Region

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Regulator

2017-05-19

Added 2026-06-25 · Updated 2026-08-16

Amendments Proposed to Regulations on External Audit and Accounting

The proposed amendments to the Regulations on External Audit and Accounting exclude accounting firms criminally charged with audit misconduct from auditor designation, even during ongoing audit inspections. The severity of supervisory sanctions imposed prior to the completion of an audit inspection may be adjusted based on the inspection findings. These changes are subject to public comment until June 30, 2017.

South Korea

Financial Supervisory Service Korea

Laws and Regulations Announcement Amendments Proposed to Regulations on External Audit and Accounting Agency: Financial Services Commission Regulation to be amended: Regulations on External Audit and Accounting FSC Notice number: 2017-140 Announcement date: May 19, 2017 Summary: The Financial Services Commission announced on May 19, 2017, amendments to the Regulations on External Audit and Accounting. The proposed amendments are intended to improve the public’s confidence in the external audit system by excluding unqualified accounting firms from auditor designation. Key provisions:  Accounting firms criminally charged with audit misconduct will be excluded from auditor designation even when they are undergoing an audit inspection.  The severity of supervisory sanctions taken before the audit inspection is completed may be adjusted upon the audit inspection findings. Public comment for the proposed amendments: The public comment period for the proposed rule changes ends on June 30, 2017.