The Securities and Futures Commission, under the Financial Commission, announced on September 16 that it has decided to designate an auditor and impose penalties on Haitai Confectionery for violating accounting standards in its financial statements.
According to Yonhap News, the investigation revealed that Haitai Confectionery inflated its sales and cost of goods sold by issuing false tax invoices and omitting accounting for sales discounts and promotional expenses.
It was also found that the company used financial statements prepared in violation of accounting standards in its securities registration statement. The investigation uncovered that Haitai obstructed external audits by presenting false transaction evidence and requiring clients to respond falsely to receivable inquiries.
As a result, the Commission decided to designate an auditor for Haitai Confectionery for three years and impose fines. The head of the finance department has been recommended for dismissal and suspended from duty for six months, while significant measures equivalent to dismissal have been decided for the former auditor.
The head of the finance department and the former auditor have been reported to the prosecution. The final amount of the fines will be determined by the Financial Commission in the future.
* This article has been translated by AI.
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