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32 listed firms received 'adverse' audit opinions in 2017

All News 12:00 August 07, 2018

SEOUL, Aug. 7 (Yonhap) -- A total of 32 listed firms in South Korea received "adverse" audit opinions last year, and six of them were dropped from stock markets, government data showed Tuesday.

An "adverse" opinion suggests that a company may violate accounting standards or significantly misstate their financial records.

According to a survey of 2,155 listed firms by the Financial Supervisory Service (FSS), 98.5 percent of the firms received clean opinions in their audit results.

The 32 firms were given "adverse" opinions due to violations of accounting standards, insufficient cooperation from management or uncertainties over business perspectives, the FSS said.

Financial Supervisory Service flag (Yonhap)

The nation's top four accounting firms -- Samil PwC, Samjong KPMG, Deloitte Anjin and EY Hanyoung -- accounted for 44.7 percent of the auditor market share.

In terms of market capitalization of auditees, the four accounting firms took 89.2 percent of the market, according to the FSS.

The market share of Deloitte Anjin plunged to 4.9 percent in 2017 from 10.7 percent in 2016 after it was ordered to suspend new audits for one year in April last year.

The punishment came after Deloitte Anjin was found to have committed accounting irregularities for the troubled Daewoo Shipbuilding & Marine Engineering Co.


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