I want to know about the punishment level and response methods for violations of the External Audit Act.

浏览量4,181

While the police were trying to stop a disturbance on the scene and verify my identity, I was excited and they grabbed my arm. As I tried to shake free, I ended up pushing the officer. At the time, I was just startled and trying to pull away, but because I pushed the officer, I was told I could be investigated for obstruction of official duties. Can actual prison time be imposed in such cases? Is there a way to wrap it up with just a fine for obstruction of official duties?

external audit act

相关咨询的解答

作者: 김국일

When receiving criminal punishment for violation of the External Audit Act, both imprisonment and fines may apply depending on the degree of the act and the amount changed in the financial statements.

Generally, when a company subject to external audit prepares or discloses false financial statements in violation of accounting standards, under Article 39 of the Act on External Audit of Stock Companies, etc., imprisonment of up to 10 years and a fine of 2 to 5 times the profit gained or loss avoided through the violation may be imposed.

Particularly, when changes in profit/loss or equity in the financial statements exceed a certain proportion of total assets, the punishment level increases significantly.

If 5% or more but less than 10% of total assets, definite imprisonment of 3 years or more may be imposed, and if 10% or more of total assets, life imprisonment or imprisonment of 5 years or more may be sentenced.

However, such aggravated punishment is limited to cases where total assets are 50 billion won or more.

Therefore, when involved in a violation of the External Audit Act case, it is very important to establish an active response strategy through accurate organization of facts, financial statement review, and securing related evidence from the early stages of the case.

Analyzing case records, objectively proving the intent of violation and the scale of loss/profit, and preparing reasonable mitigation reasons when necessary are key response methods to minimize punishment levels.

For detailed matters related to violations of the External Audit Act, please check through consultation with an accounting specialist attorney.