and large unlisted firms must submit basic data for auditor designation.
The FSS said on the 28th that it will post an instructional video and explanatory materials on the auditor designation system on YouTube and on the websites of partner organizations, including the Korea Listed Companies Association, the KOSDAQ Association, the KONEX Association, the Korea Federation of SMEs and the Korean Institute of Certified Public Accountants.
Listed companies with a December fiscal year-end, excluding those on the KONEX market, and large unlisted companies whose ownership and management are not separated must submit the basic data from the 1st to the 15th of next month. Companies must report their auditor appointment records over the past six years, whether ownership and management are separated in the case of large unlisted firms, and whether a designated auditor needs industry-specific expertise. Accounting firms must report the number of certified public accountants they employ, the number of staff handling quality control work and their capacity to pay damages. Companies that fail to comply may have an auditor designated for them.
Through the briefing, the FSS plans to explain how to prepare the basic data and outline the main features of the designation system. The materials will cover in detail the grounds for periodic and discretionary designation, the specific designation periods and methods, and frequently asked topics such as points to note when requesting a redesignation.
"If staff at companies and accounting firms submit questions through the Financial Supervisory Service website or other channels, we will respond quickly to support them in preparing the basic data," an FSS official said.
