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KICPA members met Mr. Choi Jong-Ku, Chairman of FSC
As a part of the implementation of the external audit act reform of the Sep. 2017, Mr, Choi Jong-Ku, chairman of Financial Supervisory Commission visited KICPA and met its members on 18th May at KICPA building. Mr. Choi delivered a presentation and encouraged the engagement of the profession to re-establish the trust and transparency of accounting system in Korea.He said "As a part of the reform of the external audit act, innovative approach in accounting regulatory system will proceed in due course. The government and the accountancy profession should remind its objective to restore trust in capital market. Especially the profession need to take the innitiative with broad and deep insight"KICPA president Amb. Joong-kyung Choi, representing the members, expressed an appreciation to Mr. Choi and promised a strong support.
- The Mandatory Auditor Rotation Regime Temporarily Enforced in 2006 Was a Failed System? : Focusing on Prior Audit Quality ABSTRACTOn September 21, 2017, the Political Affairs Committee of the National Assembly agreed to revise the Act that a listed company, which has been audited by the same audit firm for six consecutive years,should change mandatorily the auditor. According to the Act, the new audit firms will be chosen by the Securities and Futures Commission rather than by the firms. However, as the mandatory auditor rotation was adopted in the past but it was abolished soon, there is no clear conclusion regarding the positive effects of the mandatory changes. Therefore the reintroduction of the mandatory auditor rotation regime can be a controversial issue. The study aims to review the appropriateness of reintroduction for the mandatory auditor rotation regime through analyzing the effects of that system, which was temporarily adopted in 2006. In particular, this study focuses on audit quality in the year preceding the mandatory changes, comparing to the prior research that focuses on audit quality after replacement. Under the mandatory auditor rotation regime enforced in 2006, companies could choose the new audit firms, so that they might tend to providelower audit quality thanks to adverse effects such as the low audit fee according to the excessive competition between auditors. On the other hand, the auditors who are supposed to be forced to replace should bear the consequences such as the enforcement action of the Financial Services Commission and defamation if the problems occur after their replacement. Thus we expect that the auditors will have the incentive to provide a higher level of audit service on the verge of the change. 2018.05.29
- KICPA Holds 2014 CSR Evaluation Conference The KICPA hold the 2014 Corporate Social Responsibility Evaluation Conference in collaboration with the Chosun Daily and Korea Institute for Firm Contribution. Attached, you can see more details. 2014.06.20
- Study on Accounting, Taxation & Auditing Published The KICPA publishes Study on Accounting & Auditing, an academic journal, twice a year, which attracts strong interests from the academia and practice. This year holds particular significance with the mandatory introduction of IFRSs to all listed companies and Clarified ISAs. The journal deals with some of the issues the new standards could bring about. 2013.12.02
- Improvements in External Audit and Disclosure of Nonprofit Organization The KICPA commissioned the Korean Accounting Association to conduct research on the internal control, external audit and disclosure of nonprofit organizations that hold significance in their role to serve the public interest. 2013.11.01