CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to completing the internal control system of central administrative agencies, local governments and public institutions and to securing appropriateness and fairness in the operation thereof and accountability to the people by prescribing fundamental matters concerning the composition, operation, etc. of self-audit organizations of central administrative agencies, local governments and public institutions and matters necessary for establishing efficient audit systems.
The definitions of terms used in this Act shall be as follows:
| 1. | The term "self-audit" means where the head of an audit organization of a central administrative agency, local government or public institution inspects, examines, checks, analyzes and verifies all the duties, activities, etc. of an institution with which he/she is affiliated (including the institution he/she is affiliated with and subordinate organizations thereof) and persons belonging to such institution, and deals with the results thereof; |
| 2. | The term "central administrative agency" means a Ministry, Service, Administration, Board of Audit and Inspection, National Human Rights Commission, Anti-Corruption and Civil Rights Commission, Fair Trade Commission, Financial Services Commission, Korea Communications Commission pursuant to Article 2 of the Government Organization Act and other institutions prescribed by Presidential Decree; |
| 3. | The term "local government" means Seoul Special Metropolitan City, Metropolitan Cities, Dos (excluding Jeju Special Self-Governing Province; the same shall apply hereinafter), Sis, Guns, autonomous Gus and Office of Education of Seoul Special Metropolitan City, Metropolitan Cities and Dos; |
| 5. | The term "self-audit organization" means institutions or departments established at central administrative agencies, local governments and public institutions which conduct self-audits; |
| 6. | The term "head of audit organization" means a person responsible for the overall duties of self-audit organizations, directs and supervises auditors, and a collegial audit organization under Article 6 (1); |
| 7. | The term "auditor" means persons who are affiliated with self-audit organizations and conduct audit activities. |
| Article 3 (Extent of Application) |
| (1) | This Act shall apply to central administrative agencies, local governments and public institutions (referred to as "central administrative agencies, etc." hereinafter) concerning self-audit activities and the audit activity systems, etc. related thereto: Provided, That Article 5 (2) shall not apply to central administrative agencies, etc. for which special provisions of other Acts concerning the establishment of self-audit organizations exist. |
| Article 4 (Relationship with Other Statutes) |
Where any of the provisions in this Act conflicts with another statute concerning the operation of self-audit organizations, audit activity systems, etc., of central administrative agencies, etc., this Act shall apply.
CHAPTER II OPERATION OF SELF-AUDIT
SECTION 1 Self-Audit Organizations
| Article 5 (Establishment of Self-Audit Organizations) |
| (1) | Central administrative agencies, etc. may establish a self-audit organization: Provided, That in cases prescribed by relevant statutes in consideration of the size of central administrative agencies, etc., duties in charge or number, etc. of institutions subject to self-audit, they shall establish such self-audit organization assume full responsibility of conducting self-audit duties. |
| (2) | Central administrative agencies, etc. may adopt a collegial audit system for their self-audit organization as prescribed by relevant statutes, municipal ordinances, or articles of association. |
| (3) | Central administrative agencies, etc. may have an audit advisory committee as prescribed by Presidential Decree to have it provide advice and suggestions to the heads of central administrative agencies, etc. or the head of audit organizations with regard to self-audit, as prescribed by Presidential Decree. |
| Article 6 (Operation of Collegial Audit Organizations) |
| (1) | Collegial audit organizations under Article 5 (2) shall be comprised of any number of members from three to seven inclusive, including one chairperson. |
| (2) | The provisions of Articles 8 through 15, 20, 28 (2), 29, 38 (3) and 39 (5) concerning the heads of audit organizations shall apply mutatis mutandis to matters concerning the appointment, term of office, qualification, class, grounds for disqualification, duties, etc. of members of collegial audit organizations: Provided, That the provisions of Articles 8 through 11 and 13 through 15 shall not apply mutatis mutandis to members of collegial audit organizations of public institutions. |
| (3) | Matters necessary for the composition, operation, etc. of collegial audit organizations in addition to matters prescribed in paragraphs (1) and (2), shall be prescribed by Presidential Decree. |
| Article 7 (Guarantee of Independence of Heads of Audit Organizations) |
| (1) | The head of an audit organization for central administrative agencies, etc. shall be guaranteed independence in self-audit activities to the maximum. |
| (2) | The head of an audit organization for central administrative agencies or local governments shall be in the appropriate place within institutions as prescribed by relevant statutes so that independence in audit activities may be guaranteed. |
SECTION 2 Heads of Audit Organizations
| Article 8 (Appointment of Heads of Audit Organizations) |
| (2) | When the heads of central administrative agencies and local governments appoint or recommend to appoint the head of an audit organization as prescribed in paragraph (1), they shall establish and operate a collegial organization to examine qualification impartially as prescribed by relevant statutes, and have such collegial organization examine it. |
| Article 9 (Term of Office of Heads of Audit Organizations) |
| (1) | The term of office of the head of an audit organization for central administrative agencies or local governments appointed according to the open position system as prescribed in Article 8 (1) shall be determined by persons having authority to appoint, within the extent of two to five years. |
| (2) | Where the service of the head of an audit organization appointed according to the open position system needs to be continued in consideration of examination results under Article 39 (1) and performance results, persons having authority to appoint the head of an audit organization for central administrative agencies or local governments may extend the period of appointment under paragraph (1) within the extent that the total period of appointment does not exceed five years. In such cases, the procedures for appointment under the latter part of Article 8 (1) and under paragraph (2) of the same Article need not be executed. |
| Article 10 (Guarantee of Status of Heads of Audit Organizations) |
Unless the head of an audit organization falls under any of the following subparagraphs, persons having authority to appoint the head of an audit organization for central administrative agencies or local governments shall not revoke an employment contract during the term of office (referring to two years, where the head of an audit organization is not in a position according to the open position system) contrary to his/her will or appoint them to other positions:
| 1. | Where he/she has become unable to perform duties due to a mental or physical disorder; |
| 2. | Where he/she is promoted to a higher grade position; |
| 3. | Where he/she takes a temporary leave of absence from work; |
| 4. | Where he/she falls under the grounds for disqualification prescribed in Article 15; |
| 5. | Where he/she has become the subject of recommendation for replacement as prescribed in Article 39 (5); |
| 6. | Where he/she has been issued the disposition of any disciplinary action or disposition of removal from position. |
| Article 11 (Qualifications for Heads of Audit Organizations) |
| (1) | The head of an audit organization for central administrative agencies or local governments that has established a self-audit organization assuming full responsibility for self audit as prescribed in Article 5 (1) shall be appointed from among persons in the following subparagraphs: |
| 1. | A person who has been in charge of audit, criminal investigation, judicial affairs, budget, accounting, examination, planning, evaluation, etc. (referred to as "audit-related duties" in this Article hereafter) for not less than three years and has career experience of service as a public official of Grade 5 or higher, or a position equivalent thereto; |
| 2. | A person who has career experience of service as a judge, prosecutor, attorney or certified public accountant for not less than three years; |
| 3. | A person who has career experience of service as an associate professor or higher for not less than three years in the field directly relating to audit-related duties at a university or college under subparagraphs 1 through 5 of Article 2 of the Higher Education Act; |
| 5. | A person who has been in charge of audit-related duties at a public or private research institution for not less than three years, and has career experience of service as a person in charge of a department corresponding to the position subject to appointment or higher; |
| 6. | A person who has expertise in the areas of technology, health, tax affairs, environment, etc. according to the duties administered by the relevant institutions, and has qualifications prescribed by Presidential Decree. |
| (2) | Qualifications for the head of an audit organization of central administrative agencies or local governments that do not establish a self-audit organization assuming full responsibility of self audit as prescribed in Article 5 (1) shall be prescribed by Presidential Decree in consideration of the size of institutions, duties of which they are in charge, duties that such self-audit organization conducts together with self-audit duties, etc. |
| Article 12 (Duties, etc. of Heads of Audit Organizations) |
| (1) | The head of an audit organization shall observe the audit standards and audit regulations under Article 37, and independently inspect the accounts and duties of institutions subject to self audit and the duties of affiliated public officials or employees. |
| (2) | The head of an audit organization shall endeavor to prevent unjust and unreasonable conduct of public officials or employees affiliated with institutions subject to self-audit. |
| Article 13 (Prohibition of Holding Additional Office, etc.) |
| (1) | The head of an audit organization for central administrative agencies or local governments shall not concurrently hold the post of public official, executive or employee of the institution subject to self-audit, engage in duties for the purposes of financial gain other than public duties, nor concurrently hold other duties without permission from the heads of affiliated institutions. |
| Article 14 (Class of Position of Heads of Audit Organizations) |
An appropriate rank for the head of an audit organization for central administrative agencies or local governments shall be secured according to the relevant statutes or municipal ordinances in consideration of the number of institutions subject to self audit, number of affiliated public officials, size of budget, volume of duties, etc., so that the independent duties are guaranteed in accordance with the size of the relevant self-audit organizations.
| Article 15 (Grounds for Disqualification) |
| (1) | No person in the following subparagraphs shall be the head of any audit organization of a central administrative agency or local government: |
| 1. | A person for whom two years have not passed since he/she retired from office after having served as an executive or employee of a juristic person or organization closely relating to the principal duties of the central administrative agency or local government that intends to appoint a head of audit organization; |
| 2. | A person for whom three years (five years where he/she resigned due to dismissal or reprimand) have not passed since he/she was subjected a disciplinary action of suspension from office or heavier or reprimand (excluding any disciplinary action or reprimand under subparagraph 4); |
| 3. | A person for whom two years have not passed since he/she was subjected to a disciplinary action lighter than suspension from office or reprimand (excluding any disciplinary action or reprimand under subparagraph 4); |
| (2) | Where the head of an audit organization for central administrative agencies or local governments falls under the subparagraphs of paragraph (1), or the fact that he/she has fallen thereunder at the time of his/her appointment is discovered, he/she shall step down from that post. |
| (3) | Matters concerning the extent of close relationship with principal duties under paragraph (1) 1 shall be prescribed by Presidential Decree. |
| Article 16 (Appointment of Auditor) |
| (1) | The heads of central administrative agencies or local governments shall appoint persons having expertise in audit duties or having special talents or aptitudes necessary in the performance of the auditor''s duties. In such cases, minimum qualifications for auditor shall be prescribed by Presidential Decree. |
| (2) | When the heads of central administrative agencies or local governments appoint auditors, they shall hear the opinions of the heads of relevant audit organizations or collegial audit organizations under Article 5 (2), and prepare plans for long service of auditors. |
| Article 17 (Grounds for Disqualification) |
No person in the following subparagraphs shall be an auditor of central administrative agency or local government:
| 2. | A person for whom three years (five years where he/she resigned due to dismissal or reprimand) have not passed from the day he/she was subjected to a disciplinary action of suspension from office or heavier or reprimand (excluding any disciplinary action or reprimand under subparagraph 4); |
| 3. | A person for whom two years have not passed since he/she was subjected to a disciplinary action lighter than suspension from office or reprimand (excluding any disciplinary action or reprimand under subparagraph 4); |
| Article 18 (Preferential Treatment to Auditors) |
The heads of central administrative agencies, etc. may give preferential treatment to auditors in the performance ratings, appointment, etc., as prescribed by relevant statutes, laws and regulations of local governments, articles of association, etc.
CHAPTER III SELF-AUDIT ACTIVITIES
| Article 19 (Formulation and Implementation of Self-Audit Plan) |
| (1) | The heads of self-audit organizations shall formulate an audit plan for organizations subject to self audit and conduct self audit. |
| (2) | Necessary matters concerning the kinds of self audit conducted as prescribed in paragraph (1), formulation of audit plans, notification of audit plans to institutions subject to self audit, etc. shall be prescribed by Presidential Decree. |
| Article 20 (Request for Submission of Data) |
| (1) | The head of an audit organization may take measures in the following subparagraphs over institutions subject to self audit, or affiliated public officials or employees when necessary for self audit: |
| 1. | Requests for attendance and answer (including requests made via information and communications networks under the Act on the Promotion of Information and Communications Network Utilization and Information Protection, etc.); |
| 2. | Requests for submission of related documents, books, goods, etc.; |
| 3. | Investigation into data input into the electronic information systems; |
| 4. | Requests for sealing safes, warehouses, books, goods, etc. |
| (2) | Measures under the subparagraphs of paragraph (1) shall be limited to the minimum necessary for an audit. |
| (3) | Institutions subject to self audit, affiliated public officials or employees, upon receipt of requests to take measures prescribed in the subparagraphs of paragraph (1), shall comply with such request unless any justifiable ground exists to the contrary. |
| (4) | Where audit cannot be conducted without using data or information held by central administrative agencies, etc., other than the institutions subject to self audit, the heads of central administrative agencies, etc. may request the heads of relevant central administrative agencies, etc. to submit necessary data or information. |
| (5) | The head of an audit organization and auditors shall not use information or data that has been submitted for audit for any purpose other than audit. |
| Article 21 (On-Site Audit) |
The head of an audit organization may dispatch auditors to institutions subject to self audit to conduct an on-site audit.
| Article 22 (Ordinary Audit) |
| (1) | The head of an audit organization shall have self-audit organizations conduct an ordinary audit by which the legality, validity, etc. of duties are checked and examined before institutions with which such organizations are affiliated conduct principal duties. |
| (2) | The head of an audit organization shall be exempted from conducting a self-audit of matters that have been confirmed according to an ordinary audit under paragraph (1). |
| (3) | Matters necessary for the subject of the ordinary audit under paragraph (1), and standards, procedures, etc. therefor shall be prescribed by Presidential Decree. |
| Article 23 (Notification of Audit Results and Handling thereof) |
| (1) | The heads of central administrative agencies, etc. (referring to the head of an audit organization in cases of public institutions in which the head of an audit organization has been appointed independently from the executive organizations of the relevant institutions) shall notify the heads of institutions subject to a self audit and the Board of Audit and Inspection of audit results within 60 days from the date on which a self audit is completed unless there is a compelling reason not to do so. In such case, notification to the Board of Audit and Inspection shall be made firstly to the Minister of the Interior and Safety in cases of Seoul Special Metropolitan City, Metropolitan Cities, Dos; to Seoul Special Metropolitan City, Metropolitan Cities, Dos, and the Minister of the Interior and Safety in cases of Sis, Guns, and autonomous Gus; to the Minister of Education in cases of the Offices of Education of Seoul Special Metropolitan City, Metropolitan Cities, and Dos, and to the heads of competent administrative agencies in charge of the duties of relevant public institutions (referred to as "competent agencies" hereinafter) in cases of public institutions. <Amended by Act. No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017> |
| (2) | Audit results under paragraph (1) shall include requests for disposition, such as compensation order, disciplinary action, reprimand, correction, attention, improvement, recommendation, accusation, etc. under Article 6 of the Act on Liability of Accounting Personnel, etc. or measures to be taken. |
| (3) | Heads of institutions subject to self audits who have been notified of audit results as prescribed in paragraph (1) shall implement measures to be taken unless there is good cause, and notify the heads of the central administrative agencies, etc. that have conducted self-audits of implementation results; and the heads of the central administrative agencies, etc. who have been notified of such implementation results shall examine the details thereof and notify the Board of Audit and Inspection of the implementation results without delay, along with the examination details. In such case, the provisions of the latter part of paragraph (1) shall apply mutatis mutandis to the notification to the Board of Audit and Inspection. |
| (4) | Where the heads of the central administrative agencies, etc. have uncovered any fact deemed illegal or improper as a result of an audit, which falls within the purview of the head of an institution not subject to a self audit, they shall notify the relevant institution and the Board of Audit and Inspection of such fact without delay after a relevant audit is completed. |
| Article 23-2 (Exemption from Proactive Public Administrative Responsibility) |
| (1) | With regard to results of the work produced by a person subject to self audit who has proactively performed his/her duties, such as improvement of unrational regulations, for the public interests, the person shall not be held accountable through request for disciplinary action or reprimand made pursuant to this Act unless there was any intentional act or gross negligence on the part of the person. |
| (2) | Detailed criteria for the exemption from responsibility provided under paragraph (1), procedures for the operation thereof, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13205, Feb. 3, 2015]
| Article 24 (Suspension of Prescription of Disciplinary Action or Reprimand) |
| (1) | When the heads of central administrative agencies, etc. have begun or completed investigation into a specific case, they shall notify the heads of institutions subject to self audit of such fact within ten days. |
| (2) | The heads of institutions and organizations who have been notified of the commencement of investigation as prescribed in paragraph (1) shall be prevented from proceeding the procedures of disciplinary action or reprimand over a specific case, an audit of which is under way from the day they were notified of the beginning of investigation prescribed in paragraph (1). |
| (3) | At the expiration of the period of prescription of grounds for disciplinary action or reprimand prescribed by statutes or by relevant institutions or organizations, or the remaining prescription period is not more than one month because the procedures of disciplinary action or reprimand have failed to be undertaken as prescribed in paragraph (2), such prescription period shall be deemed to expire on the day one month pass from the day notification of completion of investigation prescribed in paragraph (1) was received or from the day (referring to the day notification of result was received when reexamination was requested as prescribed in Article 25 (1)) notification of requests for disposition or measures to be taken prescribed in Article 23 (2) was received. |
| Article 25 (Application for Reexamination, etc.) |
| (1) | When the heads of institutions subject to self audit who have been notified of audit results from the heads of central administrative agencies, etc. who conducted a self audit acknowledge that such audit results are unlawful or unjust, they may file an application for reexamination to the heads of central administrative agencies, etc. who have provided notice of such audit results within one month from the day they received such notification: Provided, That the provisions of Article 6 (3) through (5) of the Act on Liability of Accounting Personnel, etc. shall apply to an objection against compensation order. |
| (2) | Where an application for reexamination under paragraph (1) is filed, grounds for application and details thereof shall be clearly stated, and evidential data, if any, shall be appended thereto. |
| (3) | The heads of central administrative agencies, etc. upon receipt of an application for reexamination as prescribed in paragraph (1) shall have a self-audit organization examine such application for reexamination without delay. In such cases, when such application for reexamination fails to fulfill necessary conditions, it shall be dismissed. |
| (4) | When the heads of central administrative agencies, etc. acknowledge that an application for reexamination under paragraph (1) leaks ground, they shall reject it; when they acknowledge a reason therefor exists, they shall revoke or modify such audit results. |
| (5) | The heads of central administrative agencies, etc. upon receipt of an application for reexamination under paragraph (1) shall process it within two months from the day of accepting such application for reexamination. |
| (6) | Other matters necessary for the trial, handling, etc. of reexamination case shall be prescribed by Presidential Decree. |
| Article 26 (Disclosure of Audit Results) |
| Article 27 (Participation by Outside Specialists, etc.) |
| (1) | Where the head of an audit organization conducts an audit of the field requesting specialized knowledge, experience, etc., such as accounting, health, environment, construction, etc., they may have outside specialized institutions or outside specialists participate in the audit. |
| (2) | Allowances, travel expenses, and other necessary expenses may be subsidized to the outside specialized institutions or outside specialists participating in the audit as prescribed in paragraph (1) within budgetary limits. |
| (3) | Outside specialists participating in the audit as prescribed in paragraph (1) shall be deemed an auditor when the provisions of Articles 20 through 22 and 29 are applied. |
| Article 28 (Compilation of Budget Necessary for Audit Activities) |
| (1) | When the heads of central administrative agencies, etc. compile a budget necessary for audit activities of self-audit organizations, they shall respect the independence of self-audit organization to the maximum. |
| (2) | Allowances and other expenses necessary for self-audit may be disbursed within budgetary limits to the heads of audit organizations and auditors, as prescribed by Presidential Decree. |
| Article 29 (Duty of Confidentiality) |
No head of any audit organization nor auditor shall divulge confidential information that they have learned in the course of performing his/her duties.
| Article 30 (Cooperation among Self-Audit Organizations) |
| (1) | The head of an audit organization and auditors may request the head of audit organization of another central administrative agency, etc. to provide cooperation where necessary for audit activities. |
| (2) | The head of an audit organization upon receipt of a request under paragraph (1) shall endeavor to comply with such request. |
CHAPTER IV IMPROVEMENT OF AUDIT SYSTEMS
| Article 31 (Establishment of Audit Activity Coordination Council) |
| (1) | An audit activity coordination council (hereinafter referred to as "Council") shall be established within the Board of Audit and Inspection in order to consult on and coordinate matters concerning the improvement and development of the audit system operated by the Board of Audit and Inspection (referring to audits conducted by the Board of Audit and Inspection as prescribed by the Board of Audit and Inspection Act; the same shall apply hereinafter), self audits, and audits conducted by central administrative agencies, etc. in accordance with the relevant statutes other than the Board of Audit and Inspection Act (hereinafter referred to as "audit by the Board of Audit and Inspection, etc."). |
| (2) | The Council shall consult on and coordinate any of the following matters: |
| 1. | Cooperation among self-audit organizations under Article 30; |
| 2. | Comprehensive plans for the improvement of audit activities under Article 32; |
| 3. | Prohibition of overlapping audits under Article 33 and consultation on audit plans under Article 34; |
| 4. | Matters concerning audit standards, etc. under Article 37; |
| 5. | Other matters the chairperson deems necessary for the operation of self-audit organizations and the promotion of efficient self-audit activities. |
| (3) | The Council shall be comprised of not more than 20 members, including one chairperson. |
| (4) | The secretariat general of the Board of Audit and Inspection shall be the chairperson of the Council, and persons referred to in any of the following subparagraphs shall be the members of the Council: <Amended by Act. No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017> |
| 1. | Two persons recommended by the Minister of the Interior and Safety and one person recommended by the Minister of Personnel Management from among the heads of auditing organizations for central administrative agencies; |
| 3. | Three persons who are the heads of auditing organizations for public institutions recommended by the Minister of Strategy and Finance; |
| 4. | One person each recommended by the Minister of Strategy and Finance and the Minister of Personnel Management, respectively, from among private specialists who have abundant expertise knowledge and experience in the field of auditing; |
| 5. | Three public officials of the Senior Civil Service, who are designated by the chairman of the Board of Audit and Inspection; |
| 6. | Persons who are commissioned by the chairperson of the Board of Audit and Inspection from among persons who have abundant expertise knowledge and experience related to in the field of auditing. |
| (5) | Matters necessary for the composition, operation, etc. of the Council in addition to matters prescribed in paragraphs (1) through (4) shall be prescribed by Rules of the Board of Audit and Inspection. |
| Article 32 (Comprehensive Plans, etc. for Improvement of Audit Activities) |
| (1) | The heads of central administrative agencies, etc. shall formulate and implement improvement plans for self audit in order to operate a self-audit system efficiently and to raise the outcome of self-audit. |
| (2) | The Board of Audit and Inspection shall integrate improvement plans for self audit under paragraph (1), undergo the consultation and coordination of the Council, and formulate and implement comprehensive plans for the improvement of audit activities. |
| (3) | When the heads of central administrative agencies, etc. operate self-audit organizations and promote self-audit activities, they shall endeavor to observe comprehensive plans for the improvement of audit activities under paragraph (2). |
| Article 33 (Prohibition of Overlapping Audits) |
Except in cases prescribed by Presidential Decree, such as where new facts have been found, important matters have been omitted, etc. concerning matters over which audit by the Board of Audit and Inspection, etc. has been already implemented, the head of an audit organization shall exclude such matters from the subject of self audit to be conducted by self-audit organizations, and utilize the results of previous audit.
| Article 34 (Consultation on Audit Plans) |
| (1) | The Board of Audit and Inspection and the heads of central administrative agencies, etc. shall, if necessary, consult on audit plans, etc. to prevent overlapping audits and to heighten the efficiency of audit. |
| (2) | Necessary matters concerning the procedures for consultation on audit plans, etc. under paragraph (1) and methods, etc. thereof shall be prescribed by Presidential Decree. |
| Article 35 (Vicarious Performance of Audits of Board of Audit and Inspection) |
| (1) | In order to heighten the efficiency of audits, etc. of the Board of Audit and Inspection and to prevent overlapping audits, the Board of Audit and Inspection may have self-audit organizations conduct part of the audit duties (limited to duties, such as the investigation, confirmation, analysis, etc. of facts which are not directly connected with the rights and obligations of the people) of the Board of Audit and Inspection by proxy and submit the results. |
| (2) | The Board of Audit and Inspection may be exempted from conducting all or some of an audit over the institution that has undergone an audit as prescribed in paragraph (1). |
| (3) | The Board of Audit and Inspection shall formulate and implement plans for the invigoration of vicarious audits under paragraph (1). |
| (4) | Matters necessary for the vicarious performance of audits, omission of audits by the Board of Audit and Inspection, formulation of plans for the invigoration of vicarious audits, etc. prescribed in paragraphs (1) through (3) shall be prescribed by Rules of the Board of Audit and Inspection. |
| Article 36 (Audit Information System) |
| (1) | The Board of Audit and Inspection may construct and operate an audit information system to share audit-related knowledge and experience and to increase the efficiency of self-audit systems of central administrative agencies, etc., such as the prevention of overlapping audits, etc. |
| (2) | The head of an audit organization shall manage information on audit activities prescribed by Presidential Decree, such as audit plans, audit results, implementation results, etc. by inputting such information into the audit information system, and the Board of Audit and Inspection shall prepare plans to facilitate shared use for such information. |
| (3) | Matters necessary for the construction, operation, etc. of audit information system under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 37 (Auditing Standards, etc.) |
Except as prescribed by this Act, the Board of Audit and Inspection may determine auditing standards and codes of audit practice that the head of an audit organization for central administrative agencies or local governments, and auditors shall generally observe while conducting self-audit activities as prescribed by Rules of the Board of Audit and Inspection after consultation with and coordination of the Council.
CHAPTER V SUPPORT TO SELF-AUDIT ACTIVITIES
| Article 38 (Support, etc. to Self-Audit Activities by Board of Audit and Inspection) |
| (1) | The Board of Audit and Inspection shall provide necessary support, such as giving advice on audit plans and auditing methods, etc. for the development and efficient implementation of self-audit activities. |
| (2) | The heads of central administrative agencies, etc. may, if necessary, request the Board of Audit and Inspection to support with audit personnel, and the Board of Audit and Inspection shall provide support within the extent that no obstruction to the audit activities of the Board of Audit and Inspection exists. |
| (3) | The Board of Audit and Inspection shall provide education necessary to improve the specialty of the heads of audit organizations and auditors, such as education in the field of audit and accounting. |
| (4) | Except as prescribed in paragraphs (1) and (2), matters concerning support to self-audit organizations and matters necessary for the details, methods, etc. of specialized audit education under paragraph (3) shall be prescribed by Rules of the Board of Audit and Inspection. |
| Article 39 (Examination of Self-Audit Activities) |
| (1) | The Board of Audit and Inspection may examine the actual operational status of self-audit organizations, whether auditing standards and codes of audit practice under Article 37 are observed, self-audit activities, audit results and handling thereof, etc. |
| (2) | The Board of Audit and Inspection may have competent institutions, classified as follows, implement some of the examination duties under paragraph (1) and have them notify the results thereof: <Amended by Act. No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017> |
| 1. | Seoul Special Metropolitan City, Metropolitan Cities, and Dos: Minister of the Interior and Safety; |
| 2. | Offices of Education of Special Metropolitan Cities, Metropolitan Cities, and Dos: Minister of Education; |
| 3. | Sis, Guns, and autonomous Gus: Minister of the Interior and Safety, Special Metropolitan City Mayors, Metropolitan City Mayors, or Do Governor; |
| 4. | Public institutions: Heads of competent agencies. |
| (3) | The Board of Audit and Inspection may request institutions whose self-audit organizations with improved operation are deemed necessary as a result of an examination under paragraph (1) to take measures, such as the enactment of or amendments to regulations relating to self-audit, improvement of systems, etc. |
| (4) | If a self-audit is deemed implemented properly as a result of an examination conducted under paragraph (1), the Board of Audit and Inspection shall be exempt from conducting an audit or part thereof to the extent that it does not undermine the Board of Audit and Inspection’s responsibility to verify an auditee’s financial statements. |
| (5) | It the head of an auditing organization is deemed noticeably negligent in performing his/her audit duties as a result of an examination conducted prescribed in paragraph (1), the Board of Audit and Inspection may recommend that the person having authority to appoint the head of a relevant audit organization or person having authority to recommend appointment of the head of a relevant audit organization replace such head of the auditing organization in question. |
| (6) | The Board of Audit and Inspection shall report the results, etc. of an examination conducted under paragraphs (1) and (3) to the National Assembly. |
| (7) | Necessary matters, concerning the standards, methods and procedures for examination under paragraph (1), recommendations, etc. for replacing the head of an audit organization under paragraph (5) shall be prescribed by Rules of the Board of Audit and Inspection. |
CHAPTER VI PENALTY PROVISIONS
| Article 40 (Penalty Provisions) |
Any person who has violated the duty of confidentiality under Article 29 shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 20 million won.
| Article 41 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: |
| 1. | A person subject to a self audit who refuses such audit without good cause or who fails to comply with a request to submit data; |
| 2. | A person who obstructs self-audit activities without good cause. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the heads of central administrative agencies, etc. (referring to the heads of competent agencies in cases of public institutions) with which self-audit organizations are affiliated. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2010: Provided, That a citation of Article 22 among the provisions of Articles 22 and 27 (3) shall enter into force one year after this Act enters into force. Article 2 (Applicability concerning Notification, Handling, etc. of Audit Results)
The provisions of Articles 23 through 25 shall apply beginning from the first self audit that is conducted after this Act enters into force. Article 3 (Transitional Measures concerning Existing Self-Audit Organizations, etc.)
| (1) | Self-audit organizations as at the time this Act enters into force shall be deemed self-audit organizations under this Act: Provided, That the heads of central administrative agencies, etc. shall establish self-audit organizations in conformity with the provisions of this Act two years after this Act enters into force. |
| (2) | The head of an audit organization as at the time this Act enters into force shall be deemed the head of an audit organization under this Act: Provided, That the persons having authority to appoint the head of an audit organization or members of collegial audit organizations or persons having authority to recommend appointment of such persons shall appoint or recommend appointment of the head of an audit organization or members of collegial audit organizations in conformity with the provisions of this Act one year after this Act enters into force, and the head of an audit organization or members of collegial audit organizations appointed for the first time in accordance with this Act shall be excluded in the ratio of public officials in contractual service under Article 2 (8) of the Government Organization Act. |
Article 4 (Transitional Measures concerning Term of Office of Existing Heads of Audit Organizations or Members of Collegial Audit Organizations)
Where the heads of audit organizations or members of collegial audit organizations as at the time this Act enters into force have been appointed in accordance with the open position system, the term of office thereof shall be the remaining period of the previous term of office.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That from among Acts amended by Article 6 of the Addenda, an amended Act which was promulgated before this Act enters into force and the enforcement date of which has not arrived yet shall enter into force on the date of enforcement of such amended Act.
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 13205, Feb. 3, 2015>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation: Provided, That from among Acts amended by Article 5 of this Addenda, an amended Act which was promulgated before this Act enters into force and the enforcement date of which has not arrived yet shall enter into force on the date of enforcement of such amended Act. |
Articles 2 through 6 Omitted.