Auditing Fears Downplayed
Some industrial analysts' concern that stricter auditing on corporations would reveal huge holes in companies' financial statements was found groundless, said the Financial Supervisory Service Tuesday.The financial watchdog said the same day that 89.2 percent of about 6400 corporations whose fiscal year 2000 ends in December received "qualified opinion" from the outside auditors. The rate was even higher than 88.5 percent in 1998 and 87.9 percent in 1999.
"Many worried that more than 10 percent of the companies would get 'adverse opinion' or 'disclaimer of opinion,'" said a supervisory official. "But it was not true."
Although auditing has become more conservative, companies accepted most of what auditors said, the official explained.
with the Korea JoongAng Daily
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