In the season of appointing a new external auditor in a large conglomerate, a no-gunshot war is waged by large accounting firms called “Big 4”.
Samjong KPMG overtook Samil PwC and was rated for gaining momentum in the early stages as she was unexpectedly selected as the new external auditor of the leading company Samsung Electronics.
However, as the process of selecting external auditors for large companies such as Woori Financial, Kakao and Samsung Life continues until the end of the year, some argue that the final report card needs to be observed a little more.
◇ First release of 220 companies nominated auditors… Nominated Samsung Electronics, SK Hynix, Samjeong
According to the accounting industry on the 6th, 220 listed companies, including Samsung Electronics and SK Hynix, have completed the first application of the “system of periodic appointment of auditors” in the past three years and will appoint new external auditors by the end of the year. .
The “system of periodic appointment of auditors” is a system introduced in 2019 in accordance with the revision of the External Audit Act (New External Audit Act). If a company freely appoints an auditor for six consecutive years, it must be designated by the financial authorities for the next three years.
This is a ‘big chapter’ for the accounting industry, as representative domestic companies such as Samsung Electronics return to the free-market market after three years of designated audits.
Samjong has assumed the post of auditor of Samsung Electronics, the largest Korean company.
Samjeong-eun was selected as the external auditor for business year 2023 of Samsung Electronics, the largest customer in the auditing market, and was rated as a surprise in the industry.
For the past three years, Samsung Electronics has set an annual review fee of 7.9 billion to 8.4 billion won for Deloitte Anjin, a regular designated.
The industry predicted that Samil, who had been responsible for Samsung Electronics ‘audit for 40 years prior to the periodic auditor designation system, would likely be the most promising, but Samsung Electronics’ audit committee selected Samjeong through competitive submissions. .
Analysts say that this conclusion may have been reached in terms of emphasizing the image of the “New Samsung” and improving management and accounting transparency.
An industry official said, “Samsung Electronics’ audit has greater symbolic significance as an auditor of ‘Company # 1’ than the size of the compensation itself.
Previously, Samjeong-eun won an audit contract with SK Hynix next year and is now responsible for all “two-top” semiconductor audits.
Additionally, Samjong has also won contracts with Mire Asset Securities and Shinhan Financial Group.
Samil has been selected as the auditor for KB Financial’s next business year.
Anjin has received overhaul contracts with Hyundai Marine & Marine Engineering, EY Hanyoung and Meritz Securities and Meritz Fire & Marine.
◇ The remaining big fish … Periodic notice to persons designated as Hyundai Motor Company
The accounting industry is busy writing proposals for the positions of auditor of the remaining large companies.
Kakao, CJ CheilJedang, Korean Air, Samsung Heavy Industries and Lotte Chemical are also considered “big fish”.
The industry is also paying attention to selecting new external auditors for large financial companies such as the affiliates of Samsung Financial (Samsung Life, Samsung Card) and Woori Financial.
Meanwhile, 554 companies have been notified of the periodic designation this year.
15 of the top 100 companies by market capitalization were included on this list, including Hyundai Motor Company, SK Innovation and LG.
Although the Financial Supervision Service appoints the auditors, it can be changed in case of independence problems or if there is a request for re-appointment.
The financial authorities will make this notice on the 11th after reflecting the opinions.
/ yunhap news
