The Financial Supervisory Service said on the 19th that it had sent advance notices to companies and accounting firms on the results of external auditor assignments for the 2027 fiscal year.
Under the auditor assignment system, the Securities and Futures Commission under the Financial Services Commission designates an auditor instead of allowing a company to choose one freely. The system is intended to secure auditor independence and improve audit quality.
A total of 1,193 companies were subject to this year's advance notice, down 37 from 1,230 a year earlier, according to the FSS. Of those, 404 fell under periodic assignment and 789 under mandatory designation. In the periodic assignment category, 88 listed companies and four large unlisted companies without separation of ownership and management were newly designated this year.
Periodic assignment applies to listed companies, excluding those on the Konex market, that have freely selected their own auditor for six consecutive fiscal years, as well as to large unlisted companies without separation of ownership and management. Their auditors are assigned for the following three fiscal years. Mandatory designation applies when grounds arise that call for an impartial audit to protect investors, such as sanctions following a review of financial statements or designation as an administrative issue stock.
The FSS will collect and review opinions from companies and auditors for two weeks after the advance notice, and plans to issue the final notice on Nov. 12. An FSS official said the agency plans to support the smooth conduct of assigned audits, including by flexibly extending deadlines to the extent that audit work is not disrupted.