Financial Supervisory Service (FSS) and 50 Largest Companies

Since the second half of this year, the Financial Supervisory Service (FSS)

On July 23, the Financial Supervisory Service (KFDA) announced that it planned to implement an accounting control method who uses the characteristics of the industry, market indicators, etc. In addition, Improvement "and explained it like that.

The appointment of a manager by company … The characteristics of each industry, the characteristics of each industry,

First, the service Financial Supervisor will select the 50 largest listed companies based on market capitalization and badet size at the end of last year and plans to begin a thorough badysis.

One s & # Expects the badysis to be extended to first-tier conglomerates susceptible to economic weakness, such as shipbuilding and other economically sensitive sectors sensitive to oil price fluctuations and exchange rates.It is conducted in a three-dimensional manner to examine the characteristics of each industry and information on individual enterprises.

For the purpose of badysis by industry, the Financial Supervision Audit (SFS) compares the economic situation of the sector, the characteristics of the business sector and the badet / badet ratio, and specific accounts.

In addition, the Financial Supervisory Service also conducts an individual badysis of the companies. The managers of each company control the information on the company and badyze if there are any abnormal signs.

In the same sector of activity, when only a specific company realizes profits in a certain period of time, it will be able to follow the amount of profits

For example, in the case of iron and steel , the general market conditions and prices of major steel products decreased until 2013 and recovered in 2014. However, if A shows an unusual trend in sales and profits of operating in 2013 and a downtrend in 2014, then A might suspect it as an overestimation of profits and a loss.

In this case the FSS will badyze the heavily weighted badets of the steel industry and the cases of fraud that have often occurred in the steel industry in the past.

In this regard, the Commission for Financial Supervision (KFDA), in response to the question, "provides information on a close badysis of the link between market indicators and the performance of the company, This will allow a more efficient accounting supervision while using it for accounting audits. "In addition, the financial supervisory service should" contribute to the achievement of the objectives of preventive supervision by limiting the incentives of companies to account for accounting fraud . "

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