The Financial Supervisory Service (FSS) is holding an online briefing on the auditor designation system to guide listed companies with December fiscal year-ends on submitting designated basic data.
On August 28, the FSS announced that it will conduct the 'Online Briefing on the Auditor Designation System' from September 1 to 15, the designated period for data submission.
Starting today, the FSS, in collaboration with relevant organizations such as the Korea Listed Companies Association, the KOSDAQ Association, the KONEX Association, the Korea Federation of Small and Medium Enterprises, and the Korean Institute of Certified Public Accountants, will post videos and explanatory materials about the auditor designation system on YouTube and the respective organizations' websites.
The briefing will cover guidelines for preparing designated basic data and key aspects of the auditor designation system. It will address frequently asked questions from companies and auditors regarding periodic designation, reasons for ex officio designation, specific designation periods and methods, and important considerations for re-designation requests.
The FSS will also provide information on the periodic designation deferral system implemented since last year, reasons for ex officio designation that fall under the periodic designation period, and options for extending the designation period.
Under the External Audit Act, listed companies (excluding KONEX) and large unlisted companies with non-separation of ownership and management that are subject to periodic designation must submit designated basic data annually. Failure to comply may result in the designation of an auditor. Periodic designation is a system that designates auditors for the next three business years for companies that have freely appointed auditors for six consecutive business years.
This year, approximately 2,700 companies are required to submit designated basic data for December fiscal year-ends, including about 2,600 listed companies and around 100 large unlisted companies with non-separation of ownership and management. The submission period for designated basic data is from September 1 to 15.
Companies must submit their designated basic data through the FSS's External Audit Contract Reporting System, detailing the auditor appointment status for the past six years, whether ownership and management are separated, and the need for industry expertise of the designated auditor. Accounting firms must provide information on the number of certified public accountants, the number of quality control personnel, and their capacity for compensation.
The FSS will promptly respond to inquiries from company and accounting firm representatives regarding the preparation of designated basic data through its website and other channels to support the data submission process.
* This article has been translated by AI.
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