What is the procedure for the Financial Supervisory Service's accounting audit?

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I was caught for drunk driving before, so my license is currently suspended and I'm unlicensed. Recently, my father was sick and I urgently called a taxi, but it was late at night and none came, so I had to drive to the ER. On the way back, anxious and disturbed, I caused an unlicensed traffic accident. The accident damage wasn't large, but I'm told I could be detained for violating the Act on Special Cases Concerning Traffic Accidents. How should I respond? Please reply regarding unlicensed driving traffic accidents.

accounting audit

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作者: 김국일

The Financial Supervisory Service's accounting audit is generally divided into a review stage and an audit stage.

First, in the review stage, the company's financial statements and disclosure materials are examined to determine whether there has been a violation of accounting standards. The subjects of review are selected through random sampling or based on tips and media reports.

The Financial Supervisory Service notifies the company of the commencement of the review, and if any unusual matters are found in accounting treatment, requests the submission of relevant materials and reviews the company's explanation.

As a result, if there is no violation of accounting standards, the case is closed without any finding of wrongdoing. Even if there is a violation, if it constitutes mere negligence and the company has complied with the correction recommendation, it is concluded with light measures.

However, if the violation of accounting standards during the review process is determined to be intentional or grossly negligent, or if repeated violations are confirmed in a state where there is a previous sanction history, or if the company does not comply with the correction recommendations of the Financial Supervisory Service, the case is converted to the audit stage.

In the audit stage, extensive material submission is required, including the company's accounting books, related contracts, and audit working papers, and depending on the necessity, financial transaction inquiries, statements from related parties, and on-site inspections may also be conducted.

If the audit confirms a violation of accounting standards or auditing standards, comprehensive consideration is given to the motive of the violation and its impact on the financial statements, and various sanctions may be imposed, such as fines, designation of an auditor, sanctions on executives, and notification to the prosecutor.

Since the results of an accounting audit can vary greatly depending on the initial response, it is important to respond systematically with the advice of an expert experienced in accounting audit response from the review stage.