ACT ON EXTERNAL AUDIT OF STOCK COMPANIES
CHAPTER II COMPANIES AND AUDITORS
조문단위인쇄
| Article 8 (Operation of Internal Accounting Control System) |
| (1) | Each company shall have internal accounting control regulations which include the following matters and shall have a system to manage and operate them (hereinafter referred to as "internal accounting control system") for preparing and publish reliable accounting information: Provided, That the same shall not apply to a company other than a stock-listed corporation with total assets of less than 100 billion won as at the end of the immediately preceding business year and a company prescribed by Presidential Decree: |
| 1. | Matters concerning the method of identification, measurement, classification, documentation and reporting of accounting information (including transaction-related information which forms the basis for accounting information; hereafter the same shall apply in this Article); |
| 2. | Matters concerning the method of controlling in errors of accounting information and correcting them; |
| 3. | Matters concerning the internal verification, such as regular inspections and adjustment, etc. of accounting information; |
| 4. | Matters concerning the method of managing books of accounting information (including magnetic tapes, diskettes and other information storage devices) and the controls to prevent forgery, alteration, damage, or destruction; |
| 5. | Matters concerning the segregation of duties and responsibilities of the executive officers and employees related to preparing and publishing accounting information; |
| 6. | Other matters prescribed by Presidential Decree which are necessary to prepare and publish reliable accounting information. |
| (2) | No company shall prepare accounting information contrary to the internal accounting control system, or forge, alter, damage or destroy the accounting information which has been prepared under the internal accounting control system. |
| (3) | The representative of a company shall assume the responsibility for controlling and operating the internal accounting control system and shall designate one of the full-time directors to be in charge of the system (referring to any person who performs the duties of a relevant director, where no director is in charge) as an internal accounting manager (hereinafter referred to as "internal accounting manager"). |
| (4) | The representative of a company shall report the operational status of the internal accounting control system of the relevant company to the general meeting of shareholders, the board of directors and the statutory auditor (if an audit committee has been established, referring to the audit committee; hereafter the same shall apply in this Article) each business year: Provided, That where the representative of a company deems it necessary, he or she may assign the internal accounting manager to report the same to the board of directors and the statutory auditor. |
| (5) | The statutory auditor of a company shall evaluate the operational status of the internal accounting control system; shall report the status to the board of directors in each business year; and shall keep such evaluation report at the head office of the relevant company for five years. In such cases, if he or she has any corrective opinions on controlling and operating the internal accounting control system, he or she shall include them in the report. |
| (6) | In conducting an audit, an auditor shall examine whether the relevant company has complied with the matters prescribed in this Article and the details of the report on the operational status of the internal accounting control system referred to in paragraph (4): Provided, That the auditor of a stock-listed corporation (excluding a stock-listed corporation whose total assets as of the end of the immediately preceding business year is less than 100 billion won) shall audit to ascertain whether the matters prescribed in this Article have been complied with and the details of the report on the operational status of the internal accounting control system referred to in paragraph (4). <Amended on Jan. 17, 2023> |
| (7) | An auditor who has conducted an examination or audit pursuant to paragraph (6) shall state his or her overall opinion on the findings of the examination or of the audit in the audit report. |
| (8) | Except as provided in paragraphs (1) through (7), matters necessary for operating, etc. the internal accounting control system shall be prescribed by Presidential Decree. |