I am curious about the meaning and definition of accounting audit review.

Accounting audit review is a system that examines whether an accounting firm has appropriately conducted a company's financial audit.

At the time of settlement, a company has its financial statements, prepared in accordance with corporate accounting standards, audited by an accounting firm, and reviewing the appropriateness of such an audit is accounting audit review.

Through this, the reliability of a company's financial information can be secured and the quality of an accounting firm's work can be managed.

The Securities and Futures Commission (under the Financial Services Commission) has overall authority and conducts external audit review of listed companies and quasi-listed companies, while the Korean Institute of Certified Public Accountants performs a first-level review for quality management purposes for non-listed companies.

A company subject to review is not selected on the basis of a single specific financial ratio; rather, it is determined by comprehensively considering various indicators such as the debt ratio, the inventory asset ratio, and the ratio of cash flow to sales, together with past audit records and an overall risk assessment.

A company does not automatically become subject to review simply because a financial ratio is high or low.

If a deficient accounting audit is identified as a result of the review, sanctions are imposed in stages according to the degree of the violation, its intentionality, and whether it was repeated.

A minor violation may be subject to corrective measures or a warning, a serious violation to suspension of business or revocation of registration, and an intentional or grave violation to measures such as a criminal complaint.

In this way, accounting audit review is an important supervisory system for verifying the appropriateness of an accounting firm's audit and securing the reliability of a company's accounting information, and specific matters can be confirmed by consulting an accountant or an attorney specializing in accounting.